Getting started with Netsuite:
Netsuite is a complete scalable cloud ERP that targets any size business and helps automate their front end as well as backend process including financial management, revenue management, order management, billing, and inventory management. Netsuite also provides ERP management functionality to support finance, HR, operations & service departments.
NetSuite Account Period Management:
An accounting period is the span of time covered by a set of financial statements. This period defines the time range over which business transactions are accumulated into financial statements.
The accounting period allows the investors to compare the financial information with successive/preceding periods. These accounting periods allows controlling the validation of accounting transactions whose operation dates are within the time-frame of this period.
Oracle NetSuite GL Impact:
In accounting, a general ledger(GL) is a record of all past transactions of a company, organized by accounts. General Ledger (G) accounts contain all debit and credit transactions affecting them. In accounting software, a general ledger sort of all transaction information through the accounts. Also, it is the primary source for generating the company’s trial balance and financial statements.
The transactions are related to various accounting elements, including assets, liabilities, equity, revenue, expenses, gain, and loss.
NetSuite Account Period Management:
A journal entry is a record of the business transaction in the accounting books of business. It is the first step in the accounting cycle.
A journal details all financial transactions of a business and makes a note of the accounts that are affected. It used in a double-entry accounting system, journal entries require both a benefit and a credit to complete each entry.
NetSuite Reverse Journal Entry:
Reversing entries or reversing journal entries are journal entries made at the beginning of an accounting period to reverse or cancel out adjusting journal entries made at the end of the previous accounting period. It is commonly used in situations when either revenue or expenses were accrued in the preceding period and you don’t want the accruals to show up in the financials for another period.
NetSuite GL Report:
The general ledger is a master of all accounts of your business and is primarily used for monitoring the financial activity of your business. The General ledger report contains the account summaries. It is mainly used by accountants and auditors for investigating accounts.
The general ledger is a comprehensive summary of the different parts of your accounting. It’s the source of all your other financial reports, such as your profit and loss and balance sheet.
NetSuite Unrealized Gain or Loss:
Unrealized profits/losses refer to profits or losses that have occurred on paper, but the relevant transactions have not been completed. It also called paper profit/losses, because it is recorded on paper but has not actually been realized.
Unrealized income/losses are recorded in an account called accumulated other comprehensive income, which is found in the owner’s equity section of the balance sheet.
NetSuite Intercompany Elimination:
Intercompany Elimination is the process that a parent company goes through in order to remove transactions between subsidiary companies in a group. Parent companies complete intercompany eliminations when they’re preparing consolidated financial statements.
Intercompany Elimination ensures that there are only third party transactions presented in consolidated financial statements.
The income statement is one of the company’s core financial statements that shows their profit and loss over a period of time.
Net income = (Total Revenue + Gains) – ( Total Expenses + Losses)
Total revenue is the sum of both operating and non-operating revenues while total expenses include those incurred by primary and secondary activities.
The Income statement focuses on four key items- Revenue, expenses. gain and losses.
Balance sheet Report:
A balance sheet is the financial statement of a company which includes assets. liabilities, equity capital, total debt, etc. at a point in time. A balance sheet is more like a snapshot of the financial position of a company at a specified time, usually calculated after every quarter, six months, or one year.
The Balance sheet is one of the three fundamental financial statements and is key to both financial modeling and accounting.
Comparative Income Statement:
A comparative income statement presents the result of multiple accounting periods in separate columns. The intent of the format is to allow the users to compare the result of multiple historical periods, and make investment decisions.
A comparative income statement combines information from several income statements as columns in a single statement. It helps you identify financial trends and measure performance over time.
Cash Flow Statement:
The statement of cash flows ( also referred to as the ash flow statement) is one of the three key financial statements that report the cash generated and spent during a specific period of time. The cash flow statement (CFS) measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
The CFS allows investors to understand how a company’s operations are running, where its money is coming from, and how money is being spent.
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Getting Started with Oracle ARCS
Account reconciliation is the process of comparing internal financial records against monthly statements from external sources—such as a bank, credit card company, or other financial institution—to make sure they match up.
A bank reconciliation is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is to ascertain the differences between the two, and to book changes to the accounting records as appropriate.
Unapplied cash/receipts is a remittance received from a customer which cannot be identified or associated with a specific outstanding invoice that is due.
