Financials Quick Reference Guide

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NetSuite Version 2021.2

Financials First Standard - Item Management

Quick Reference Guide

Navigating the Quick Reference Guide

There are several ways to navigate this Quick Reference Guide (QRG):

1) Click a desired orange-highlighted functional box in the process diagram below.

2) Click a link in the Table of Contents.

3) Use the Microsoft Word Navigation Pane:

a. Activate by navigating to View and check Navigation Pane.

b. Click the area of interest.

Quick Reference Guide 2

Process Diagram


Table of Contents

Quick Reference Guide ...................................................................................................................................... 1

Navigating the Quick Reference Guide ......................................................................................................................... 1

Process Diagram ............................................................................................................................................................ 2

Table of Contents .............................................................................................................................................. 3

Item ............................................................................................................................................................................... 4

Create an Inventory Item ........................................................................................................................................ 4

Create a Description Item ....................................................................................................................................... 7

Create an Item Group ............................................................................................................................................. 8

Create a Discount Item ........................................................................................................................................... 9

Units of Measure ......................................................................................................................................................... 10

Create Unit of Measure......................................................................................................................................... 10

Assign Units of Measure ....................................................................................................................................... 11

Item Pricing .................................................................................................................................................................. 12

Set Up Price Levels ................................................................................................................................................ 12

Set and Use Quantity Pricing ................................................................................................................................ 12

Set and Use Pricing Groups ................................................................................................................................... 14

Inventory Adjustments ................................................................................................................................................ 15

Adjust Inventory .................................................................................................................................................... 15

Adjust Inventory Worksheet ................................................................................................................................. 16

Review Negative Inventory ................................................................................................................................... 17

Inventory Transfers ..................................................................................................................................................... 18

Perform an Inventory Transfer ............................................................................................................................. 18

Create Transfer Order ........................................................................................................................................... 19

Fulfill Transfer Order ............................................................................................................................................. 20

Receive Transfer Order ......................................................................................................................................... 21

Key Reports .................................................................................................................................................................. 22

Review Standard Report ....................................................................................................................................... 22

Review Custom Report.......................................................................................................................................... 23

Key Performance Indicators .................................................................................................................................. 24


Item

Create an Inventory Item

NetSuite inventory item records enable you to track the quantity and value of your inventory. Your

balance sheet will automatically reflect the value of your inventory on hand, and your income statement

will automatically reflect the markup you charge for these items.

Steps

1) Navigate to Inventory > Lists > Items > New.

2) On the New Item page, select Inventory Item.

3) Enter the Item Name/Number. This can be a SKU number, code, or display name.

Notes:

• If you enter a code in the Item Name/Number, enter a Display Name.

• If you do not enter a display name, the Item Name/Number appears on printed forms.

4) Select the Subsidiary this item will be available in.

Note: Select the Include Children checkbox to make this item available in child

subsidiaries.

5) Enter the Vendor Name/Code of this product:

Option A: Enter the Vendor Name/Code if the vendor uses a different name for the item.

Option B: On the Purchasing/Inventory subtab, Vendors subtab, enter the Vendor Code when

there are several suppliers for the item.

6) Categorize the item by Department, Location, or Class, as applicable.

7) Select the Units Type to be used.

8) The Primary Stock Unit, Primary Purchase Unit, and Primary Sales Unit populate based on the

options defined in the Unit Type.

9) Navigate to the Sales/Pricing subtab. Enter the following:

• Sales Description

• Minimum Quantity that customers must purchase, if available.

10) Navigate to the Shipping section.


Option A: If shipping integration is set up and packages are defined, complete the following

steps.

a. Select the Package size.

b. Select the Ships Individually checkbox if no other items should ship in the same package.

Note: This information populates on order fulfillment records and helps return

accurate real-time shipping rates from your integrated shipping carrier.

Option B: If shipping integration is not set up, enter the Shipping Cost, if applicable.

11) Enter a Handling Cost, if required.

12) In the Pricing section, set the Base Price for the item.

Notes:

• If Multiple Currencies are enabled, add a price for all currencies of the product.

• If alternate price levels are defined, the alternate prices will populate

automatically.

• Define quantity discounts manually or by assigning a Quantity Pricing Schedule.

• Select the Use Marginal Rates checkbox to apply the quantity price to each pricing bracket

separately.

• Select Calculate Quantity Discounts to choose how quantities will be computed.

• Select the Pricing Group if applicable.

• Assign a Billing Schedule if the item will be invoiced to the customer using a standard

schedule.

Note: The selected billing schedule will appear by default when the item is added to a

sales order.

