In today’s NetSuite guide, we’ll discuss how to perform bank reconciliation in NetSuite.
Step-by-Step Guide to NetSuite Bank Reconciliation
1. Import Bank Transaction
If the business is not currently using the Bank Feeds feature to auto-import bank transactions in NetSuite, bank reconciliation can begin by importing them from a CSV file.
- Navigate to Transactions > Bank > Banking Import History > Upload File. Select Import with a default parser to display the CSV template that the user can use for importing bank data.
- The CSV template includes the required information: Date, Payer/Payee, Transaction ID, Transaction Type, and Amount. Memo is optional.
- To import the completed CSV file, navigate to Transactions > Bank > Banking Import History > Upload File. Click “Choose a file” from the computer.
Select the bank account in the Account field. Click “Import“.
This upload status message will show to track the status. Click the “Track your status” link.
If the import status shows “Failed“, check the reason and update the CSV template.
If the import status shows “Completed“, the upload was successful, and you can proceed with the reconciliation.
2. Match Bank Data
On the NetSuite Match Bank Data page, you can compare bank lines and account transactions imported into NetSuite. Navigate to Transactions > Bank > Match Bank Data.
You can take the following actions:
- Match account transactions.
- Mark as cleared pending submission of all transactions without a matching bank line.
- Excluding imported bank lines.
- Examine the matched and user-approved account transactions.
- Submit transactions for system clearance.
- In the Match Bank Data page, all imported transactions will be automatically matched. The Intelligent Transaction Matching applies reconciliation rules to match imported lines with corresponding transactions.
Select the account to be matched. Review the matched bank transactions in the “Review” tab.
If you need to exclude the matched transactions, click the “Matched” link on the line; a pop-up will offer to undo the matching. Click “Undo Match“.
- In the To Be Matched tab, the user can manually match the Imported Bank Data line with the Account Transactions line.
Click on the checkbox of each line to be matched. Click the “Match” button.
- To clear transactions without matching bank lines, click the checkbox on the account transaction line. Click “Clear“.
- To add bank charges that have not yet been booked in the system, click “Add Charge“.
Enter the required information, such as payee, date, number, memo, amount, account, and dimensions of the entry.
Once done, the entry will show in Account Transactions. Click the checkbox and “Clear“.
- In the Review tab, all matched bank transactions will show. In the Excluded tab, this shows bank-imported lines excluded from matching.
- Once all matched transactions are reviewed, click “Submit“.
- Click the “Reconcile Account Statement” to route to the reconciliation page.
3. Reconcile Account Statement
- In the NetSuite Reconcile Account Statement page, select the Account and Statement End Date. In the Ending Statement Balance field, enter the balance from the bank statement.
The Summary area will show how different it is from the reconciliation. The goal is to have zero difference, but the reconciliation can still be submitted even if there are differences.
- Click “Reconcile” to complete the reconciliation.
This pop-up message will appear to show the close date for the last reconciliation and its ending balance.
4. Reconciliation Reports
To generate the reports, navigate to Reports > Banking/Budgeting > Reconciliation > Detail. This NetSuite Bank Reconciliation Report can be generated and exported as CSV, Excel, DOC, and PDF files.
Completing your bank reconciliation in NetSuite is crucial to ensuring your cash balances are reconciled and balanced.
Wrapping Up
As a highly accredited NetSuite Solution Provider, ScaleNorth is well-positioned to help you with the full scope of your NetSuite customization needs. If you require more NetSuite assistance, contact ScaleNorth today.
Bank Reconciliation in NetSuite FAQs
Why is bank reconciliation important for finance teams?
Bank reconciliation ensures your financial statements are accurate and supports proper internal controls, enhancing audit readiness by verifying financial data. It reduces manual reconciliation errors, improves audit-trail compliance, and helps finance teams make better decisions about customer payments, bank fees, and overall cash management.
Can NetSuite automate the reconciliation process?
Yes, NetSuite supports automated workflows to streamline account reconciliation. Automated reconciliation reduces manual effort, data entry, and human error when handling high transaction volumes, while ensuring accurate journal entries in the general ledger. You can also utilize third-party tools like ZoneReconcile, an account reconciliation software, to further streamline and automate the bank reconciliation process.
What is the NetSuite Account Reconciliation module?
The NetSuite Account Reconciliation module provides a user-friendly solution for finance teams to manage accounts receivable, accounts payable, credit card statements, and other accounts. It offers real-time visibility into the financial close and month-end and period-end close process, reducing time-consuming manual tasks.
How does NetSuite improve month-end and financial close?
With automated reconciliation, intelligent matching rules, and integrated workflows, NetSuite accelerates month-end processes, ensures timely account reconciliation, and improves the accuracy of financial reporting.
Can this process handle credit card statements and multiple transaction volumes?
Yes, NetSuite can reconcile credit card and bank statements, manage high transaction volumes, and provide real-time insights into cash flow and other metrics.
Is NetSuite better than QuickBooks for bank reconciliation?
Unlike QuickBooks, which requires significant manual reconciliation, NetSuite provides automated reconciliation, supports role-based access, and integrates with other financial management processes, giving teams real-time visibility into financial records.
How does NetSuite reduce manual effort and errors?
By integrating workflows, matching rules, and automated reconciliation, NetSuite reduces manual effort, prevents misstatements and discrepancies, and ensures accurate financial records for decision-making.
What types of accounts can be reconciled in NetSuite?
NetSuite can reconcile bank accounts, credit card statements, accounts receivable, intercompany transactions, and other modules within the financial management system, supporting both internal controls and audit trail compliance.