Tracking Till Money Movement through NetSuite ERP records
All till transactions that involve money received or paid out by a NetSuite Point of Sale (NSPOS) register post to your NetSuite ERP account in the next synchronization. The accounts assigned to your corporate Chart of Accounts to which these transactions post are, by default, global accounts. Accounts are not usually specific to individual store locations.
Using the set of custom records set up for your NetSuite ERP account, you can configure which ledger accounts will be credited and debited for each transaction. Payment Methods are useful for determining the target accounts.
The integration with NetSuite ERP provides methods for assigning the accounts to which your money movements will post. This integration updates your accounts through synchronizations from the register – using your replication server – to your NetSuite ERP implementation. Consequently, you have the ability to track every money movement that occurred in every register workstation, including cash drawer disbursements for services like window cleaning.
NSPOS includes functions that you can use to keep track of money moved from one point in your operations to another. For example, you can track the movement of money between registers, the back office, and your bank. You can also track:
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Money added to a register cash drawer for use as change
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Excess money removed from a cash drawer and placed in a safe
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Money moved from a safe and deposited in a bank
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Discrepancies between expected (book value) and physical end of day drawer counts
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Money used for small expenses paid out of a cash drawer, such a buying stamps, cleaning products or services.
Note that the defaults set up for your implementation might not assign tracked transactions to the General Ledger accounts desired for your auditing. You have the option to assign transactions to other accounts.
For NSPOS, NetSuite ERP uses RA-Money Management Action records to specify the accounts to which money movements are assigned. Each record determines the accounts to debit and credit based on the type of action taken. You can create and modify these records to meet your requirements.
When the records are in place and synchronized with your registers, the records create the General Ledger entries you will use to manage accounting duties and drill down into detailed snapshots of your cash-flow operations.
For new NSPOS implementations – The NSPOS bundle does not include a default Money Management setup. You must set up RA-Money Manage Management Action records to process the flow of funds into your bank accounts.
NetSuite Customer Support and Professional Services can assist you with the setup.
Working with RA-Money Management Action records
Use the steps and descriptions in this section to plan for and configure RA-Money Management Action records for use with your NetSuite ERP General Ledger.
1. Create an Accounting Plan
As your first step, you should make a general accounting plan that lists the money-movement types you want to track. The plan should include where to record these movements in your NetSuite ERP General Ledger.
Be sure to work with your Accounting teams when creating a plan.
Reviewing a blank RA-Money Management Action record from your NetSuite ERP account will help you understand what values you will need to input.
To view a new RA-Money Management Action record:
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Log into NetSuite as an administrator.
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Go to Customization > Lists, Records, & Fields > Record Types.
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Locate the RA-Money Management Action row.
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Click List.
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Click New RA-Money Management Action.
Note:Click Edit or View on an existing record to review what is in place now.
Two lists to review:
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Type – The type corresponds to the NSPOS button used by the cashier to perform the task.
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Reason – This field can hold any value you want to describe why an action was taken.
You might not have any reasons in the list now. Accounting reasons are created using the RA-Funds Rec/Disb Reason record. See RA-Funds Rec/Disb Reason Codes.
To determine what values to select for each accounting scenario, you can create a five-column table to use as a template. Complete the table using the following questions:
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What money movement action do I want to track in NSPOS?
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What are the reasons the action would be performed?
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Which account should be debited from the money disbursed or received?
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Which account should be credited from the money disbursed or received?
If the accounts you want to use do not exist in your Chart of Accounts, create them before continuing to the next section.
Sometimes you will have matching records representing a funds disbursement for some expense and then a funds receipt to track any change returned.
You only need to create Reason Codes for Funds Disbursement and Funds Receipt types.
Example money movement record plan
|
Cashier Action Type |
Reason Code |
Two-character Code for NSPOS * |
Debit Account |
Credit Account |
|
Drawer Drop |
N/A |
DD (Drawer Drop) |
1092 – Cash On Hand |
1095 – Cash in Tills |
|
Funds Disbursement |
Supplies |
DS (Disburse for Supplies) |
6230 – Supplies Expense |
1092 – Cash On Hand |
|
Funds Disbursement |
Miscellaneous |
DM (Disburse for Miscellaneous) |
6130 – Miscellaneous Expense |
1092 – Cash On Hand |
|
Funds Receipt |
Supplies |
RS (Receipt for Supplies) |
1092 – Cash On Hand |
6230 – Supplies Expense |
|
Funds Receipt |
Miscellaneous |
RM (Receipt for Miscellaneous) |
1092 – Cash On Hand |
6130 – Miscellaneous Expense |
* This code can be any two alphanumeric characters. Each code must be unique, meaning do not duplicate a code. To keep them manageable, codes should reflect the action being performed, such as DD for Drawer Drop. You will enter these codes when setting up your RA-Funds Rec/Disb Reason records. NSPOS uses the codes for record processing.
2. Use your Accounting Plan to set up the NetSuite ERP records
After mapping the accounting scenarios you want to set up into a table, you are ready to create the NetSuite ERP action records. You will use three record types to implement your plan:
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RA-Funds Rec/Disb Reason Codes provide the codes that describe why an action at the register was taken.
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RA-Money Management Actions determine how actions at the POS are recorded in the General Ledger/Journal Entry.
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RA-Payment Method Account Flows (optional) records track money flow in the General Ledger as funds move between holding accounts and deposit accounts. The record is most applicable for tracking cash movement.
RA-Funds Rec/Disb Reason Codes
Before setting up your Money Management Action records, prepare your Reason Codes so that they are ready to select. Reason Codes describe why you have performed a specific action in NSPOS.