13) Navigate to the Purchasing/Inventory subtab. Edit the following:

• Costing Method.

Notes:

• The Standard Costing feature can be enabled, if required.

• Once an item record is saved, the costing method cannot be changed.

• Purchase Price, if known.


Note: NetSuite calculates Total Value by multiplying the Purchase Price by the quantity

on hand.

• Purchase Description

• Stock Description

• Select the Match Bill to Receipt checkbox to generate variances based on the vendor bill.

• Reorder Multiple, if applicable.

Note: If the preference Use Item Cost as Transfer Cost has not been enabled, enter the

Transfer Price.

• Manufacturer, if applicable.

• MPN (Manufacturer’s Part Number), if applicable.

• Manufacturer Country, if applicable.

1) In the Vendor Bill Matching section, add tolerances according to your company policy.

2) In the Locations subtab, select the Preferred Division for this item.

3) Under the Vendors subtab, list vendors that provide this item.

Tip: For vendors shared in multiple subsidiaries, the vendor can be added several times to

each subsidiary. Specify a different item price per subsidiary.

a. Add the vendor Code and pricing Schedule, if applicable.

b. Select the Preferred checkbox to designate this vendor as the main vendor.

Note: Only one vendor can be marked as preferred.

c. Enter the Purchase Prices in each vendor-assigned currency. Click the Icon to display the

pop-up window.

d. Select the Currency.

e. Enter the Purchase Price. Repeat as appropriate for additional currencies.

f. Click [Add].

14) Click [OK].

15) Click [Add]. Create more vendors following the same steps.


16) On the Accounting subtab, confirm or select the following accounts impacted by the purchase

and sale of this item:

• COGS Account

• Asset Acount

• Income Account

• Gain/Loss Account

• Price Variance Account

• Quantity Variance Account

• Exchange Rate Variance Account

• Customer Return Variance Account

• Vendor Return Variance Account

17) Select the applicable Tax Schedule.

18) Click [Save].

Create a Description Item

Description item records are used to create a description line you can add to your transactions. Use the

description item to enter long descriptions, without amounts, as line items.

Steps


2) Select Description.

3) Enter the Item Name/Number.

4) Enter a Description for the item.


6) Select the Include Children checkbox to make this available in child subsidiaries.

7) Click [Save].


Create an Item Group

An item group is stocked and sold as a single unit but is made up of several individual items. It can be

made up of taxable and non-taxable items. Be aware that group price is always dependent on member

item prices. Details for each group component can be changed on transactions.

Steps


2) Select Item Group.

3) Enter the Item Name/Number. This can be a SKU number, code or display name.

Notes:



4) Enter a Description.



Note: Any item added to this item group must be available to all of the subsidiaries

defined on the Item Group record.

7) Categorize the item by Department, Class, or Location as applicable.

8) On the Purchasing/Inventory subtab, add the components that will make up the item group.

Note: You may add items of any type, including inventory, non-inventory, service,

description, and so on.

9) Select the Display Components on Transactions checkbox to display the member items on

transactions.

Note: Clear the box to display only the description and the amount of the item group on

transactions.

10) Click [Save].


Create a Discount Item

Discount items in NetSuite Point of Sale (NSPOS) are used to map promotion discounts for accounting

purposes. They provide methods for managing your accounting and tracking needs.

You can create discount items to use on sales transactions. When these items are added, discounts are

applied to the items being sold.

Steps


2) Select Discount.

3) Enter the Item Name/Number. This can be a SKU number, code or display name.

Notes:



4) Enter the Rate for this discount. The rate can be either a percentage or dollar amount.

Note: A percentage discount must be preceded by a negative sign and followed by a

percent sign.

5) If this is a SubItem Of another item, then select the parent item.

6) Enter a Description.



9) Categorize the item by Department, Class, or Location as applicable.

10) On the Accounting subtab, select the Account to be debited when this discount is applied.

11) Select the Apply Before Sales Tax checkbox to apply this discount before taxes are calculated.

Note: This option is only for use in countries that levy sales tax, such as the United States.

This checkbox does not have any effect on countries that use value-added tax (VAT).

12) Click [Save].


Units of Measure

Create Unit of Measure

Units of Measure allows the ability to define different units used to stock, purchase and sell inventory

items. You can create units of measure with a single dimension. You can also create categories of related

units of measure.

Steps

1) Navigate to Inventory > Lists > Units of Measure > New.

2) Enter a measurement Type Name.

3) Enter the Name, Plural Name, Abbreviation, and Plural Abbreviation.

Note: Abbreviations are displayed on transaction forms.

