Release Notes 26.2.1

4 Release Notes 26.2.1

NetSuite for Government 26.2.1 Release Notes

Revision Date: February 04, 2026

Important:

This document summarizes the changes to NetSuite for Government between 26.2.1 and the previous release. These release notes are subject to change every week.

The 26.2.1 enhancements and changes listed in this document are not available to customers until they are upgraded to NetSuite for Government 26.2.1. 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 2025.2 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 26.2.1 – Release Date February 04, 2026

Finance:

Departmental Reporting / Budget vs Actual:
- Added a consolidated budget vs actuals view within the Governmental Budget vs Actuals workbook. This allows users to see their budget vs actuals in a single view.
Government Budget Validation Setup:
- Corrected an issue where the System Setup screen Parent Budgeting Account settings were not saved properly.
Balancing Segments:
Enhanced Fund Balancing Now Available with NetSuite for Government Balancing Segments.
We are pleased to introduce significant enhancements to fund balancing in NetSuite for Government, now available through Balancing Segments functionality.
- Key Highlights:
  - Multiple Funds per Transaction:
    - You can use multiple funds on a single transaction and natively balance on the GL Impact tab. NetSuite for Government will automatically generate the necessary inter-fund offsetting entries to keep all funds in balance.
    - Real-Time Inter-fund Entries:
      
      Once configured, inter-fund balancing transactions are created and displayed on the GL Impact tab of supported transactions. The balancing lines are system generated and posted with the original transaction—eliminating the need for separate, month-end balancing processes. Additionally, tracking the Department field on all balancing transactions is supported.
      
      Up-to-Date Reporting:
      
      With inter-fund balancing available in real time, agencies can accurately run balance sheets at any point in the month for complete, timely visibility into fund balances.
      
      For detailed setup instructions and best practices, please refer to the product documentation and reach out to your NetSuite representative. This feature is required to be tested first in your sandbox account to ensure complete configuration and all use cases are reviewed.
- The ability to print and export from the View GL Details button is now available for GL posting transactions.

Various Fixes and Performance Improvements

Reverted changes for the inactive segments button. This will allow users to type into the account field to find the accounts they are looking for.
Default parent subsidiary to allow users a better user experience.
The Location field is now supported in Encumbrances to allow for accurate budget to actual actual information including the location.
Corrected an issue on the Customer Payment and Cash Sales screens where an error was presented when using the Save and Print option.
Implemented a new paginated Related Records tab for Expenses and Revenues on the Project Record.
A validation on the Item Account is now given on save of transactions to ensure that only Accounts from the transaction subsidiary are allowed.
Corrected an issue the Requisition to Purchase Order conversion did not complete due to errors. This has impacted the "Show In" functionality for the Item Account so that all accounts are currently displayed.

Human Resources and Payroll:

