Release Notes 26.6.1

3 Release Notes 26.6.1

NetSuite for Government 26.6.1 Release Notes

Revision Date: June 03, 2026

Important:

This document summarizes the changes to NetSuite for Government between 26.6.1 and the previous release. These release notes are subject to change every week.

The 26.6.1 enhancements and changes listed in this document are not available to customers until they are upgraded to NetSuite for Government 26.6.1. Your access to these features and SuiteApps is subject to the terms of service in your NetSuite for Government contract.

Please also review the NetSuite general release notes for a comprehensive view of changes to the release. During this release period, NetSuite version 2026.1 is released. The general NetSuite release notes are accessible at this link:

https://docs.oracle.com/en/cloud/saas/netsuite/ns-online-help/book_N3865324.html

NetSuite for Government Version 26.6.1 – Release Date June 03, 2026

Finance:

Balancing Segments:
- Balancing Segments for the Specify option has been updated to skip additional balancing lines on the Deposit record for Customer Payments and Customer Refunds if these transaction have already posted to Cash for the transaction funds. If instead, the Undeposited Account is used in the Cash Account for the Customer Payment, the additional balancing lines to transfer from Undeposited to Cash will continue as it does today.
- For Balancing Segments, customer payment rounding logic has been enhanced to ensure prorated payment amounts are accurately allocated to funds in partial payment scenarios. Previously, pennies could be overallocated on the first payment and corrected on subsequent payments, with the final total remaining correct.
Encumbrance Point in Time:
- The Change Order process will now use the Effective Date on the line for all encumbrance activity. Prior to this change, the purchase order date was used for several of the change order encumbrance activity.
Carry Forward Encumbrances at Year-End:
- The year-end encumbrance carry forward process has been corrected to ensure the final general ledger account associated with an encumbrance is used during carry forward. Previously, the process could carry forward a general ledger account that had been used earlier and later changed, rather than the most recently applicable account.
Purchasing Change Orders:
- The Purchasing Change Order reference number format has been enhanced to improve traceability between purchase orders and their associated change orders. With this update, the change order reference number can now be generated using the format: Purchase Order Number + Change Order Number For example, purchase order PO26123 will generate the following change order reference numbers:
  - Change Order Reference Number
  - First change order PO26123-1
  - Second change order PO26123-2
    The reference number is generated when the purchase order is updated. This ensures that canceled change orders do not affect the numbering sequence and that the original purchase order number remains the basis for the reference number. This reference number is separate from the unique transaction reference number, which continues to be available in the Transaction Number field.

Various Fixes and Performance Improvements

Vendor Bills created during Bill Capture and other automatic record creations will now pass through the purchase order validations for encumbrance remaining balance as well as PO Tolerance controls.
Improved performance for full pay adjustment processing on vendor bills. Full pay adjustment processing has been optimized to improve performance when working with vendor bills that include multiple PO lines. Previously, the system retrieved encumbrance balance information one PO line at a time, which could slow down processing for larger vendor bills. With this update, the system now retrieves the relevant encumbrance totals for all applicable PO lines in a single query and reuses that information while processing each line. This change reduces unnecessary repeated queries and helps full pay adjustment processing complete more efficiently, especially for larger vendor bills.
Improved encumbrance processing performance for transactions with many lines. Encumbrance creation and delta processing has been optimized to improve performance when working with transactions that contain a large number of lines. As part of this update, several encumbrance-related queries were reviewed and improved, including queries used for billed quantity, requisition order quantity, requisition data, full pay adjustments, and primary transaction data. Previously, some processing logic evaluated transaction line details separately across multiple functions. This update introduces shared transaction line context so line IDs and remaining balance snapshot information can be processed once and reused where needed. The related queries can now retrieve data for multiple lines at a time instead of processing each line individually. The updated logic also supports transactions with more than 1,000 lines by batching line IDs into groups that work within query limits.

