Computerized accounting

Practice set

(For Netsuite User)

William T. Sucuahi

INTRODUCTION

Information is one of the vital resources of a company. The accounting department is the

biggest contributor of this information in the entire enterprise. The information provider

should provide timely and precise information to make good decisions. As computer

applications became main stream, transforming data into information has gradually

migrated into computerized spreadsheets. Gradually, accounting systems like Enterprise

Resource Planning (ERP) integrates business process to provide user the best information

they can use. The technological development today like the internet makes ERP became

cloud-based and makes information available anytime and anywhere.

Netsuite is one of leading cloud-based business management software provider in the

world. Its mission is to provide companies around the globe, cloud-based, unified

systems that deliver unprecedented capabilities to drive their business. It is a software as

a service (SaaS) and it is available on demand. Below is general perspective of Netsuite

business management system.

The following are the key benefits of using Netsuite:

• Comprehensive financials including accounting, budgeting, financial reporting

and more

• Get instant visibility into real-time financial and operational performance across

your entire company

• Streamline all back-office processes across financial management, revenue

management, order management, billing and inventory management

• Improve accountability and compliance with robust, auditable accounting and

powerful reporting

• Reduce IT costs and get automatic upgrades with an ERP solution delivered

completely in the cloud

• Get secure access to your financial from anywhere – all you need is web browser

or mobile device

• Drives efficient integrated processes from order to cash through to procure to

pay.

This practice set provides the students' good material to practice computerized accounting

using Netsuite.

The students are expected to generate the following reports and schedules:

1. Statement of Financial Position

2. Income Statement

3. Statement of Cash Flow

4. Sales per customer

5. Sales per products

6. Customer Balances Summary

7. Vendors Balances Summary

8. Payroll Summary

To use the material, assume that you are assigned in the accounting department of the

company. To begin read first the general instructions.

General Instructions

1. Enter company information.

2. Setup the company.

3. Create chart of accounts.

4. Create Vendors List.

5. Create Customers List.

6. Create Items List.

7. Create Fixed Assets List

8. Work on the daily transactions. Place a tick mark in every transaction.

Example:

9. Instructor should check the weekly progress.

Vendor Name PO No. Item Qty. Done

DYBI 3 Best – Cola 7200 �

Best – Orange 7200 �

Chapter 1

Getting Started

Company

The company is engaged in wholesaling food products and selling shoes over the internet. In

addition, the company operates from Monday to Friday only to give the employees time to spend

with their family and perhaps be engaged in other productive livelihood activities (e.g. gardening,

farming, etc.).

In recording disbursements, the company uses the voucher system. Moreover, perpetual system is

used in recording the inventories. In addition, Ezekiel the owner of the company is a married

person and has two dependent children.

LOGGING IN

Open any web browser (recommended Mozilla Firefox and Google Chrome) and go to

www.netsuite.com.

Fig. 1

Click Customer Login and you will redirected to customer login page (Fig. 2). Enter your email

address and the password.

Fig. 2

Once logged in you will be asked to provide security features and to change your default

password.

USER INTERFACE

The NetSuite interface contains center, dashboard and portlets. Each user has a variety set of

tabbed pages, called center. The center varies from user to user depending on their role in

company. The one shown above is the center of an administrator. But there are pages that is

common to each user and that is Home, Activities, Document and Setup.

Meanwhile, dashboard is a collection of real-time data relevant to the page and to the role of the

user viewing the page. Dashboard content is displayed in a variety of portlets, dynamic data

display windows. Some portlets provide direct access to raw data, while others display data that

Center

Portlet

Dashboard

has been synthesized into critical business metrics, such as key performance indicators (KPIs),

performance scorecards, trend graphs, and report snapshots. Other portlets allow you to display

data from Web site RSS feeds.