Affordable Care Act 2025 Software ID:
- The Software ID has been updated to 25A0023523 for the 2025 reporting year (to be submitted in 2026).
State Taxable Exempt: Wages vs Tax Withheld:
- Background:
  - When employees mark themselves as "exempt" on their W4 forms, it generally means they are exempt only from tax withholding; employers are still required to accrue state taxable wages. To support different exemption scenarios, two checkboxes have been introduced: one for exempting only tax withholding, and the other for exempting both state taxable wage accrual and tax withholding.
  What’s New?
  - Renamed Field: Exempt - State Taxable Wages and Tax Withholding
    - What Changed:
      - The field previously named Exempt - State Tax has been renamed to Exempt - State Taxable Wages and Tax Withholding (custentity_ns4g_taxes_stateexempt).
      - Select this checkbox when the employee should not accrue state taxable wages and tax withholding should not be calculated.
    Note:
    The existing logic connected to this field has not changed.
  - New Field: Exempt - State Tax Withholding
    - Description: Select this checkbox if the employee has indicated exemption on their State W4 or has requested to stop state tax withholding. When selected, state tax deductions will not be processed, but taxable wages will continue to be accrued.
    - Field Logic: When this box is checked, the system will not run the relevant state tax withholding calculation for the employee (as specified in the "State Tax" field custentity_ns4g_taxes_state). However, the employee’s taxable wages will still be tracked and accrued.
Deferred Compensation:
SECURE Act 2.0 Special Catch-Up
- A new field, Special Catch-Up Amount (Ages 60–63), has been added to the Deferred Compensation Limit Table. In accordance with SECURE Act 2.0, this field will specify the increased catch-up limit for participants aged 60–63 in 457(b), 401(k), and 403(b) plans. The applicable calendar-year limit will be entered here. The system logic has been enhanced to evaluate employee ages and apply age-based criteria. For employees aged 60–63, the system will use the value from the Special Catch-Up Amount (Ages 60–63) field in place of the standard catch-up amount. For employees aged 64 or older, the standard catch-up amount will be reinstated.
Payroll Postings : Transaction Line Consolidation and Vendor Bill Performance Enhancements:
- Background:
  - When editing bills associated with Payroll: users encounter page timeout messages during the editing process if budget checking is configured at the line item level and there is a large volume of lines. When vendor bills are created, they can contain approximately 150 expense lines, all sharing the same GL String (Fund, Department, Account, Class). Because budget validation is performed at the individual line level for these employees, the large number of lines leads to performance challenges when saving or editing records. A similar issue is observed in the payroll posting report, where amounts are often distributed across multiple lines. This typically occurs when employees have allocations split across various funds—such as grants, projects, and project tasks. While the grant, project, and task details are excluded from the liability/credit, they are separated earlier in the workflow process.
- Development:
  - Enhancements have been made to the payroll posting logic and vendor bill creation processes: the system now consolidates lines based on the GL String (and by unique employee if employee-level posting is enabled). This reduction in the number of lines should improve system performance when editing vendor bills.
Payroll Postings: Post Payroll Cash to Employee Fund Allocation
- The system will now evaluate the payroll batch entity and review the Payroll and HR Preferences for that entity. If the Fund Allocation > Balance Payroll Payables field is checked (true):
  - The fund logic in Employee Posting Detail, Payroll GL Transaction (legacy logic), Payroll Posting Report, and Payroll Posting Detail Report has been updated for both checks and direct deposits. Only the funding logic is updated; department and account logic remain unchanged.
    - Fund: Posts according to the employee’s Fund Allocation from Pos and Pay percentage allocation.
    - Department: Applies the Balance Sheet Department (if specified; may be null).
    - Account: Applies the Debit Account from Payroll and HR Preferences > Checks Tab.
Payroll Postings: Add Payroll to Quick Code Show in List:
- Added the Quick Code column to both the Employee Posting Detail Record and the Payroll GL Transaction record. This column is optional, as not all clients use the quick code feature.
  - On the employee quick code record, the value “Payroll” was added to the Show in List Value.
  - This ensures that the quick code option is only displayed on payroll screens when “Payroll” is included in the show in list values.
Payroll Check Printing: Quick Code Bug Resolution:
- Clients using quick codes did not have associated fund validation records, which previously prevented payroll checks from being generated. The process has been updated so that checks can now be generated even if there is no fund validation line, as long as the client is using quick codes.
Payroll Posting: Quick Code Validation:
- Overview:
  - Quick Codes in Payroll and HR Preferences (Fund Allocation > "Use Quick Codes in Employee Postings") let you streamline and standardize allocation for employee postings. This section explains how the system validates and assigns Quick Codes based on your configuration.
    - When Quick Code Logic is Skipped:
      - If the "Use Quick Codes in Employee Postings" setting is set to None/Do not assign quick code or if all three radio buttons are unselected, the system will bypass the Quick Code logic.
    - Assigning Quick Codes for Exact Matches:
      If "Assign Quick Codes only for Exact Match" is enabled:
      
      The system searches all Quick Codes tagged as “Show in Payroll.”
      
      It attempts to find a Quick Code that exactly matches all segments in the allocation (e.g., fund, department, account, project, project task, program, grant, custom segments, etc.).
      
      If an exact match is found: That Quick Code is assigned to the employee posting detail transaction line.
      
      If no match is found: The Quick Code field remains blank on that transaction line.
    - Quick Code Mandatory Validation:
      For clients who require strict Quick Code assignment:
      