The reconciliation of accounts receivable is the process of matching the detailed amounts of unpaid customer billings to the accounts receivable total stated in the general ledger. This matching process is important because it proves that the general ledger figure for receivables is justified.
Account Receivable Reconciliation:
The reconciliation of accounts is receivable is the process of matching the detailed amounts of unpaid customer billings to the accounts receivable total stated in the general ledger. It is the matching and validating of balance in the general ledger (GL) to external and internal sources or other independent calculations to ensure that month-ends and year-ends are closed accurately.
If a monthly reconciliation is done, the proper documentation will be available if an audit is performed, and any differences that exist between the two modules can be caught and corrected before the period is closed.
Invoice factoring is a financial transaction in which a business sells its accounts receivables (invoices) at a discount to an external financing company, known as a factor or factoring company.
Factoring companies typically advance 70-90 percent of the invoice value upfront. The remaining balance is remitted when the invoice is paid minus a fee.
Short Term Investment Reconciliation:
A Short-term investment is an investment that will mature to cash within a one-year time period and is considered liquid. When someone invests in short-term stock and bounds, the thinking is that these assets can be cashed in quickly.
Money market accounts are ideal places for corporation and investors to park their cash for a short time while they wait for an opportunity to deploy it.
Unidentified receipts are normally a temporary holding (suspense) account in which funds received but not yet identified as to which account receivable the amount should be properly assigned to are posted.
Unclaimed funds are credited to an ‘unidentified receipts’ account, where they will remain until claimed.
Cash Clearing Account Reconciliation:
Clearing accounts are used on a temporary basis to record transactions until there comes a time to post them to a permanent account. Clearing accounts are more simple accounts where you easily enter cash received as a clearing amount until the money is acknowledged, verified, and then deposited in your bank.
Remit bills receivable to your remittance bank or other financial institution to initiate the collection process from your customers. Entity remit bills receivable to your bank, and the bank manages the collection process.
On the bill receivable maturity date, the bank collects payment in full from your customers and transfers the funds directly to your bank account, less any fees or other charges.
Auto invoice is a powerful tool to import and validate transactions data from other financial system and create invoices, debit memos, credit memos & On-account credits in Oracle receivables.
Auto Invoice Clearing is a suspense account that is created if the revenue amounts do not match the price x quantity amounts.
The difference between both is transferred to this account. Which is justified/validated and transferred to respective accounts on reconciliation.
Notes Receivables Reconciliation:
Notes receivable is a balance sheet item, that records the value of promissory notes that a business is owed and should receive payments for. A written promissory note gave the holder, or bearer, the right to receive the amount outlined in the legal agreement. Promissory notes are a written promise to pay cash to another party on or before a specified future date.
Short Term Debts Reconciliation:
Operating debt arising from the primary activities that are required to run a business, such as accounts payable, and is expected to be resolved within 12 months, or within the current operating cycle of its accrual. This is known as Short-Term Debts. Common types of short-term debt include short-term bank loans, wages, lease payments, and income taxes payable.
Intercompany Transactions Matching:
Intercompany reconciliation is when two branches of a parent company reconcile figures as a result of engaging in a transaction. The process often takes place monthly or quarterly and involves various general ledgers of child companies eliminating intercompany transactions.
AP to PO Reconciliation:
Reconciling purchase orders with purchase orders ensure everything is accurate between what the vendor charges you and what you received. Reconciliation is required matching the line items on the PO to the line items on the invoice.
POS to BANK Reconciliation:
POS reconciliation is the accounting task of comparing two sets of records to see if the figures all match up. It helps ensure that your financial activity is properly recorded and the amounts are all accounted for.
PoS to Cash Card Transaction Matching:
POS reconciliation is an accounting process that proves and documents that the account balance is in agreement. It’s a fundamental account process that ensures that the actual money spent matches the money leaving an account at the end of a fiscal period.
Cash Clearing Matching:
A clearing account is an account that business use to move money from one account to another account when it cannot move the money directly. This account normally has a balance of $0.00 because you always take out the same amount that you put in. It may also be called a wash account.
Transaction matching is a cloud-based reconciliation platform with pre-built configurations and adherence to industry best practices.
Transaction matching is a module within ARCS that inherits the features that facilitate preparation and review of reconciliations.
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