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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