Human Resources and Payroll:

Reporting Period Enhancements:
- Auto-Save State Retirement Report Files to Entity-Configured Folder:
  - What's New?
    When State Retirement report files are automatically generated for a reporting period, the system now stores them in the File Cabinet folder configured for the entity associated with that reporting period — rather than relying on a single global default.
  - Configuration Path:
    
    The destination folder is read from:
    
    Payroll and HR Preferences > Compliance > Public Employee Retirement System > State Retirement Reports File Cabinet Location
  - How Entity Resolution works?
    
    If the reporting period has a single assigned entity, the system uses that entity's configured folder. If the reporting period has multiple assigned entities, the system selects the entity with the lowest internal ID and uses that entity's configured folder. Child entities are honored — the system does not fall back to a parent entity's folder when a child entity has its own configuration.
  - Missing Configuration Handling: If no folder is configured for the resolved entity when files are generated, the system:
    - Logs an error to surface the misconfiguration.
    - Prevents silent failure — files are not stored to an untracked location
    - Surfaces the issue so an administrator can complete the configuration and regenerate.
    Scope note: This change applies to files where type = State Retirement System. W-2 and ACA file storage are governed by their own configuration paths and are not changed by this release.
  - What Administrators should verify?
    - Confirm the State Retirement Reports File Cabinet Location is set under each entity that produces state retirement reports.
    - For shared-service environments with child entities, verify the child entity's folder is set — not just the parents.
    - After a generation run, confirm files are visible in the expected File Cabinet folder and accessible through standard file access mechanisms.
- Granted the NS4G – Payroll Administrator role full access to the Employee Retirement Reporting record to support manual deletion when needed.
Fund Allocation Percentage Validation:
- What's New?
  The system now validates that each contributing position record's fund allocation percentages total exactly 100.00% before any GL lines are written for an employee. If a position fails the check, GL posting is blocked for that employee, an actionable error is logged, and processing continues normally for everyone else.
- Why this matters?
  
  Previously, an employee whose allocations summed to 99% or 101% would silently produce mathematically incorrect GL journal entries. This guardrail prevents unbalanced postings from reaching the General Ledger.
- How it works?
  - Validation fires at Employee Posting Detail generation only — payroll batch calculation is unchanged.
  - For each employee, the system evaluates the primary position plus any secondary positions referenced on timecards in the batch.
  - Secondary positions that exist on the employee master but are NOT referenced on any batch timecard are excluded from the check.
  - Sums are computed using fixed-decimal (integer) arithmetic to avoid floating-point rounding artifacts.
  - Validation applies to both Method A and Method B — there is no preference or toggle to disable it.
- What users will see?
  When a position record fails validation, an error will appear in the error view of the payroll batch and entry is written to the posting detail error log.
- Run Status Behavior:
  - Posting detail run status reads Completed with Errors when at least one employee is blocked.
  - Blocked employees are skipped; all other employees post normally.
  - The batch calculation itself is not affected — calculated pay amounts remain in the batch.
  - Each invalid position generates its own error entry; multiple invalid positions for one employee produce multiple log lines.
- Corrective Workflow:
  - Review PAY-ALLOC-001 entries in the posting detail error log.
  - Correct the fund allocation percentages on the identified employee position and pay records so they total 100.00%.
  - Recalculate the affected employee — a full batch recalculation is not required.
Maine PERS Configuration:
- What's New?
  NetSuite for Government now supports configuration screens required for the Maine Public Employees Retirement System (MainePERS) Electronic Payroll File (EPF). The payroll file will be available in a future release.
- Configuration Setup:
  Maine PERS values are deployed inactive system-wide and activate automatically when Payroll and HR Preferences > Primary State = Maine. The following State Compliance Setup record types are introduced:
  - Personnel Status Code (codes 11, 12, 14, 15, 17, 53)
  - Retirement Plan / Plan Benefit Program (e.g., 110AC, 110AN, 3101C, 3104N — Teacher and PLD plans)
  - Time Unit Code (H = Hours, C = Contract, D = Days)
  - Retirement Plan Participation Status (A = Active, Y = Employer Paid)
  - Rate Schedule Number (RSN) — six-digit codes covering Teacher, PLD Age 60, PLD Age 65, RRTW, and limited-period (PTX) categories
  - Benefit Plan Class (Plan Code) — 11000, 11001 for Teacher Regular and PLD Regular plans
  - Employer Payroll Cycle (A, B, W, T, M — Cycle A/B for State of Maine; Weekly, Bi-Weekly, Monthly)
  - Position Classification Code — PLD General codes from Table #7 (09901 Member, 09903 Firefighter, 09904 Law Enforcement, 09905 County Corrections, 09906 Elected/Appointed, 09907 Paramedic EMS, 09908 Dispatcher)
  - Transaction Type (N = Original Filing, P = Purchase of Service)
- Out of scope for initial release:
  - Non-Teacher School Support PLD codes (Table #8) and Teacher Member codes (Tables #9, #10a, #10b) are not deployed in this release — NS4G does not currently support K-12 school districts. These values will be added when a school district client is onboarded.
- New Employee Retirement Record Form:
  A new form, NS4G Maine PERS Retirement System, is added — copied from the existing NS4G Employee Retirement / Compliance Misc form. When Payroll and HR Preferences → Primary State = Maine, this becomes the default form on the Employee Retirement Record. A new Maine PERS Retirement System field group is displayed with the following fields:
  
