With Version 2011.2, NetSuite broadens its cost accounting capabilities functionality beyond LIFO, FIFO and Average Costing with the addition of Standard Cost accounting.
Standard Costing allows manufacturers and wholesale distributors to more easily identify cost saving opportunities both in the production and procurement process. It enables businesses to maintain Standard Costs broken out across the various cost categories of the product and perform variance analysis between the actual cost and the standard costs.
This ability gives managers more information about when variances occur and why, so they can:
- More easily understand why actual costs differ from expected costs
- Pinpoint the exact cost categories that might be responsible for the variation, such as materials or labor cost changes
- Take the appropriate action to ensure that cost variances are less likely to occur in the future.
Firms can review variances to identify cost improvement areas:
- Purchase price variances are generated for the procurement process
- Production quantity and cost variances are generated in the production process.
Simply Select Standard Costing in Enable Features to Get Started
Select Costing Method for Inventory Items
To get started using Standard Costing navigate to Enable Features, and check Standard Costing on the Items and Inventory subtab. After enabling the feature, you'll want to complete the following steps to get started:
- Define cost categories for inventory. Cost categories are used to classify the type of inventory item. They enable you to easily see the different types of manufacturing cost variances.
- Define cost versions. If you expect standard costs to change over time, or they vary based on location, you can establish multiple cost versions to define the expected price at a specific time or location.
- Configure item records. On item records, you can now select Standard Cost as a costing method for assembly and inventory items, as well as for lot or serial numbered items. For service and inventory items, you can assign a cost category.
- Set up Planned Standard Cost records. Next, for each cost version, you'll need to enter the standard cost for the inventory items in a Planned Standard Cost record.
- Roll up Standard Costs to calculate the total cost of the assembly. The total cost of assembly and subassembly items can be calculated by rolling up the standard costs across the individual inventory items.
- Update Standard production costs. Finally, you'll need to set the standard cost into production. Select the cost version, and a date it should be effective. In addition, this process reviews the inventory and revalues it due to standard cost changes.
Using Standard Costing, there are no changes in the way data is entered into NetSuite. However, new accounting lines are introduced for several transactions to store the variances, including:
- Purchase order receipts and other receipt transactions
- Transfer order processing
- Inventory transfer
- Assembly build (production price variance and production quantity variance)
- Assembly un-build.
Advanced Bin/Numbered Inventory Management
For the average company that stocks goods, inventory accounts for more than 40% of total assets. This means inventory accuracy is a critical factor in maximizing operating efficiency. With this release, NetSuite provides enhancements to bin management that provide improved efficiency and accuracy for warehouse processes.
The new Advanced Bin/Numbered Inventory Management feature in Version 2011.2 provides usability enhancements for tracking items with bins. Additionally, warehouse tracking of lot and serial numbered items within a specific bin is now available and helps to accurately pinpoint numbered goods. This accuracy is extremely critical for traceability, as well as during recalls.
- Eliminates the need to pre-associate bins with items. You are no longer required to pre-associate bins with items in order to use bins on transactions. Any bin can be used for any item, whether or not it is identified on the item's record.
- Associate serialized and lot numbered items. When you also use the Lot Tracking or Serialized Inventory features, you can now assign bins to serial numbered items and lot numbered items.
- Provides a new inventory detail/bin selector popup. A popup selector is now available for choosing a bin for an item. Simply click the Inventory Detail button on records and transactions to filter the bins list, choose a bin and enter a quantity.
- New inventory detail subtab. This new subtab now shows the item on hand by bins. (Note: items that are not put away will not count towards the on-hand total at the bin level).
To enable this feature, navigate to Enable Features and check the Advanced Bin/Numbered Inventory Management box on the Items and Inventory subtab.
Note: The Advanced Inventory module is required to access this feature.
Vendor Bill Approval Routing
The New Vendor Bill Approval Routing feature provides finance organizations with automated tools to enforce strong approval processes for managing bills from vendors. It enables them to quickly identify and manage any variances between a vendor bill and the original purchase order.
This new feature provides two methods for managing the approval process:
- Standard Vendor Bill Approval
For simple bill approval needs, you can use the standard vendor bill approval process. Set up the default approval status by navigating to Setup > Accounting > Accounting Preferences. An approval status field has been added to the vendor bill page. If there are bills with a pending or rejected approval status, they can be set to Approved on the Approve Bills page.
- Custom Vendor Bill Approval Using SuiteFlow
Some businesses have more complex approval workflows, or process approvals based on variances between the purchase order and invoice. These companies can use SuiteFlow workflow management to create more tailored review and approval processes.