Personalized Dashboard

To edit the dashboard follow steps listed below:

1. Click Personalize Dashboard located in the Settings portlet.

2. Click Calendar, this time the calendar now has a check mark.

3. Then close the Add Content window by clicking close icon.

4. Then try to rearrange the portlet by dragging it using mouse pointer.

Set Preferences

Setting personal preferences allows you to personalized NetSuite specific to your role and

personality. The page displays options for virtually all aspects of your NetSuite account. The

features enabled in your account, and your NetSuite role affect which subtabs and options display

on the Set Preferences page.

To set your personal preferences:

1. Go to Home > Set Preferences.

As you can see there are various sub-tabs on the page to choose to edit your preference. For

instance, if you want to add your nickname in every message you sent to the vendor just click the

general tab and enter your nickname in the given field together. You can also add a signature

message at the end of every email. Click appearance tab to change the color and style of your interface

COMPANY SETUP

Company Information

Before setting up company information, adjust first the phone number format. To set phone

number format click Setup > Company > General Preference. In the phone number format

choose (123) 456-7890 leave everything as is and click Save.

To setup company information Click Setup > Company > Company Information and fill in the

form with the following data.

Company Name: (Your Name) Company TIN: 17-123456

Legal Name: ES Enterprise Return email address: (Your email add)

Ship to attention: (Name of your best friend) Phone: (617) 222-9987

Address 1: Fox Hollow Ave. City: Ada

Note: You can always click Mr. Help for more explanation

State: Michigan

Zip: 49301

Enabling Feature

You can turn on or off any features in Netsuite. To enable features of Netsuite go to Setup >

Company > Enable Features. Enable some feature as stated below.

Company

Classifications

√ Departments

√ Locations

√ Classes

Dashboards, BI, and Reporting

√ KPI Scorecards

Data Management

√ Inline Editing

√ File Cabinet

ERP General

√ Multiple Unit of Measure

Accounting

Basic Features

√ Accounting

√ A/R

√ A/P

√ Accounting period

Advanced Features

√ Expense Allocation

√ Revenue Recognition

√ Amortization

√ Multiple Budget

Transactions

Basic Feature

Enable all

Sales

√ Multiple Prices

√ Gross Profit

Shaping and Receiving

√ Advance Shipping

√ Pick, Pack and Ship

√ Shipping Level Integration

√ Advanced Receiving

Billing

√ Bill Costs To Customer

Payment Processing

√ Credit Card Payment

Items and Inventory

Items

√ Bar Coding and Item Label

Inventory

√ Inventory

√ Serialized Inventory

Note: Some feature may not present, so just move to the next feature.

Tab not shown should be set to the default value.

Rename Records/Transactions

In Netsuite you can customize the name of your records and transactions. Go to Setup >

Company > Rename Records/Transactions.

Rename the following field:

Name for Class: Product Lines

Leave everything as it is and then click <Save>.

Auto-Generated Numbers

The Set Up Auto-Generated Numbers page is where you choose to automatically number certain

records in the order they are created. You can also add prefixes and suffixes to certain

relationship records and transactions.

To generate auto number go to Setup > Company > Auto-Generated Numbers. Enter the

following as stated:

Entities

Enable Type Prefix Minimum Digits Initial No. Allowed

Override

Check Customer CU 5 10001 No

Check Employee EM 5 20001 No

Check Supplier SU 5 30001 No

Transactions

Type Prefix Minimum Digits Initial No. Allowed Override

Cash Sales CI 5 10001 No

Credit Memo CM 5 20001 No

Deposit DS 5 90001 No

Inventory Adjustment IA 5 90001 No

Invoice SI 5 40001 No

Item Fulfillment PS 5 50001 No

Item Receipt RR 5 60001 No

Journal JE 5 70001 No

Payment PV 5 90001 No

Purchase Order PO 5 30001 No

Return Authorization RA 5 90001 No

Sales Order SO 5 80001 No

Product Lines

Netsuite can breakdown company performance either by Product Lines or by Department. To add

product line go to Setup > Company > Classification > Product Lines > New and then create

the following Product Lines.