  Field: Personnel Status Code | Notes: Mandatory. Maps to D-9 in the EPF
  
  Field: Position Classification Code | Notes: Mandatory. Maps to D-11 in the EPF
  
  Field: Time Unit Code | Notes: Optional. Maps to D-26
  
  Field: Retirement Plan Participation Status | Notes: Mandatory. Maps to D-18
  
  Field: Benefit Plan Class | Notes: Mandatory. Maps to D-35
  
  Field: Rate Schedule Number | Notes: Mandatory. Maps to D-36 as a 6-digit zero-padded code.
- New Reporting Period Field — Location Code:
  The Reporting Period record gains a Maine-specific Location Code field — required when the State Retirement System is set to MainePERS, hidden for all other systems. The Location Code is the identifier MainePERS assigns to each employer location and appears in every Detail (D-2) and Summary (S-2) record.
  - Free-text, alphanumeric, max 6 characters.
  - If empty when Maine PERS is selected, file generation is blocked with the message: 'Location Code is required. Please enter the Employer Location Code assigned by MainePERS.
2026 Louisiana State Tax Calculation:
- Updated the Louisiana State tax calculation rule with the 2026 brackets to ensure accurate calculations.
Maine State Tax — 2026 Brackets and Calculation:
- What's New?
  The Maine state tax engine has been updated to apply the 2026 Maine Deduction Rate Tables, the $5,300-per-allowance personal exemption, and the Maine Standard Deduction phase-out. The State Filing Status record for Maine supports two values — Single and Married — which drive which annual rate table is used.
- Single Filers:
  Year: 2026 | Cycle: Annual | Over: $0 | Not Over: $27,400 | Base Tax: $0 | Rate/Subtract: 5.80% (over $0)
  
  Year: 2026 | Cycle: Annual | Over: $27,400 | Not Over: $64,850 | Base Tax: $1,589 | Rate/Subtract: 6.75% (over $27,400)
  
  Year: 2026 | Cycle: Annual | Over: $64,850 | Not Over: N/A | Base Tax: $4,117 | Rate/Subtract: 7.15% (over $64,850)
- Married Filers:
  
  Year: 2026 | Cycle: Annual | Over: $0 | Not Over: $54,850 | Base Tax: $0 | Rate/Subtract: 5.80% (over $0)
  
  Year: 2026 | Cycle: Annual | Over: $54,850 | Not Over: $129,750 | Base Tax: $3,181 | Rate/Subtract: 6.75% (over $54,850)
  
  Year: 2026 | Cycle: Annual | Over: $129,750 | Not Over: N/A | Base Tax: $8,237 | Rate/Subtract: 7.15% (over $129,750)
- Withholding Calculation Steps:
  
  Step 1 — Annualize wages: Take the new Maine taxable wages pay bucket (ns4g_mainetx_pay) for the pay period and multiply by the number of pay periods per year (custrecord_ns4g_payperiod_periodsperyr).
  
  Step 2 — Personal exemption: Multiply the number of state dependents/allowances (custentity_ns4g_taxes_statedependents) by $5,300.
  