- At Setup > Accounting > Accounting Preferences, check the Enable Custom Vendor Bill Approval Routing box.
- Customize your workflow using SuiteFlow to include rules for approval processes, criteria and tolerances for variances.
- Deploy your new Bill Approval workflow.
Simple Bill Approval Management Using Standard Vendor Bill Approval
Create Sophisticated SuiteFlow-Driven Bill Approvals
New Provider for NetSuite Premier Payroll Service
NetSuite is now partnered with Ceridian, one of the world's leading providers of payroll and human resources (HR) services.
Ceridian will handle fulfillment of aspects of the NetSuite Premier Payroll service, including:
- Tax payment and filing services
- Direct deposit of payroll
- Payroll check and W-2 printing services.
Existing Premier Payroll Service customers will be transitioned over to Ceridian by August 15, 2011. Your central point of contact for all NetSuite Premier Payroll matters remains with NetSuite and we are working diligently to ensure you have no interruption to your payroll service through this transition.
Customers interested in adopting the NetSuite Premier Payroll Service should contact their account manager for more details.
Fixed Asset Management Module
Fixed Asset Management has been the second most popular request for new functionality among NetSuite customers, and NetSuite is pleased to deliver on those requests with a new add-on module for Fixed Asset Management. This module was originally built by our partner, Nolan Business Solutions, using the SuiteCloud platform and is therefore completely native to NetSuite.
NetSuite Fixed Asset Management enables you to maintain and control the complete asset lifecycle from creation to depreciation, revaluation and retirement. Its detailed asset management functionality supports multiple depreciation calculation types, handling of depreciating and non-depreciating assets, maintenance schedules and insurance. Tight integration with NetSuite Financials creates accounting entries and fixed assets from purchases, and posts depreciations and asset retirements directly to NetSuite's accounting core.
You can view a recorded webinar demonstration of the new Fixed Asset Management module here.
Note: Fixed Asset Management functionality is available as an add-on module.
Easily Add System Notes to Account, Subsidiary, Class, Department or Location Records
Easily Set the Currencies on the Customer Record
System Notes on Account, Subsidiary, Class, Department and Location Records
NetSuite now provides an even more comprehensive audit trail by showing system notes on Account, Subsidiary, Class, Department and Location records. This added level of granular tracking will make it even easier to comply with Sarbanes-Oxley standards and pass financial audits.
Multi-Currency Customer Management
The new Multi-Currency Customer feature makes it easy to manage customers who are being sold to across multiple currencies. A new list has been added to the customer record that enables the applicable currencies to be set for each customer. This currency list at the customer level acts as a "white list" that can then be applied to transactions belonging to the customer. On every associated transaction, any currency that is set up in this white list for the customer can be used.
Customer records now also have a primary currency, which serves as the currency for aggregated balance and credit limits as well as the default on new sales transactions.
Open receivables balances are tracked separately for each currency, and printing statements generates a statement in each currency for ease of remittance. This new multi-currency feature improves the power and flexibility of the Consolidate Payments feature.
General Ledger Data Extracts for Tax Audits
The new Tax Audit Files SuiteApp makes it easier for businesses to provide electronic records of general ledger data in support of tax returns, and for tax auditors to review accounting records.
The Tax Audit Files SuiteApp available in the NetSuite bundle repository allows users to generate an extract of general ledger (G/L) data in a format that follows government statutory requirements.
Supported formats include:
- SAF-T for countries in the European Union
- IAF for Singapore.
If government statutory requirements are not available, then you can generate G/L data in a standard CSV file format. Exported data can be filtered by date or period, and by subsidiary.
This new feature also provides an easy way to back up or archive critical transaction data that has an impact on the general ledger.
Expanded Country Tax Reporting for Asia, Latin America and Europe
NetSuite is continuously increasing its support for global tax compliance by regularly adding new tax forms to the International Tax Reports SuiteApp, available in the NetSuite bundle repository. With this release, tax forms for 13 countries have been added. This brings the total number of out-of-the-box country-specific tax reports to more than 30.
New tax reports with detailed audit trails are now available:
- Singapore: GST F5
- Thailand: VAT PP30
- Belgium: Belasting over de Toegevoegde Waarde (BTW)
- Chile: Formulario 29
- Colombia: Formulario 300
- Denmark: MOMS
- France: Taxe sur la Valeur Ajoutée (TVA)
- Ireland: VAT 3 Return and Annual Return of Trading
- Norway: Merverdiavgift (MVA)
- Peru: PDT 0621
- Romania: Taxa pe valoarea adaugata 300
- Taiwan: Value Added Type and No Value Added Type Business Tax
- Uruguay: Formularios 2176 and 2178.