NetClose - Reconciliation Journal Entries
Overview
Within NetClose, users may tag Explained Journals and Adjusted Journals automatically to reconciliation records. In addition to journal entries, all other NetSuite transaction types can be used to explain reconciliation balances through this process. The purposes of Explained vs Adjusted journals are outlined in more detail below.
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Explained Journals
The purpose of Explained Journals is to link transactions and supporting documentation directly to a NetClose Reconciliation record and avoid duplicate work at the time of preparing the reconciliation.
Step By Step Process
Within your bill, journal, or other transaction, add Explained Journal to the field NetClose Reconciliation Transaction Item Type. Then, save your transaction. Please note that if approval routing is in place, transactions will not be linked as reconciliations items until the transaction has reached Approved status.
Once the applicable reconciliation has been generated, you'll find the Explained Journal on the Items subtab of the reconciliation. Select the reconciliation item to see the corresponding transaction linked, as shown below. Additionally on this record, you'll have access to any supporting documentation that was added to the Explained Journal transaction.
Adjusted Journals
The purpose of Adjusted journals is to allow users to make period-end accounting entries to ensure that revenue and expenses are recorded in the correct period.
Step By Step Process
Users can create Adjusted Journal Entries directly from the reconciliation record by going to the Items subtab and selecting Create Journal.
Once created, the journal will show up as an item on the reconciliation record. If approvals are in play, an icon warning (like the above symbol) will indicate that the journal is in Pending Approval status. Once the journal is approved, the reconciliation GL Balance and Unexplained Balance will be adjusted but the Explained Balance will not be affected.
To open the journal, select the item from the Items subtab. On the Item record, you'll find the linked journal entry in the Adjustment Journal field.
Creating Adjusting Journals in NetSuite
You may also create the Journal Entry directly in NetSuite and then link it to the reconciliation through the NetClose Reconciliation Transaction Item Type field on the transaction. Simply select Adjustment Journal from this dropdown.
Then, return to the reconciliation and select Refresh Balances to see the journal show up as an item.