Financial User Exam Flashcards
How many subsidiaries can you create?
75 plus the parent (eliminations don’t count)
What is an elimination subsidiary used for?
Balancing out consolidated financial information to account for intercompany transactons
What values cannot be changed for a subsidiary record after you save?
Parent, elimination ✅, Currency, Country, Edition
Why should you be careful when creating a new subsidiary?
Cannot be deleted and will continue to show up in reports when inactive
How are Netsuite departments different from other common accounting software?
Departments are GL accounts in many systems but not in NS
What many numbers does Netsuite use by default for GL accounts?
By default there are NO numbers. When Enabled there are four by default
What is the first number in asset accounts?
1XXX
What is the first number in liability accounts?
2XXX
What is the first number in equity accounts?
3XXX
What is the first number in income accounts?
4XXX
What is the first number in COGS accounts?
5XXX
What is the first number in Expense accounts?
6XXX
What is the first number in Other Income accounts?
8XXX
When would you continue to utilize an account while having it marked inactive?
You would do this for a “Summary” account, which means its a parent account that summarizes the activity of children for reporting. Clicking ‘Summary’ will automatically check ‘Inactive’
What is a billing schedule?
Record that schedules billing a sale over a range of time (contract term)
What are three types of billing schedules?
Standard, Fixed Bid Interval, Fixed Bid Milestone
When does a payment post to undeposited funds?
If the payment account is not a bank account
When is a refund created and when is a credit memo created?
A refund is a payment to a customer and a credit memo reduces customer amount owing (not compatible with a cash sale). Note: credit memo is required before a refund if there is a customer deposit
What are two ways you can apply a billiing schedule?
Sales Order (apply for the transaction)
Item Record (will default to billing schedule on SO)
What does the in arrears checkbox mean on a billing schedule?
Checked = bill at end of specified period
Unchecked = first invoice bills at the same time as the first recurring invoice
What feature needs to be enabled to use the Fixed Bid, Interval schedule?
Advanced Projects
Can you link billing schedules to cash sales?
Yes. If the SO -> Cash Sale form is used
Why is a T&M billing schedule always in arrears?
Because you will not be immediately reimbursed for costs
On a billing schedule, can you set the initial amount to be a percentage?
Yes. It can be an amount or a percentage. Just put a percentage sign
How do you create an invoice from a billing schedule?
From the sales order (Next Bill button) or from the Billing Queue
Can a single vendor have multiple currencies?
Yeah baby!
How many lines can a JE have
10,000
What are the three options for memorized transactions?
Template Only, Reminder, Automatic
What does the “template only” selection on a memorized transaction do?
Use as a template, but will not create any actual transactions.
What does the “remind me” selection on a memorized transaction do?
Get reminded when this transaction is due so that you can view and edit it before you save it.
What does the “automatic” selection on a memorized transaction do?
Repeating transaction automatically posts on a schedule
What does the “update prices” checkbox do on memorized transaction?
It will update pricing on the transaction to match any recent changes
Define differences betweeen fixed and dynamic allocation
Dynamic Allocation allocates expenses across accounts or segments based on amounts defined in a statistical account.
A fixed expense schedule allocates expenses across departments based on a fixed percentage.
What is a reference row in a report?
Used in financial statement to display a value referenced from a section or row in another financial statement. For example Cash Flow Statement uses Net Income from the Income section of the standard Income Statement
Can period close checklist be modified?
No. But it will appear differently depending on what features are enabled.
What is a fiscal calendar?
Used when there are subsidiaries with different fiscal years/periods. You may use Fiscal Calendars when “Multiple Calendars” enabled in OneWorld
What is “Quick Close” when dealing with accounting periods?
Allows you to close multiple periods with one click. Useful when periods have been reopened.
What are three project billing schedule types?
Time & Materials, Fixed Bid (Interval and Milestone), Charge-Based
What is a fixed bid billing schedule? (Explain the two types)
A fixed bid schedule allows you to bill customers at predifined dates (Interval Billing) or based on project milestones in which case the completion of project tasks and milestones will make SO available for billing.
What is charge-based project billing?
Automates the creation of project charges based on defined Charge Rules which can be based on project progress, costs, etc.
What does the “Use Next Date” selection mean on the Enter Memorized Transactions Page?
It means the reminder will come the first day after the weekend if the date falls on a weekend
What happens if you creat a memorized transaction from a memorized transaction?
You see a warning that you are creating a new set of memorized transactions. If you click cancel you’ll be directed to edit the existing memorized transaction
Can you make multiple budgets for the same time period?
Yes, with multiple budgets enabled
What are two attributes of a local budget?
Associated with one subsidiary only and uses the currency of that subsidiary
What currency will a global budget be in?
The currency of the root (parent) subsidiary
Why would someone at headquarters see budget amounts have fluctuated when looking at the same month twice?
Because subsidiaries budgets are in their local currency
Why would someone at a subsidiary see budget amounts have fluctuated when looking at the same month twice
Because the income and expense part of their budget is affected by the currency of the parent company and she is viewing it in local currency
True or False: You can create a budget with an elimination subsidiary…
True. You must enable the Feature
What does “Normalize” amount mean in allocation?
Clicking button recalculates the allocation amounts so that the total allocated amount matches the original transaction line item amount.
Whats the difference between Electronic fund transfer and Electronic Payments in Netsuite?
Electronic Funds Transfer in Netsuite allows you to get paid by customers. The other one is for paying vendors and employees
What does the reversal date field on the Journal Entry page do?
Reversing JE will post on that date
What does the defer entry checkbox on the Journal page do?
The reversal (a memorized transaction) will automatically occur on the chosen reversal date
How do you edit a reversing journal entry?
You can’t. The only way to change it is by changing the source journal entry since they are tied
If a JE is approved after the selected posting period, what happens?
It posts to the first open period
Can you create an intercompany Journal Entry that includes an elimination subsidiary?
No
In an intercompany JE, what company do you select on the first line?
The “from” subsidiary (this is also referred to as just “Subsidiary” in header”
What is the default currency for an intercompany JE?
The “from” subsidiary (this is also referred to as just “Subsidiary” in header”
What does an Advanced Intercompany JE do?
Transfers funds across accounts in multiple subsidiaries
What feature in NS will automatically create elimination JEs?
Automated Inter-company Management Feature
What feature allows you to create billing schedules?
Advanced Billing
What transactions impact COGS and Inventory Asset
Item Fulfillment and Return Receipt
What transactions impact Undeposited funds and Sales Income
Cash Sale and Cash Refund (Refund can also come directly out of Checking Account)
What transactions impact AR and Sales Income
Invoice and Credit Memo. Also Statement Charge.
What transaction debits Undeposited funds and credits AR?
Customer Payment
What transaction debits undeposited funds and credits Customer Deposits?
A customer deposit!
What transaction debits Inventory Assets and credits Accrued Purchases?
Item Receipts
What transaction debits AP and credits Checking account?
Vendor Payments