      In the Payroll and HR Preferences, set the “Mandatory and Block” option (Payroll Batch Entity) to enforce this rule.
      When this setting is enabled:
      - During creation of an Employee Posting Detail record, if the GL string does not match any Quick Code, the record is still created, but the Quick Code field will be blank for these lines.
      - If any lines have a blank Quick Code field, the system will display a Processing Error Message—specifically, "Unmatched Quick Code"—on the related Payroll Item.
      Performance Considerations:
      Please be aware of potential performance impacts, particularly with higher volumes:It is recommended to evaluate system performance under your organization’s expected workload.
Multi - Entity EFT File Management for Direct Deposits:
For clients managing multiple entities, direct deposit files were previously stored in a single folder, which means each entity does not have exclusive access to its own EFT files. To address this, a unique folder path for direct deposit files can now be applied to each entity.
Enhancement Added:
- EFT File Folder Determination for Direct Deposit Generation:
  - When generating a direct deposit, the system now:
    - Identifies the specific entity from the related pay cycle.
    - Retrieves and applies payroll and HR preferences for that entity.
    - Uses the 'Direct Deposit' tab to determine the EFT File Folder ID (Field ID: custpage_ns4g_eftfile) for the entity and saves the EFT file in that specific folder.
  - File Access Link in Payroll Batch:
    - For each payroll batch, the system now:
      
      Displays a link to the associated EFT file in the File Cabinet.
      
      This link enables users to download the EFT file directly or view its folder location within the File Cabinet.
Weekly Pay Cycles : Pay Period Sequence 4 and 5:
- The Calculate Payroll script has been updated to support Weekly Agencies with Pay Period Sequences of 4 and 5.
- Calculations have been enhanced specifically for the "Every Pay Period" frequency, which now includes pay periods with sequence numbers 4 and 5. Therefore, if a pay code or hour code is set to "Every Pay Period," it will be processed and calculated in pay periods with sequence numbers 1, 2, 3, 4, or 5, unless overridden by other logic.
- The "Specify Pay Period" option now allows selection of pay periods with sequence numbers 4 or 5 and will execute the code if these periods are assigned.
- The "Skip Pay Period" option will now identify pay periods with sequence numbers 4 or 5 and skip executing the code if these periods are assigned.
- Payroll Frequency Group logic is now enabled for Pay Period Sequences 4 and 5, if assigned.
- Codes with a Pay Frequency of "1st Pay Period Only" will continue not to run for sequences 4 or 5, and will not generate errors.
- Codes with a Pay Frequency of "2nd Pay Period Only" will also continue not to run for sequences 4 or 5, and will not generate errors.
- Codes with a Pay Frequency of "Skip 3rd Pay Period" should still not execute for sequences 4 or 5, and will not produce errors.
Ohio State Employee Tax Calculation:
- The Ohio state tax calculation has been updated to reflect the 2025 rate changes. A flat rate calculation has also been added. Any amounts allocated to the flat tax pay bucket will now be automatically separated by the system and taxed at the Ohio flat rate, rather than using the state bracket table. Pay and Hour codes designated for flat tax calculation should contribute to both the State Taxable Wages pay bucket and the Flat State Taxable Wages pay bucket. The Ohio State Taxable Wages pay bucket should not be added as the system will dynamically populate this pay bucket based on the employee tax state defined on their profile.
New Mexico State Income Tax Calculation:
- Setup:
  - To setup the applicable filing statuses for the State of New Mexico, navigate to the 'State Filing Status' section.
    - Edit the following statuses and assign them to New Mexico.
      - Single
      - Head of Household
      - Married
  - To enable the income tax calculation for an employee.
    - Navigate to the 'Taxes' tab, then 'Federal & State', and finally, the 'State Tax Section': Set the State Tax Pay code defined for your agency where the calculation rule is set with State Tax Deduction.
      - State: Assign ‘New Mexico’ as the state.
      - State Filing Status: Enter the filing status as per the employee’s form.
      - State Dependents/Allowances: Enter the number of allowances as per the employee’s form.
      - State Extra Withholding: If applicable, enter the additional withholding amount provided by the employee as per the employee’s form.
  - Calculation Notes:
    - The employee's wages will be annualized, and the tax rate allowance values will use annual figures. The final tax amount is then divided by the annual number of pay periods to determine the per-period tax amount.
    - For further guidance and detailed calculation information, refer to the official guide provided by the State of New Mexico: https://revenue.nebraska.gov/sites/default/files/doc/business/Cir_En_2024/2025cir_en_whole.pdf
Payroll History and Accumulator Tracking:
- On the Employee Payroll Totals Record:
  - Added the “internal id” for both employees pay bucket and hour bucket totals records. This allows users to view and access these records, as well as see when they were last modified, without needing to enter edit mode. This enhancement is particularly useful for troubleshooting, such as verifying if the "Calculate Employee Historical" function is functioning correctly, all while minimizing the risk of unintended changes.
  - Included System Notes on the Employee Pay Bucket Totals and Employee Hour Bucket Totals records to support auditing.

Various Fixes and Performance Improvements