  Step 3 — Maine Standard Deduction: Apply the phase-out based on annualized wages — see thresholds below. Rounding follows Maine's rounding rule, to 4 decimals, rather than the NetSuite Payroll calc precision.
  
  Step 4 — Annualized income: Annualized wages − allowances − standard deduction. If less than $0, withholding is zero.
  
  Step 5 — Annual withholding: Look up the annualized income on the Single or Married rate table per the employee's state filing status (custentity_ns4g_taxes_statestatus).
  
  Step 6 — Per-period withholding: Divide the annual withholding by the pay frequency from Step 1 and round to the nearest dollar using Maine's rounding rule.
- Maine Standard Deduction — Phase-Out:
  Filing Status: Single | Annualized Wages: ≤ $102,250 | Standard Deduction: $12,450
  
  Filing Status: Single | Annualized Wages: $102,250 < W < $177,250 | Standard Deduction: $12,450 × ($177,250 − W) ÷ $75,000
  
  Filing Status: Single | Annualized Wages: ≥ $177,250 | Standard Deduction: $0
  
  Filing Status: Married | Annualized Wages: ≤ $204,550 | Standard Deduction: $27,750
  
  Filing Status: Married | Annualized Wages: $204,550 < W < $354,550 | Standard Deduction: $27,750 × ($354,550 − W) ÷ $150,000
  
  Filing Status: Married | Annualized Wages: ≥ $354,550 | Standard Deduction: $0
- Worked Example:
  A single employee paid $300 each week claims two withholding allowances on Form W-4ME.
- Example Calculation:
  Step 1 (Annualized Wages): $300 × 52 = $15,600
  
  Step 2 (Personal Exemption): 2 × $5,300 = $10,600
  
  Step 3 (Standard Deduction): $12,450 (annualized wages ≤ $102,250)
  
