Standard Internal Controls

The following internal controls don't require any setup after your NetSuite account is operational.

• Accounts Receivable

  Outstanding invoices are aged and added to an A/R aging report in real time.

• Financial Close

  • General ledger accounts automatically roll up into financial statement line items.

  • NetSuite performs financial statement consolidation in real-time.

  • The general ledger is automatically configured to include all accounts with balances.

  • All transactions automatically roll up into the general ledger in real-time.

  • Transactions can't be posted to closed periods in NetSuite.

  • Out of balance transactions are automatically rejected.

  • Transactions that reference a closed period are automatically rejected.

  • Transactions that contain an invalid or inactive GL segment, for example, account or cost center, are automatically rejected.

  • CTA (cumulative translation adjustments) are automatically calculated in NetSuite.

  • FX (currency translation) related adjustments are automatically calculated in NetSuite.

  • Only selected users have access to open and close the GL accounting period in NetSuite. After a GL period is closed, NetSuite subsequently doesn't allow posting of any GL-impacting entries to a closed period.

  • Allocation weight is dynamically calculated when an allocation journal is generated, based on the current statistical account balance.

  • Elimination journal entries are automatically generated based on intercompany transactions.

  • Password strength for access to NetSuite accounts is required to comply with password policy.

  • Calculation is automatic for a reversing journal entry that voids checks and transactions on days or periods different from the original transaction date.

  • Journal entries require approval in line with Journal Entry Approval Policy prior to posting to the general ledger.

  • Transactions posted outside of a posting period can be prevented or can initiate a warning.

  • Limitations can be set on the individuals who can impact the account listed on an item record.

  • A gapless numbering sequence is applied to all GL-posting transactions.

• Financial Reporting

  • Financial statements are automatically generated for each separate entity in NetSuite.

  • Financial reports for each entity are automatically prepared in their local currency and are converted in real-time into headquarters currency for consolidation purposes.

• Fixed Assets

  • NetSuite automatically calculates depreciation expense.

  • The Fixed Asset Module automatically calculates and posts the depreciation expense to the asset record and to the related journal entries to the General Ledger.

• Inventory

  • NetSuite values inventory at standard cost.

  • Inventory transactions created and edited in closed periods can be disallowed.

• IT General Controls

  • You must have a minimum password length to comply with the password policy.

  • You must update your passwords regularly.

  • NetSuite automatically captures system notes when records are created, and they can't be edited by any user.

  • When records are edited, NetSuite captures system notes, which can't be edited by any user.

  • NetSuite automatically captures system notes when custom fields are imported or exported.

• Order to Cash

  • Items purchased in a sales order for a customer are automatically reflected in the invoice and are automatically sent to the customer by email when you click the Save & Email button on the Next Bill tab. The order status of the sales order is automatically changed to Partially Fulfilled (several invoices or installment) or Billed (single invoice).

  • For orders on an installment basis, the billing schedule in the body of a sales order for a customer is automatically populated in NetSuite, which you can view on the History tab of the customer record. This tab indicates scheduled billing dates and amounts for each date.

  • NetSuite creates an entry automatically when you invoice a customer.

  • You can't create a customer in NetSuite without a credit limit.

  • NetSuite creates invoices only after an order has been shipped.

  • NetSuite restricts changes made to item quantity, pricing, and shipping income per sales order during the invoicing process.

  • NetSuite books an entry to debit Accounts Receivable and to credit Revenue upon invoice creation.

  • If a customer exceeds their credit limit, NetSuite puts the order on hold or displays a warning message. An increase in the credit limit is generated and approved by the CFO.

  • Orders that are entered into NetSuite, but not yet billed, can be included in customer credit limit calculations.

  • You can set up standard grace periods for overdue invoices prior to placing a customer on hold according to their customer credit policy.

  • You can't edit a sales order after it's been approved.

  • After the A/R period is closed, you can't change the revenue recognition schedule for a transaction in NetSuite.

• Procure to Pay

  • You can limit records and transactions by department of the person entering or editing them.

  • You can also limit records and transactions by class of the person entering or editing them.

  • You can limit records and transactions by location of the person entering or editing them.

• Revenue

  NetSuite doesn't allow revenue recognition greater than 100% of the total amount of the project.

• Time Entry

  • Time entry requires supervisor approval.

  • Employees can't enter more than a certain number of hours per week, as per the HCM policy.

  • Employees can't enter fewer or more than a certain number of hours per day, as per the HCM policy.

General Notices