1. Food 3. Personal Care

2. Beverage 4. Footwear

ACCOUNTING SETUP

Accounting Pariod

To monitor and control status of account effectively accounting must be enabled. In NetSuite, one

accounting period is equivalent to one month of transaction.

To setup accounting period go to Setup > Accounting > Manage Accounting Periods and the

on the bottom right click <Setup Full Year>.

Then do the following steps:

1. Choose January in the First Fiscal Month.

2. In Fiscal Year End text box enter the current year.

3. Choose Calendar Month as Period Format.

4. Choose Ending Year of Period in Year End Period Name.

5. Check the One-Day Year-End Adj. Period.

6. Click <Save>

Chart of Account/Opening Balances

Setting up chart of account is one of basic step before making any transaction in netsuite. Each

account is assigned one account type. Account types are used to organize data in the master files

or registers and in financial reports.

In netsuite there is two type of account according to hierarchy namely, Parent and Child account.

The parent account is the main account while the child is the sub account. All accounts by default

is a parent account.

To setup chart of account go to Setup > Accounting > Manage G/L > Chart of Account.

Netsuite provides default account filled in the chart of accounts. You can edit them provided that

the account is not been used in any transaction. You can also add new account. To add new

account follow the following steps:

1. Click <New>

2. In account type choose Bank

3. In name type Cash in Bank

4. Click <Save>

To add new subaccount follow the following steps:

1. Click <New>

2. For Account type choose Bank

3. For the Name type PBB Checking #2342228

4. In the Subaccount field select Cash in Bank.

5. If you Cash in Bank does not appear, go to Setup > Accounting > Preferences >

Accounting Preferences. Then check the Expand Account List. Then click <Save>.

Then repeat the process except no. 5.

6. Click <Save>

Type Account Name Sub account Opening Bal. Done

Bank Cash in Bank

Bank PBO Checking #2342228 Cash in Bank Dr. 5,500,000.00

Bank CO Checking #3245690 Cash in Bank Dr. 7,330,200.00

Bank Petty Cash Fund Dr. 10,000.00

Accounts Receivable Accounts Receivable

Other Current Asset

Allowance for Doubtful

Account

Cr. 30,000.00

Other Current Asset Merchandise Inventory

Other Current Asset Prepaid Insurance Dr. 108,000.00

Other Current Asset Office Supplies Dr. 50.500.00

Fixed Asset Office Equipments

Fixed Asset

Accumulated Depreciation -

Office Equipment Office Equipments

Fixed Asset Delivery Truck

Fixed Asset

Accumulated Depreciation -

Delivery Truck Delivery Truck

Accounts Payable Vouchers Payable

Accounts Payable Income Tax Payable

Accounts Payable BIR Payable

Accounts Payable SSS Payable

Accounts Payable Pag-Ibig Payable

Accounts Payable Philhealth Payable

Accounts Payable Salary Payable

Long Term Payable Loan Payable

Equity EK, Capital

Equity EK, Drawing

Income Sales

Income Sales Discount Sales

Income Sales Returns and Allowances Sales

Other Income Interest Income

Cost of Goods Sold COGS

Cost of Goods Sold Inventory Variance

Expense Salary Expense

Expense Gas and Fuel Expense

Expense Repairs and Maintenance

Expense Depreciation

Expense Doubtful Account

Expense Internet Expense

Expense Rental Expense

Expense Transportation Expense

Expense Light and Water Expense

Expense Commission Expense

Expense Bank Service Charge

Expense Insurance Expense

Expense Supplies Expense

Expense Security and Janitorial Expense

Expense Interest Expense

Expense Taxes and Licenses

Expense Miscellaneous Expense

Accounting Preference

To control the flow of accounting management user interface accounting preferences must be set

first. To set accounting preferences go to Setup > Accounting > Preferences > Accounting

Preferences and change the value as stated:

NOTE: If not mentioned just leave it as it is.

