NetSuite helps you master cash flow management!

NetSuite is a powerful tool to help improve a company's cash flow. Receiving invoices, sending payments, managing deposits, and closing the books are some of the means to help businesses better manage cash flow.

The following operational instructions will help you understand and better perform some common cash management tasks in NetSuite, thereby saving you time in the process.

Issuing checks is a core and often tedious task in any finance department. NetSuite allows you to write, void, and print checks directly within the system. Using NetSuite's standard accounts payable process, you can generate checks to pay vendors, reimburse employees, and refund customers. You can also create checks as separate transactions to record cash transactions, record debit card purchases, or manage petty cash. When you save a check transaction, NetSuite debits the specified expense, other current assets, or inventory accounts in the transaction and credits the selected bank account.

Issuing Checks. To issue a check, navigate to Finance, Banking, and select Issue Checks. In the main information section, select the payee. The subsidiary and address fields are automatically filled in based on the payee. Then select the location associated with the transaction. In the account field, choose the bank account from which to draw funds. You can only select one bank account from the chosen subsidiary. The bank account balance appears, and NetSuite automatically fills in the next check number in the check register. If necessary, you can change this number.

Voiding Checks. To stop payment, you must cancel the check. On the check record, click Void. You will be guided to the Void Journal page, and NetSuite will create journal entries to reverse the transaction. The Void field displays the transaction number of the voided check.

Add a note to explain the reason for canceling the check, then click Save. The voided check reverses its general ledger impact through the void journal entry. The voided check is retained in the system to maintain an audit trail.

Printing Checks. Checks written using the "Write Check" transaction in NetSuite or through the standard accounts payable process can be printed at the time of creation by clicking "Save and Print." You can also queue checks for later printing, or print all checks from one account at a time and review the generated PDF before sending it to the printer. NetSuite automatically tracks and increments the check number for each check account registered.

Regular bank deposits are crucial for managing cash flow. In NetSuite, create deposits to record funds deposited into your bank account. When payments are actually deposited into the bank, use deposits to transfer funds from the undeposited funds account to the general ledger account. This helps you keep the general ledger and bank balance synchronized.

You can also deposit funds that are not related to transaction payments. If you receive cash back from a deposit transaction, record the funds on NetSuite's deposit slip.

Making Deposits. To make a deposit, navigate to Finance, Banking, and select Make Deposits. Choose the bank account receiving the funds. NetSuite automatically fills in the subsidiary, currency, and exchange rate. The amount field automatically calculates the total deposit amount of the transactions selected on the Deposits tab. Then, confirm the date and posting period and add a memo.

On the Deposits subtab, add the details of the Payments sublist, the Deposits sublist, and the Cash Back sublist to the deposit. The Payments sublist shows a list of transactions recorded as undeposited.

Click on the Other Deposits sublist and record any additional funds to be deposited. Enter the name, amount, posting account, payment method, and segment classification. Then add a memo. Click on the Cash Back sublist and enter the amount of cash back you received from the deposit. Enter the cash amount received, account, classification, and memo. Click Save after completion.

Transferring funds. To transfer funds between accounts, navigate to Finance, Banking, and select Transfer Funds. In the From Account field, select the source account from which to transfer funds. NetSuite automatically fills in the subsidiary and currency fields with information from the selected account and displays the account balance. In the To Account field, select the account to which you want to transfer funds. You can only transfer funds to bank accounts within the same subsidiary; the account balance, currency, and exchange rate will be displayed, and then enter the amount to be transferred.

For accounts with different currencies, NetSuite automatically calculates the transfer amount based on the exchange rate. Confirm the date and posting period and add a memo. You can also classify the transfer by selecting "Department," "Location," and "Category" segment values. Click Save after completion.

In NetSuite, you can add credit cards to the chart of accounts, allowing you to enter credit card expenses, pay credit card bills, and reconcile credit card statements.

Entering Credit Card Transactions. To enter credit card transactions, navigate to Finance, Banking, and select Use Credit Card. Choose the transaction type: select Expense to record purchases or select Credit to record credits to the account. Next, select the vendor. NetSuite automatically fills in the subsidiary and currency fields based on the selected vendor. If multiple subsidiaries share a vendor, you can choose any subsidiary.

Then select the credit card account you used for payment. Confirm the date, posting period, and add a memo. In the Reference Number field, enter the transaction number from the credit card transaction (if applicable). Add expenses and credits on the Expenses and Items tabs. Click on the Items sublist to add items from the master file of items. You can also add general ledger expenses on the Expenses tab. NetSuite updates the total expenses as you add or edit items. If you select Credit, the credit is displayed as a positive number.

To ensure the accuracy of your finances, you should regularly reconcile NetSuite bank and credit card statements with the bank and credit card journals. Reconciliation is also key to optimizing other NetSuite banking functions, including checks, deposits, transfers, and credit cards. You can perform bank and credit card reconciliation manually or using automated NetSuite tools.

Automatic Reconciliation. To reconcile automatically, use the Smart Transaction Matching and Reconciliation Rules (ITMRR) feature. ITMRR automatically matches transactions in imported bank statements with existing general ledger transactions in NetSuite based on the reconciliation rules you define. Search for Smart Transaction Matching on SuiteAnswers for instructions on setting up ITMRR.

Manual Reconciliation. When you cannot obtain transaction files from the bank or have not set up automatic reconciliation, use manual reconciliation. To manually reconcile bank or credit card statements, navigate to Finance, Banking, and select Match Bank Data. Select the bank or credit account to reconcile. You can only select accounts that have opted to use Match Bank Data and Reconcile Account Statements options. You can reconcile cleared checks and credit card registrations by touching a button on the "Match Bank Data" page. If there are multiple transactions to reconcile, you can filter by date or transaction type. After completing the reconciliation, save and print the reconciliation report for the reporting period.