Financials Accelerated Session 6

In this session, you will learn to use the Accounts Receivable and billing functions of NetSuite, including entering and billing Orders, receiving Payments and accessing reports, entering a Budget, and importing a Budget. At the end of this session, you should have a solid understanding of the NetSuite Accounts Receivable functions.

Information may be needed from your Executive Sponsor and Book Keeper for the configurations in this session.

Table of Contents

Entering Sales and Payments

This section describes how to enter Customer transactions (income) and apply Customer payments.

Sales Orders

A Sales Order creates a placeholder for a future cash sale or invoice. For example, a Sales Order can be used to create a donation or a pledge, which can then be converted to a cash transaction once the donation or pledge is made official.

Important: the following describes a typical scenario for entering a pledge or donation that has not been confirmed in writing.

To create a Sales Order, go to:

Transactions > Sales > Enter Sales Orders

Enter the Customer or Customer: Grant. If there is no Grant or Project associated with the customer, the Customer name alone may be selected.
Enter a Transaction Date
Choose a Status
From the Items tab below, choose an Item from the dropdown
- Enter the quantity, description and price as needed.
- Choose a Class, Department, Location and custom segments

Important: The conversion of a Sales Order to a Cash Sale or Invoice depends on the payment method selected on the Billing tab.

On the Billing Tab…
- If the Sales Order will be converted to an Invoice, creating a Receivable
  or
- Choose from the Payment Method dropdown if the Sales Order will be converted to a Cash Sale
- Complete remaining Billing information as available or Save

Billing a Sales Order

To convert a Sales Order to a Cash Sale or Invoice, go to:

Transactions > Sales > Bill Sales Order

Click the Sales Order that needs to be billed
Click the Bill Remaining button
- If a Cash Sale is created, go to the Billing Tab and:
  - Enter the credit card information or, if a credit card is saved to the Customer record, choose the card from the Credit Card Select field
  - Verify the remaining information
  - Save
- If an Invoice is created, go to the Billing Tab and:
  - Verify the information
  - Save

Invoices and Cash Sales

Invoices are transactions with payment terms. They create a Receivable for future payment. Cash Sales assume the payment has already been made. To create an Invoice or Cash Sale, go to:

Transactions > Sales > Create Invoices or Enter Cash Sales

Enter the Customer or Customer: Grant in the Customer field
Enter the transaction date
- The Posting Period will auto-fill with the period based on the transaction date.
Choose the Terms
- These will auto-fill from the Customer record if they are selected on the Financial tab
On the Items tab, choose the Item to be billed and enter the Quantity, Rate, and values from any or all Segments
On the Billing tab, choose an address from the Bill To Select dropdown. If no address is available, click New to create one
Save

Applying Payment to Invoices

When payment for an open Invoice is received, it needs to be applied to the open Invoice. To apply payment to open Invoices, go to:

Transactions > Customers > Accept Customer Payments

Enter the Customer name
The Customer’s open transactions will appear in a list under the Apply menu
Enter an internal reference number (not the check number) in the Payment Number box
Check the box next to the Invoices to which the payment applies
- If it is a partial payment, enter the amount paid in the box furthest to the right on the Invoice row. The invoice will remain open with a balance.
On the Payment Method tab, enter the pertinent information
Save

Accessing Customer-Specific Transactions

You can access all Customer transactions via the Customer record itself. To locate, open and review transactions and other records, open the Customer record and go to:

Sales tab > Transactions

By default, all transactions are listed. The filters below the Transactions tab provide the ability to restrict to certain transactions or status
All transactions can be opened from the Customer record
A summary of Customer activity can be accessed from the Customer Dashboard, accessed by clicking the icon directly above the Customer name, above the Edit, Back and Accept Payment buttons

A/R Reports

Receivables are viewed and managed through a series of standard reports. To view A/R reports, go to:

Reports > Customers/Receivables

A/R Aging
- Change the reporting date
- Select the Aging Options button to review options
A/R Register
- Lists all posting sales and payments by customer
A/R History by Invoice
A/R History by Payment

Budgets

NetSuite provides a basic budget worksheet that provides the ability to run “Budget versus Actual” reports. It is not a budgeting tool with the ability to enter “what if” scenarios. We will enter a budget manually and you will learn how to prepare and import a budget for your staff via Excel.