For example, you can set up a disbursement code describing payment for cleaning windows in your stores. The action by itself – a drawer disbursement – does not provide visibility into why the disbursement took place. A Reason Code assigned to the action provides the needed information.
You do not need Reason Codes for actions like sales transactions because it is clear that one or more items were sold.
These RA-Funds Rec/Disb Reason Codes are different from the codes used with returns or canceling a transaction.
You will create a separate record for each unique Reason Code in your plan. If a code such as “Supplies” is used more than one time in your accounting plan, you only need to create one record for that code. A single code can be assigned to multiple Money Management Action records.
To set up RA-Funds Rec/Disb Reason records:
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Log into NetSuite as an administrator.
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Go to Customization > Lists, Records, & Fields > Record Types.
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Locate the RA-Funds Rec/Disb Reason row.
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Click List.
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Review the list of existing codes.
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Click New RA-Funds Rec/Disb Reason.
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For Name, enter the text to appear on the cashier’s POS Reason selection list and in your General Ledger records.
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For Type, select Receipt or Disbursement, depending on the Action Type in your planning table.
If your plan uses the same reason code for both receipts and disbursements, create two separate records, one with Receipt selected and one with Disbursement selected. To help track which reason code is associated with which action, you can append this information to the Name field.
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For the RAPOS Code, enter the two-character Code for NSPOS from your plan.
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For Account, select the Debit Account or Credit Account from your plan that corresponds to the Receipt or Disbursement Type selected.
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Click Save.
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Repeat the steps for all Reason Codes and Debit or Credit Accounts in your plan.
RA-Money Management Actions
After you set up your Reason Codes, you will create a RA-Money Management Action record for each Cashier Action Type in your plan.
Money management actions describe how till management actions done at the register are logged to your General Ledger. The records determine the accounts to debit or credit based on the type of action and – using a Reason Code – why the action is performed.
Common uses are tracking drawer counts, drops and loans. You can also track disbursements such as money paid to third parties for cleaning services, charity contributions, or receipt paper purchases. The key is deciding what actions should be specifically called-out in your General Ledger.
To set up RA-Money Management Action records:
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Log into NetSuite as an administrator.
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Go to Customization > Lists, Records, & Fields > Record Types.
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Locate the RA-Money Management Action row.
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Click List.
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Review the list of existing Action records.
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Click New RA-Money Management Action.
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Leave the Custom Form at Standard RA-Money Management Action Form.
Unless you have changes in place to customize the form. Then you will select the applicable custom form.
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For Type, select Funds Receipt or Funds Disbursement, depending on the Action Type in your planning table.
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To apply the accounting action to a specific store, select it in the Location field. Leave empty to apply the action to all Locations.
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For Reason, Debit Account and Credit Account, select the values from your accounting plan.
Note:A Debit or Credit Account field might automatically list the account information you entered in a Reason Code record. Change this as needed for the account you are setting up.
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Click Save.
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Repeat the steps for all Action Types in your plan.
RA-Payment Method Account Flows
After your RA-Money Management Action records are set up, you have the option to create an RA-Payment Method Account Flow record for each payment method. This optional record tracks the flow of money between different accounts.
Some retailers use NetSuite ERP as a “back office” processing system only, and use other accounting applications to manage the flow of money. Setting up RA- Payment Method Account Flow records is not a requirement if they are not applicable to your processes.
Three account types are available for each flow record and associated method:
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Un-Deposited Account – The account used to hold cash or other tender funds prior to depositing those funds in the bank. Because the payment gateway automatically deposits credit and debit card payments, this account is not used for credit or debit card tenders.
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Depository Account – The account used to deposit and withdraw funds received.
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Over/Short Account – Income statement account to hold overages or shortages. These variances are the differences between physical amounts received and expected amounts received.
Determining the account types for tracking your flow
Depending on how you track the flow of money now (or want to begin tracking it), you can select all account types for one record, but only select one or two for others. The choices vary based on your business type, accounting rules and any requirements set by your country or other regulatory jurisdiction.
Cash is usually held prior to making a bank deposit, so most cash-flow tracking will include an Un-Deposited (holding) Account. Since payments tendered with credit or debit cards often move directly to Depository Accounts, holding accounts are usually not relevant for those transactions. Depository and Over/Short (variance) Accounts are applicable to both cash and credit/debit cards.
If different locations have different requirements, you can set up separate Account Flow records for those locations. Other locations will default to the Account Flow records that do not specify a location.
Be sure to review the options with your Accounting or Finance Departments before beginning the setup.
To set up RA-Payment Method Account Flow records:
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Log into NetSuite as an administrator.
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Go to Customization > Lists, Records, & Fields > Record Types.
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Locate the RA-Payment Method Account Flow row.
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Click List.
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Review the list of existing Account Flow records to verify that the flow is not yet in place or only needs editing.
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Click New RA-Payment Method Account Flow.
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To apply the Account Flow to a specific store, select it in the Location field. Leave clear to default the payment-method flow to all non-specified Locations.
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For the Payment Method, select Cash (or other method if not for cash flow).
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For the three Account (type) fields, select the accounts identified by your Accounting or Finance Departments.
If you will not use one of the account types, leave the list at the default.
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Click Save.
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Repeat the steps for other Payment Methods as desired.
After completing the record setups, allow time for the updates to synchronize with your NSPOS registers. You can confirm if the updates have synced by viewing the Reason Codes displayed on the register after tapping an associated function. For example, tap Other Functions > Funds Receipt and view the Reasons offered.
NetSuite ERP will now automatically update your General Ledger entries from NSPOS transactions using the records you created.