  Step 4 (Annualized Income): $15,600 − $10,600 − $12,450 = −$7,450
  
  Result (Withholding Amount): $0 (annualized income < $0)
Utah State Tax Calculation 2026:
- Updated the Utah state tax calculation with the newly released 2026 brackets.
Payroll Auditing:
- Resolved an issue with the bell icon on the Employee Pay Stub.
Payroll Register Report – Suitelet:
- What's New?
  A new Payroll Register report type is now available in the Payroll Reports Suitelet. It replaces the need to run five separate reports — Pay Stub, Pay Code, Hour Code, Hour Bucket, and Pay Bucket — and adds a standardized end-of-report audit section covering totals and exceptions.
- Reporting Period Options:
  - Pay Period (existing) — select a specific committed pay period from the drop-down.
  - Payment Date Range (new) — provide a Begin Date and End Date. The system validates End ≥ Begin and limits results to committed batches only.
  - The two modes are mutually exclusive; selecting one hides the other's controls.
- Employee Filters:
  - All / Group / Specify radio buttons (existing behavior).
  - Group type now includes Department, Location, Bargaining Unit, and the new Entity option.
  - When Entity is selected as Group, a multi-select Entity field with type-ahead lookup is displayed.
  - When Specify is selected, a multi-select Employee field is displayed (existing behavior).
- Sort & Totals:
  A new Sort & Totals field group is added with four preset sort options:
  - Entity > Department > Employee ID
  - Entity > Department > Last Name, First Name
  - Employee ID
  - Employee Last Name, First Name
  Subtotals can be enabled at four levels via checkboxes — Entire Report, Entity, Department, and Employee. Defaults:
  - Entire Report — ON
  - Department — ON
  - Entity — OFF
  - Employee — OFF
  Page-count note: Enabling the Entity subtotal adds a subtotal page per subsidiary, which can significantly increase total page count in multi-entity runs. Subtotal summary pages prefix (appear before) the detail pages they summarize, so managers and auditors can review rolled-up totals before drilling into individual detail.
- Output and Delivery:
  - Output format is PDF only in this release. CSV/Excel are not supported.
  - Open PDF in New Tab — runs the report and streams the PDF directly to the browser in a new tab. No File Cabinet save is required and no administrator role is needed beyond the existing Suitelet access.
  - Save Report to File Cabinet (checkbox) — optional and decoupled from the open-in-tab path. When checked, a File Cabinet selector dropdown appears, scoped to cabinets the user has access to within their entity/subsidiary.
- Report Content:
  - Per-employee detail pages — reuse the existing Pay Stub layout for header, earnings, deductions, taxes, employer-paid benefits, time off, and checks/direct deposits.
  - Aggregated Totals page (new) — consolidated pay, tax, deduction, and employer benefit totals for the run.
  - Employee Summary — flags employees with zero net pay.
  - Warnings section — surfaces exceptions such as negative pay and Social Security / Medicare tax mismatches.
Payroll Register - Employee Detail Pay Period Mode:
- In Pay Period mode, several totals now read from Employee Payroll Totals rather than Payroll Audit. This ensures values stay accurate after a recalculation:
  - Net Pay Totals
  - Pay Summary — Gross Pay bucket
  - Taxable Wages — Federal, Social Security, Medicare, and State
  - Pay Summary — Deductions line (derived as Gross − Net Pay where no corresponding totals bucket exists).
- Time Off Balance — Pay Period Mode Enhancements:
  The existing Pay Stub time-off logic does not fully fit this report because the register can be run either before or after a payroll is committed. The Previous Balance and Balance columns now use updated.
  - Previous Balance — inception-to-date sum of payroll totals whose status is Commit Submitted, Committed, or Committed-Historical, where the associated pay period payment date is on or before the currently processed payment date. The current pay period is excluded.
  - Earned — hours earned in the current pay period (unchanged logic).
  - Used — hours used in the current pay period (unchanged logic).
  - Balance — calculated as Previous Balance + Earned − Used.
- Per-Employee Detail — Common Updates (Both Modes):
  The following per-employee page changes apply in both Pay Period and Payment Date Range modes:
  - Entity label and name are now displayed above Department in the top-right of the employee header.
  - The lower-left entity watermark / logo block has been removed from per-employee pages.
Payroll Register - Employee Detail Payment Range Mode:
- When the Payment Date Range option is selected, the per-employee detail page is restructured to reflect the aggregated, multi-period nature of the run. Most existing Pay Stub rendering can be reused for earnings, deductions, and employer benefits — the differences are around column structure, header fields, and which sections appear.
- Pay Statement Modes Comparison:
  Element: Amount Column Header | Pay Period Mode: CURRENT (with separate YTD column) | Date Range Mode: AMOUNT — single column, aggregated across the range
  
  Element: YTD Column | Pay Period Mode: Shown | Date Range Mode: Removed entirely — avoids confusion when the range spans multiple calendar years
  
  Element: Pay Period & Pay Date in Header | Pay Period Mode: Shown | Date Range Mode: Removed — replaced by Date Range: MM/DD/YYYY – MM/DD/YYYY
  
  Element: Memo Field | Pay Period Mode: Shown | Date Range Mode: Removed — not meaningful for an aggregated view
  
  Element: Checks & Direct Deposits Section | Pay Period Mode: Shown | Date Range Mode: Removed — not meaningful across multiple committed batches
  