4) First, create a base unit. This will be used to define other units in this group. Mark the checkbox

in the Base Unit cell.

5) The default base unit Conversion Rate is 1.

6) Click [Add] to create a new unit within this group.

7) Repeat step 3.

8) In the Conversion Rate field, enter the number of base units that make up one of this unit.

9) Click [Add].

10) Repeat steps 7-9 for each additional unit.

11) Click [Save].


Assign Units of Measure

Assign a unit type as you create an item record to define the default unit of measurement used to

purchase, stock, and sell the item.

Steps to Assign Units of Measure to an Item

1) Navigate to Inventory > List > Items.

2) Click Edit next to the name of the item you want to assign a unit type.

3) In the Item Detail section, select the Units Type.

4) A popup window will appear stating that all values in this item are currently in base units and

saving will now display the values in stock, purchase, and sale units.

5) Click [Ok].

6) The base unit displays. The Stock, Purchase and Sale Units fields will display the same unit. Edit

as needed.

7) Click [Save].

Note: Once saved, the Units Type cannot be changed. However, you can reassign Stock,

Purchase and Sales Units.


Item Pricing

Set Up Price Levels

When the Multiple Prices feature is enabled, price levels can be set up by the Administrator. The Base

Price level represents the default price level. Define additional price levels that offer discounts or

markups to the base price.

• On an item record, price levels appear under the Sales/Pricing tab.

• On a sales order, price levels are available for selection.

• Price levels can also be assigned to a customer record to ensure they get the adjusted price

automatically.

Steps

1) Navigate to Inventory > Lists > Items.

2) Click Edit next to the item to update.

3) On the Sales/Pricing tab, select the main Currency in which the item will sell. The price level and

associated discount or markup display.

4) Enter the Base Price. The price levels auto-populate according to their discount.

5) Repeat steps 3-4 for each additional currency.

6) Click [Save].

Set and Use Quantity Pricing

Quantity based pricing lets you automatically apply different sales prices to items depending on the

quantity being sold. This enables you to offer discounts to customers who buy in bulk. The maximum

number of quantity-based price levels available is set by the Administrator.

Steps


2) Click Edit next to the item to update.

3) On the Sales/Pricing subtab, click the main currency.

4) In the QTY field, define the quantities.


5) Enter the Base Price. The quantity discount for each price level automatically populates.

Note: Different discount percentages can be set per price level by enabling the accounting

preference Allow Discounts per Price Level on Quantity Pricing Schedules.

6) Select the Use Marginal Rates checkbox if you want the quantity discounts to be applied to each

pricing bracket separately.

Tip: Clear the Marginal Rates checkbox to apply the discount to all items on the order

when 10 or more are sold.

7) In the Calculate Quantity Discounts field, determine how items on the sales order are counted

toward the quantity discount:

• Select By Line Quantity to apply quantity pricing based on quantity included on the individual

line.

• Select Overall Item Quantity to apply quantity pricing by counting all identical items.

• Select By Overall Parent Quantity to apply quantity pricing for all items with the same parent

item.

• Select By Overall Schedule Quantity to apply quantity pricing to all items that use the same

pricing schedule.

8) Select a Quantity Pricing Schedule for several items that require the same quantity pricing

structure. The schedule populates the quantity levels, the discounts to be applied, and the

method to calculate the quantity discount.

9) Click [Save].

Tip: Use NetSuite’s pricing features to define and automate the pricing of the good you

sell.


Set and Use Pricing Groups

Price groups allow you to assign customer-specific price levels for groups of items. For example, you

could create a pricing group called Laptops and associate the pricing group with all of your laptop items.

Pricing groups are set up by your Administrator.

Steps to Use Pricing Groups to an Item


2) Click Edit next to the item.

3) Navigate to the Sales/Pricing subtab.

4) In the Pricing section, select the Pricing Group to assign to this item.

5) Click [Save].


Inventory Adjustments

Adjust Inventory

When you Adjust Inventory, change the quantity and value of an inventory item without entering a

purchase order. For example, to account for clerical errors, changes in cost, thefts or miscounts, you can

enter an inventory adjustment.

• If you use the LIFO (Last In First Out) or FIFO (First In First Out) costing methods, an inventory

adjustment can be entered to change the quantity and value of an inventory item and

preserve the costing history of the item.

Steps

1) Navigate to Inventory > Inventory > Adjust Inventory.

OR Locate the Dashboard Tiles and click the Inventory Adjust link.

2) Select the Subsidiary. Inventory location and adjustment accounts are based on the selected

subsidiary.

3) Select the Adjustment Account.

4) Select the Customer or project if the inventory adjustment is project-related cost but not

specifically billed as a line item.