Entering a Budget

Budgets can be imported into NetSuite or added manually via the Budget form. NetSuite.org recommends entering your first Budget manually, rather than attempting to import it. To enter a budget, go to:

Transactions > Financial > Set Up Budgets

Choose the Fiscal Year
If associated with a specific Customer/Donor, choose that value from the dropdown
Choose Segment values if the budget is associated with the specific Segments
Choose a Department, Class, Location or Custom Segment dimension if desired
Choose the Account Types to enter
Enter amounts with the following options:
- Enter actual amounts in each cel based on the budget developed outside of NetSuite
- Enter a total annual amount in the first month. Check the Apply box to the left of the account name, then click the Distribute button to distribute by 12ths
- Enter a single amount that repeats each month in the first month cel, check the Apply box, then click the Fill button to fill the amount through the remaining months.

Transactions > Financial > Set Up Budgets

Choose the Accounting Period
- Note: if an accounting period is not available, see Session One: Manage Accounting Periods to create one.
Enter the amounts for each period in the respective account field
If an account has equal amounts across all periods, the amount can be auto-filled in one of two ways:
- Distribute - enter the total amount for the year in the first period then check the Apply box for the account and click the Distribute button
- Fill - to fill an amount across all periods, enter the amount for that period then check the Apply box for the account and click the Fill button.

Importing a Budget

Budgets can be prepared in Excel and imported into NetSuite. Using the template provided, enter the information as shown below:

To import the budget, ensure that the file is saved as a CSV and go to:

Transactions > Financial > Setup Budgets > Import

Choose Select
Choose the file to import
Ensure the year, Account and Period fields are mapped

Click Next
Click Save and Run

Budget Tips:

• Use Budget Categories to create differentiation between budgets for which other criteria, such as Constituent, Native Segments, and Custom Segments are identical.
• Use the CSV import functionality in NetSuite to easily import Budgets.
• Use the Copy Budget to copy your budget from the previous year or use last year’s actuals.

Other Transactions

This section introduces other financial transactions and processes used in day-to-day accounting.

Making Deposits

In NetSuite, payments received by cash or check are held in the Undeposited Funds account on the General Ledger. When a deposit is made at the bank, an equal record of the deposit is made in NetSuite. To record a Deposit, go to:

Transactions > Bank > Make Deposits

Choose the Account to which the deposit was made
Enter the deposit Date
Click the Payments tab and check the box for each of the payments deposited
Click the Other Deposit tab to add other monies collected and deposited but not recorded in a transaction
Click the Cash Back tab to record cash that was received during the deposit
Save

Bank Reconciliations

Each bank account is reconciled against monthly statements. To reconcile a bank account, go to:

Transactions > Bank > Reconcile Bank Statement

Choose the Account to be reconciled
Enter the Statement Date
Enter the Ending Balance on the Statement
On the Deposits and Credits tab, check the Deposits and Credits
On the Checks and Payments tab, check the Checks and Payments that cleared
On the New Charges tab, enter any additional charges on the Statements
On the New Deposits tab, enter any New Deposits
To save the Reconciliation and return to it, click the Hold button
- When you return to the Bank Reconciliation screen, the Held Bank Rec will have loaded.

Important: Only one reconciliation can be held at a time. Do not change the account on a held bank reconciliation, or the checkboxes will be cleared.

Click Save when the account is reconciled

For more information about the reconciliation process, search NetSuite Help for “Bank Account Reconciliation and Reporting.”

Journal Entries

Journal Entries can be entered manually or through Import in NetSuite. To enter a Journal Entry manually, go to:

Transactions > Financial > Make Journal Entries

Choose the Date and Posting Period
Enter a Memo

Important: The Memo field in the header section of the Journal Entry is a general memo for the Journal Entry, not for each line.

Enter the Account, Debits and Credits
- The Name column provides the ability to include Customers, Vendors and Employees
  Choose from the Segment values as needed

To import a Journal Entry, go to:

Transactions > Financial > Make Journal Entries > Import

From this screen, you can download the Journal Entry Template

Important: The template does not include your organization’s Chart of Accounts, Entity names, Classes, Departments or Locations. These names must match the exact names in the account.

Files must be saved as Comma Separated Values (CSV), not Excel files
Click the Select button
Choose the file
Match the fields
Run

Session 6 Homework: Prior to the next session:

Create a Sales Order
Bill a Sales Order
Create an Invoice
Apply a Payment to an Invoice
View the A/R Aging report
Enter or Import a Budget
Make a Deposit
Create a Journal Entry

Additional Homework: At this time, follow the steps outlined in Session 4 to begin entering live transactions in NetSuite. You will use both systems concurrently for the next month before closing out of your legacy system and making NetSuite your system of record.

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