  Element: Time Off — Previous Column | Pay Period Mode: Shown (uses SLERP-15171 logic) | Date Range Mode: Removed — Time Off uses different shape (see below)
- Date Range Mode — Earnings, Deductions, Employer Benefits
  - Earnings (Hourly Pay, Accrual, Additional Pay), Pre-Tax Deductions, Taxes, Post-Tax Deductions, and Employer Paid Benefits are each rendered with a single AMOUNT column.
  - Amounts are aggregated across every committed batch whose payment date falls inside the selected range.
  - Pay (Gross Pay) and Taxable Wages buckets read from Employee Payroll Totals — matching the Pay Period mode requirement so totals reflect post-recalculation accuracy.
  - Pay — Deductions line continues to derive from Audit (no corresponding Payroll Totals bucket); may be computed as Gross − Net Pay.
- Date Range Mode — Time Off
  Time Off in Date Range mode uses a different column shape and data source than Pay Period mode:
  - The Previous column is removed.
  - Earned, Used, and Balance each draw from Employee Payroll Totals pay buckets via the Time Off category mapping, using a date range appropriate to each column.
  - Earned and used reflect activity within the selected date range; Balance reflects the inception-to-date balance through the end of the range.
Custom Segment Posting Override — Pay Code & Hour Code:
- What's New?
  The Pay Code and Hour Code Accounting field groups now honor agency-configured NetSuite custom segments as posting defaults. When an agency surfaces a custom segment on the Pay Code or Hour Code record and populates a value, that value defaults onto Employee Posting Detail — using the same logic already applied to the Department, Grant, Project, Project Task, and Program/Class fields on the same record.
- Goal:
  Parity with existing override fields. No new posting layer, no Posting Map changes, and no Fund Validation changes.
- How It Works?
  - Agencies surface any custom segment as a field on the Pay Code or Hour Code record via standard NetSuite custom segment configuration (Customization > Custom Segments > Application & Sourcing). No NetSuite for Government code change is required for the field to appear.
  - At Calculate Employee Posting Detail, populated custom segment values are defaulted onto every posting line generated for that code — same step in the Default Posting Hierarchy that already houses Department, Grant, Project, and Program/Class.
  - Each custom segment is evaluated independently. A populated value on one segment does not require a value on another.
  - Custom segment values are added to both Fund Allocation Methods (Method A and Method B).
- Account-Type Eligibility:
  Custom segment values follow the same subledger eligibility rules as Grant, Project, and Program/Class — applied on posting lines whose account type is Cost of Goods Sold, Expense, Other Expense, Income, or Other Income, and nulled on Asset, Bank/Cash, Liability, and Equity lines.
- Quick Code Exact-Match Search: When Use Quick Codes in Employee Postings is set to Assign on Exact Match, the Pay Code or Hour Code custom segment value is included in the exact-match search alongside the existing segments. Agencies enabling defaults will not see spurious Unmatched Quick Code errors as a result of the new fields.
- Audit Trail:
  Every Employee Posting Detail line whose custom segment value was sourced from the Pay/Hour Code default records the source in the line's posting source audit field as:
  - Pay Code Default - [Custom Segment Name]
  - Hour Code Default - [Custom Segment Name]
- Out of Scope:
  - Payroll Posting Map — custom segments are not supported in either Selection Criteria or Fields to Update on Posting Map records, and that remains unchanged.
  - Fund Validation — does not key on custom segments.
  - Employee Fund Allocation, Default Fund Allocation on Position, and Position/Pay record changes are unaffected.
  - Vendor Bill carry-through is being confirmed separately with the Vendor Bill PRD owner (open question).
- Worked Example: An agency surfaces an Activity Code custom segment on the Pay Code record. Pay Code = Employer Health Premium (Debit 5210 Health Insurance Expense, Credit 2105 Health Insurance Payable). Activity Code on Pay Code = 410. Employee allocation: 60% Fund 10 / 40% Fund 52. Period contribution: $480.
  Line: 1 | Side: Debit | Fund: 10 | Account: 5210 | Activity: 410 | Amount: $288.00 | Source: Pay Code Default - Activity
  
  Line: 2 | Side: Debit | Fund: 52 | Account: 5210 | Activity: 410 | Amount: $192.00 | Source: Pay Code Default - Activity
  
  Line: 3 | Side: Credit | Fund: Default | Account: 2105 | Activity: (null) | Amount: $480.00 | Source: Liability — not subledger-eligible
  Tie-out: Debits ($288 + $192) = Credit ($480). Activity 410 captures the full $480 of expense regardless of fund split.
New Fund Allocation Method: Default Allocation with Remainder Adjustment:
- What's New?
  A new opt-in Fund Allocation Method is available — Default Allocation with Remainder Adjustment. The existing method has been kept fully unchanged and renamed Default Allocation by Primary Position; only its label has been updated.
- Why this matters?
  Under the existing method, when a pay or deduction amount cannot divide evenly across funds, the $0.01 rounding remainder is posted to account 2212 — Accrued Payroll Direct Deposit. Auditors see an unexplained $0.01 credit on a balance-sheet liability account every payroll cycle. The new method eliminates the 2212 residual line entirely by absorbing the remainder into the last fund's GL line, leaving the journal self-balancing per fund.
- How the Two Methods Compare?
  Behavior: Spreading Logic | Method A — Default Allocation by Primary Position: ROUND(total × pct, 2) for every fund | Method B — Remainder Adjustment: ROUND(total × pct, 2) for all but last; last fund = total − sum of others
  