5) Confirm the Date.

6) Enter a Memo.

7) (Optional) Select the Department, Class, and Location to associate with the adjustment.

8) Select the Adjustment Location for this transaction.

Note: Select the location where the inventory adjustment at the line level of each item.

9) On the Adjustments subtab, select the Item.

10) Select the Location where the inventory will be adjusted.

11) The Quantity On Hand and the Current Value for the selected location display.

12) Enter the adjustment value in the Adjust Qty. By field.

Notes:

• To increase quantity, type in a positive number.

• To reduce quantity, type in a negative number.


13) The New Quantity and Estimated Unit Cost display.

14) Click [Add].

15) Repeat steps 9-14 for each additional item.

16) The Estimated Total Value field displays the total value of the change in inventory.

17) Click [Save].

Adjust Inventory Worksheet

Use the Adjust Inventory Worksheet to correct the overall quantity and value of your inventory on hand.

Steps

1) Navigate to Inventory > Inventory > Adjust Inventory Worksheet.

2) Select the Subsidiary.

Note: Inventory location and adjustment accounts are based on subsidiary.

3) Select the Adjustment Account.

4) In the Transaction Order, select when this worksheet will post.

Notes:

• If you select First transaction in a day, any additional inventory transactions entered

during the day will not be included.

• If you select Last transaction in a day, all inventory transactions entered during the

day will be included.

5) Confirm or edit the Date.

Note: Inventory quantities and values will be calculated as of this date.

6) Add a Memo.

7) Select a Location. An inventory list displays, with the quantity and inventory value calculated as

of the date.

Note: If the inventory list spans multiple pages, submit one page of adjustments at a time.

Information will be lost if you switch between pages.


8) Enter the New Qty (Quantity) for the inventory count.

Note: A warning dialog box displays which states that if you use LIFO or FIFO costing, the

cost of item you have adjusted will be averaged. However, if LIFO and FIFO will be

ignored, your costing history will be lost.

9) Click [Save].

Review Negative Inventory

Identify negative inventory values that can be corrected by adjusting them to be positive. This process

does not create a physical count. A physical count should already be completed before you begin this

task.

• Run this report before distributing inventory because an item’s inventory level should be zero

or positive prior to distribution.

Steps

1) Navigate to Inventory > Inventory > Review Negative Inventory.

2) Enter the As of Date.

3) Select the inventory Location.

4) A list of items with negative inventory displays.

Tip: Use the list to identify items that require inventory adjustment so that the amounts

are no longer negative.


Inventory Transfers

Perform an Inventory Transfer

The Inventory Transfer transaction posts details about per-location item inventory level changes when

items are transferred between two locations. This basic inventory transfer decreases items in the source

location and increases them in the receiving location.

Steps

1) Navigate to Inventory > Inventory > Transfer Inventory.

OR Locate the Dashboard Tiles and click Inventory Transfer.

2) Add a Memo.

3) Select the Subsidiary where the transfer will occur.

Note: Locations are populated based on the selected Subsidiary.

4) Select the From Location, where the items will be fulfilled.

5) Select the To Location where the items will be received.

6) On the Items tab, select the items to transfer.

7) Enter the Qty. to Transfer.

Notes:

• The Quantity on Hand lets you know the current inventory at this location.

• Do not exceed the quantity on hand.

8) Click [Add].

9) Click [Save].


Create Transfer Order

Enter a transfer order to schedule items to be shipped out of one location and received at another

location. Transfer orders enable you to track items in transit between two locations.

Notes:

• Transfer orders in a Pending Fulfillment status are automatically marked as Firmed.

• Firmed transfer orders commit the items to this transfer order.

• Committed items cannot be reallocated to other orders.

• Firmed transfer orders cannot be rescheduled or cancelled.

Steps

1) Navigate to Inventory > Inventory > Enter Transfer Orders.

2) Select the Subsidiary where the transfer will occur.

Note: Locations are populated based on the selected subsidiary.

3) Select the From Location where the items will be fulfilled.

4) Select the To Location where the items will be received.

5) Select an Employee to associate with the transfer order.

6) Enter a Memo.

Notes:

• The Quantity on Hand lets you know the current inventory at this location.


7) In the Incoterm field, select when the transfer of ownership occurs.

Option A: Select DAP (Deliver at Place) if at the destination point

Option B: Select EXW (Ex Work) if at shipping point.

Notes:

• The Incoterm impacts accounting and inventory information.


• Once saved, you can edit the transfer order and select another incoterm

8) Navigate to the Items subtab and select the items to transfer.


a. Select the appropriate Department, Class, and Location.

b. Enter the Quantity.

