ANS-0936 · ACCOUNTING & FINANCIAL CONFIGURATION
How to Use Bank or AR Accounts on NetSuite Expense Lines?
NetSuite offers direct "Write Check" functionality and advanced customization options like Custom GL Line plug-ins and Custom Transaction Types to manage specific GL impacts.
Short answer
To use Bank or AR accounts on expense lines in NetSuite, consider leveraging the "Write Check" functionality, which allows debits to various accounts. For more complex GL impacts and custom accounting practices, NetSuite's 2015.1 release introduced Enhanced General Ledger Customization, including Custom GL Line plug-ins and Custom Transaction Types, offering greater flexibility.
Scenario
Users often seek to directly associate Bank or Accounts Receivable (AR) accounts with expense lines within NetSuite transactions. This requirement typically arises when standard expense entry processes do not provide the desired flexibility for specific accounting treatments or direct debits to these account types.
Solution
The following approaches can be considered for managing Bank or AR accounts on expense lines:
Utilize Write Check Functionality
The "Write Check" functionality in NetSuite allows users to debit various accounts, including Bank or AR accounts, and facilitates check printing. This provides a direct method for recording payments or transfers from these accounts.
Leverage Enhanced General Ledger Customization (NetSuite 2015.1 and later)
NetSuite Version 2015 Release 1 introduced tools for enhanced flexibility in the general ledger (GL), allowing financial accountants to define the GL impact of transactions, particularly for unique accounting practices or tax jurisdictions.
- Custom GL Line Plug-in: This feature leverages SuiteScript and allows users to perform additional GL postings on scriptable transactions. The GL Impact page will automatically reflect the transaction's impact based on the proper accounting treatment, reducing manual effort.
- Custom Transaction Types: Financial accountants can create custom transaction types that are more specific and contextual than generic journal entries. For instance, instead of a standard journal, a custom type (e.g., vendor bill accrual, employee expense accrual, etc.) can be created for easier review and analysis. This allows tailoring the GL to specific business needs for improved insights.
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