  Behavior: Rounding Residual Handling | Method A — Default Allocation by Primary Position: Posts $0.01 to account 2212 when remainder exists | Method B — Remainder Adjustment: Absorbed into last fund's GL line
  
  Behavior: Account 2212 Posting for Rounding | Method A — Default Allocation by Primary Position: Yes — each cycle that produces a remainder | Method B — Remainder Adjustment: Never
  
  Behavior: Opt-in Required? | Method A — Default Allocation by Primary Position: No — already active under its new label | Method B — Remainder Adjustment: Yes — admin must switch in Preferences
  
  Behavior: Effect on Existing Posted Journals | Method A — Default Allocation by Primary Position: Unaffected | Method B — Remainder Adjustment: Unaffected
- How to Switch Methods?
  Before switching, confirm there are no in-progress (not yet posted) payroll runs open for the entity. The setting applies to the next new payroll run only and does not retroactively affect runs already in progress or posted history.
  - Navigate to Payroll > Setup > Payroll and HR Preferences and select your entity.
  - Open the Fund Allocation tab and the Fund Allocation Method drop-down.
  - Select Default Allocation with Remainder Adjustment and click Save.
  - Process a test payroll run for one multi-fund employee and verify the GL output contains no account 2212 residual line.
  - To revert, repeat the steps and select the renamed existing method — no data is lost when switching.
- Scope note:
  Fund Allocation Method is an entity-level setting. All employees processed under the same entity use the same method for a given payroll run. You cannot mix methods within an entity. Single-fund employees behave identically under both methods.
ACA File — Strip IRS-Prohibited Special Characters:
- What's New?
  On commit, when generating the ACA XML transmission, the system now strips characters that the IRS prohibits or restricts in Forms 1094-C / 1095-C and 1094-B / 1095-B submissions (per IRS Publication 5165, Section 4.3.3). Without this change, transmissions containing certain characters in employer/employee name and address fields are rejected by the IRS upon receipt.
- Important:
  These changes happen only in the generated XML file — the underlying NetSuite records are not modified. Employee and employer master data remains unchanged.
- Commas and Periods Removed from Names and Addresses:
  Commas and periods are stripped from the following ACA file fields for both the employer and the employee:
  - BusinessNameLn1, BusinessNameLn2
  - AddressLine1, AddressLine2
- Caution:
  Periods are not stripped from decimal numeric fields such as minimum contribution. Stripping is scoped to name and address text fields only.
- Examples:
  Original Value: 999 East Tabernacle St. | Value Written to XML: 999 East Tabernacle St
  
  Original Value: Sky Rocket Rd. APT H999 | Value Written to XML: Sky Rocket Rd APT H999
  
  Original Value: 999 E Raintree Ln, Unit C | Value Written to XML: 999 E Raintree Ln Unit C
- Double Dash and Hash Key Removed:
  On commit, when generating the XML file for both the 1094C_Request and the Manifest_1094, the system applies the following transformations — common in employee addresses, which cannot be edited in NetSuite directly:
  - The hash key character (#) is removed entirely.
  - A double dash (--) is replaced with a single dash (-).
- Examples (from IRS Publication 5165, §4.3.3):
  Original Value: Street Address Apartment #10 | Value Written to XML: Street Address Apartment 10
  
  Original Value: NoPlaceWay--Suite 4 | Value Written to XML: NoPlaceWay-Suite 4
- Escape Characters:
  Other XML-sensitive special characters that the IRS prohibits are also stripped from the generated file. Because employee names and addresses cannot be modified in NetSuite, the cleansing is applied during file generation only. Reference: https://www.irs.gov/pub/irs-pdf/p5165.pdf

Various Fixes and Performance Improvements