Note: Do not enter an item quantity that exceeds the item’s quantity on hand.

c. Enter the Expected Receipt Date.

d. Select a Commit option.

Notes:

• Available Qty commits items that are available. Available items are shipped;

unavailable items are placed on backorder.

• Select Complete Qty to ship only when all items are committed.

• Do Not Commit leaves items uncommitted.

e. Click [Add].

9) On the Shipping subtab, select a Shipping Carrier and Shipping Method.

10) Click [Save].

Fulfill Transfer Order

After a transfer order is entered, and approved if necessary, the order can be fulfilled. Fulfillment is the

process of taking items out items in an inventory in one location and shipping the items to a second

location.

Steps

1) Navigate to Shipping > Shipping > Fulfill Orders.

OR Locate the Reminders Portlet on the Home dashboard and select Orders to Fulfill.

2) In the Transaction Type field, select Transfer Order.

3) Locate the transfer order and click Fulfill.

4) Enter a Memo.

5) On the Items subtab, select the items to fulfill.

6) Confirm or edit the Quantity to fulfill.

7) Click [Save].


Notes:

• The quantity On Hand lets you know the current inventory at this location.


Receive Transfer Order

When transfer orders are received by a warehouse, the order must be marked as received.

Steps

1) Navigate to Receiving > Receiving > Receive Orders.

OR Select Orders to Receive in the Reminders portlet.

2) Click the Transaction Type heading to sort the list by descending order. Transaction Order should

appear at the top.

3) Locate the transfer order to receive and click Receive.

4) Enter a Memo.

5) In the Items & Expenses subtab, select the items to fulfil.

Notes:

• The information in the To Location and Quantity fields are derived from the item

fulfillment record and cannot be changed

• The quantity On Hand lets you know the current inventory at this location.


6) Click [Save].

7) The Receive Orders page displays. Use the Recent Records menu to access the saved item

receipt.

8) Return to the Transfer Order by clicking the link on the item receipt.

Note: The status of the transfer order is Received.

9) Find the link back to the item receipt and fulfillment records under the Related Records subtab.


Key Reports

Review Standard Report

The Item Management reports enable you to monitor item status through various transactions such as::

• Sales order

• Contract renewal

• Revenue recognition

• Reclassification

Navigate to Item Management reports and review the following available reports:

• Inventory Profitability

• Current Inventory Snapshot

• Physical Inventory Worksheet

• Inventory Valuation

• Inventory Revenue

• Inventory Back Order Report

• Inventory Activity Detail

• Stock Ledger

• Items Pending Fulfillment

• Inventory Turnover

• Transfer Order Register

Note: Each report results include footer options that may be updated to change the report’s data and formatting.

Steps

1) Navigate to Reports > Inventory/Items

2) Select an available report from the list above.

3) Select any footer options.

4) If you modified any filter options in the footer, click [Refresh].


5) Click View Detail to review the detailed report.

Note: Only some reports are available in more detail.

Review Custom Report

Use the following Saved Searches and reports to analyze the Item Management process:

• Available to Sell

• Item Audit Report

• Item Description Change Audit

• Item Price Change

Add these reports your Favorites menu by clicking on > Add to Shortcuts.

• Review the default Name.

Leading Practice: Prefix reports with Rep: or Reports: This helps you identify shortcuts

that are NetSuite pages versus reports or searches.

Steps

1) Perform a global Search for the report name.

Tip: Press [Alt]+[G] to move the cursor to the global Search field.

2) Select the filters one at a time and wait for the screen to refresh, before entering the next filter.


Key Performance Indicators

Key Performance Indicators (KPIs) provide you quick insight into critical business metrics. You can display

KPIs on your dashboard using different portlets:

• Key Performance Indicator

• KPI Scorecard

• KPI Meter

• Trend Graph

This QRG addresses the KPI Scorecard portlet.

Note: Refer to SuiteAnswers or NetSuite Help for more information on setting up portlets.

The following table identifies the Scorecards and KPIs available in your account.

Key Performance Indicator Scorecard Name

Orders Inventory

Inventory Inventory

Open Purchase Orders Report Inventory

Value of Open Purchase Orders Inventory

Steps

1) Navigate to the Home dashboard.

2) Review the dashboard and locate the portlet with the Scorecard Name listed above.

Note: You may also add this portlet to other dashboards.

3) Drill down on the amounts for more detailed information.

4) Hover over the KPI to see the KPIs Trend Graph icon .

5) Click the icon to view a KPIs Trend Graph.

Documents

Financials Quick Reference Guide