What can you expect from NetSuite ERP in the 2015.1 release?

One of the main benefits of NetSuite is that it is upgraded twice a year, providing new and improved functionality to its customers and ensuring they are always using the most up-to-date technology solutions.
NetSuite is currently rolling out Version 2015 Release 1 to its existing customers, who will be upgraded during the next couple of months. Here we go through some of the expected changes to NetSuite ERP with regards to financials.

Expected changes to NetSuite ERP: Financials

Enhanced General Ledger customisation

NetSuite is really excited about this one – enhanced customisation tools are expected to provide unprecedented flexibility to your general ledger (GL). With custom transaction types, financial accountants will be able to define the GL impact of transactions, especially for industries or tax jurisdictions that follow unique accounting practices.

Customise your GL to account for any type of transaction that fits your business
For more information on NetSuite’s planned improvements to the General Ledger, please click here.

New ‘Request for Quote’ capabilities

In their ongoing commitment to help organisations achieve better spend management, NetSuite is making it easier to find the right vendor at the best value for your company. With new ‘request for quote’ (RFQ) capabilities, buyers will be able to more efficiently manage competitive bidding across multiple vendors.
Whether seeking a vendor to provide direct materials or a supplier for office supplies and outsourced services, users will be able to create and send RFQs to multiple vendors, and then analyse the responses online to obtain the best terms and pricing for purchases on specific items.
Once a vendor is selected for an RFQ item, the system will automatically create purchase contracts using the terms and pricing provided in the RFQ.
(Please note that additional fees may apply for this feature.)


New Request for Quote enables buyers to invite vendors into a bidding process for specific goods and services

Enhanced global vendor management

In Version 2015 Release 1, NetSuite is expected to introduce enhanced global vendor management which will allow you to share vendor records across subsidiaries.
This is particularly useful for integrated global businesses or highly distributed ones with a collection of regional businesses or subsidiaries.Vendors with global operations and multiple subsidiaries can be difficult to manage if you have to manually compile information for each entity and evaluate vendor activity at an aggregated and disaggregated level.
With NetSuite’s new release, vendor records can be shared across subsidiaries. So the next time you need to add a vendor record, you will no longer be limited to mapping the vendor to just one subsidiary.
(Please note that additional fees may apply for this feature.)

Enhanced vendor records are shared across subsidiaries

Easier foreign currency revaluations for multiple subsidiaries

NetSuite 2015.1 plans to make it much easier to perform foreign currency revaluations for multiple subsidiaries at month-end. Accountants will no longer have to perform period close revaluations one subsidiary at a time.
With an easy one-click method that processes foreign currency revaluations for multiple subsidiaries within a hierarchy tree, you will be able to eliminate repetition and save time using fewer steps to revalue foreign currency balances in bulk at month-end.
(Please note that additional fees may apply for this feature.)

Fixed asset management improvements

The Version 2015 Release 1 of the Fixed Assets Management SuiteApp will make it easier for companies to record and report depreciation expense when using a 4-4-5 calendar accounting period, especially for retailers and manufacturers.
Accountants will be able to select a new option in the setup page that will automatically calculate depreciation based on accounting period dates, which is much simpler and faster than calculating depreciation at the end of the month and then performing the extra step to post adjustments to record depreciation following a 4–4–5 calendar.
(Please note that additional fees may apply for this feature.)

Subsidiary return email address on emailed transactions

In NetSuite Version 2015 Release 1, whenever a transaction is emailed (e.g., purchase order emailed to vendor), a new option will be available to insert a subsidiary return email address for emailed forms.
Your customers and partners can reply directly to the subsidiary responsible for the transaction, which will preserve the context of the transaction and minimise confusion
For example, a UK parent company with a US subsidiary can now ensure that any enquiries relating to emailed forms sent from the US will be sent to a local US email address that is more knowledgeable about the transaction.
(Please note that additional fees may apply for this feature.) 

Subsidiary return email addresses make it easier for customers and partners to reach you
 

Allocations for simpler financial close and cut-off

In the new release, accountants will be able to post allocation batches using the new flexible back-dating feature.
For example, if you need to post an expense allocation for the September month-end based on statistical account information that won’t be available until a few days into October, NetSuite allows you to set the posting date to 30th September when running the allocation, or you can select a “next date” option based on the allocation schedule.
So rather than posting the allocation with an October date and then having to post another entry to adjust for the cut-off period, accountants can save time and effort with just one entry using the proper posting date.
(Please note that additional fees may apply for this feature.)

Better accrued expense accounting for non-inventory items at month-end

Estimating and recording accrued expenses at month-end can eat up significant accounting resources, especially when deadlines are tight and there is a large volume of transactions consisting of non-inventory items (i.e., special orders), service items or charges.
In NetSuite Version 2015 Release 1, accountants can easily post accruals for non-inventory items, service items or charges received but not yet billed. They will no longer have to spend time tracking down co-workers to confirm receipt to post a journal entry to accrued expenses. Instead, they will be able to see accruals in real time once non-inventory goods and services have been received.

New payment holds for better vendor bill resolution

In the 2015.1 release, accountants will have a much simpler way to make sure they don’t pay vendor bills that are in question or in dispute.
A new checkbox will be available on vendor bills when the status is either “pending approval” or “open.” Even if the bill has been approved through the approval hierarchy, if the checkbox is checked, the system will not allow payments to be made against the vendor bill; this is a more effective control than manually trying to manage vendor payments.
As a result, applied payment holds will prevent funds from inadvertently leaving the company and placing you in a difficult position to try and reclaim lost money.

New intercompany accounts for cross-subsidiary purchases and sales

In NetSuite Version 2015 Release 1, accountants can start using the new intercompany accounts for recording and posting purchases and sales transactions across subsidiaries.
Rather than using existing P&L accounts where intercompany transactions are buried in detail with all the other activity, new accounts specifically designated as intercompany will be available for tracking, recording and posting information for income, cost of goods sold and expenses separately.
You can spend less time and effort tracking and recording intercompany activity across your subsidiaries and realise better consolidated financial accounting, reporting and analysis.
(Please note that additional fees may apply for this feature.)
If you would like any further information on any of the expected changes to NetSuite ERP during the 2015.1 release, please don’t hesitate to get in touch with one of our experts.
Do you have anything to add? Please leave your comments below.

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