General:

1. Expand Account Lists : Check

2. Aging Reports Used: Due Date

3. Require Approvals on Journal Entries: Uncheck

4. Allow Transaction Date outside of Posting Period: Warn

5. Allow Users to Modify Amortization Period: Check

6. Default Amortization Journal Date to: Last day of Period

Items/Transactions:

1. Purchase Discount Account: Cost of Goods Sold

2. Default Income Account: Sales

3. Default COGS Account: Cost of Goods Sold

4. Default Payment Account: PBB Checking #2342228

Order Management:

1. Default Sales Order Status: Pending Fulfillment

Click <Save>

Credit Card Processing

Customer may pay their purchases using credit cards. Credit card payment will be processed by

third party companies like Paypal and CyberSource. To setup credit card payment processing go

to Setup > Accounting > Payment Processing > Credit Card Processing and follow steps

listed below.

1. There are three companies listed the CyberSource, Merchant e-Solution and WorldPay.

2. Select Merchant e-Solution.

3. Name: Merchant e-Solution

4. Settlement Bank Account: PGT Checking #3245690

5. Payer Authentication: Check

6. Test Mode: Check

7. Profile ID: 94100008075000000021

8. Password: kYGnGnJLFGgitPSaBpRjlXZOWtJHuDvE

9. In the Supported Payment Methods select all by pressing Ctrl and then click.

10. Click <Save>

LISTS

Vendors List

To add vendor, go to Lists > Relationships > Vendors then click <New> and follow the steps

listed below:

1. Next to Type select Company.

2. In the Company Name field enter King’s Best.

3. Click the <Address> Tab Below and enter the necessary data.

4. In the Attention Field, Enter the name of your mother.

5. In the Addressee Field enter Mrs. (Your Family Name).

6. In the Phone field type 0822259990.

7. In the Address1 Field type 256 Washington St. and in the City Field enter your birth

place.

8. Then select Philippines in the Country field.

9. Click <Add/Edit Button>.

10. Lastly click <Financial Tab> to enter opening balance.

11. In the Legal Name Field enter KFI

12. In the opening balance field enter 50,500.00.

13. In the opening balance date enter August 1, 2013. Then click <Save>.

Add the following data in vendors list. Use your birth place in the City field. In the Attention

Field just enter any name you like.

Company Name Phone

Address 1 Legal

Name

Opening Bal.

Done

Grips Cola 082224-3390 28 Emerald Ave. GCBI 30,000.00

Pink Energy 082222-2233 21 Diamond Ave. PDI 20,500.00

Yammy Foods 082222-1122 34 Pacesetter Ave. YFI 96,700.00

Company D 082300-1333 67 Silver Ave. CDC 45,200.00

National Office Store 082234-6556 89 Edify Ave. NOI 23,400.00

Northern Motors 082221-0001 12 Crown Ave. NMC

Bureau of Internal

Revenue 082300-1444

33 Bonifacio St. BIR

Star Life Insurance 082255-5566 45 Luna St. SLII

City Treasurers Office 082222-1222 67 St. Peter St. CTO

Petty Cash Custodian

Social Security System 082234-1234 25 Laurel Ave. SSS

Pag-Ibig Funds 082221-1234 82 Laurel Ave. HDMF

Philippine Health 082224-4321 23 Quezon Ave. PHI

Customers List

To add customer go to Lists > Relationships > Customers then click <New> and follow the

steps listed below:

1. In the Custom Form field select Standard Client Form.

2. Next to Type select Company.

3. In the Company Name field enter Asai Convenience Store.

4. Click the <Address> Tab Below and enter the necessary data.

5. In the Attention Field, Enter Irene Surigao.

6. In the Addressee Field enter Miss Irene

7. In the Phone field type 0823001111.

8. In the Address1 Field type 28 Flores Vill. and enter Davao in the City Field

9. Then select Philippines in the Country field

10. Lastly click <Financial> Tab to enter opening balance.

11. In the Account Field enter Asai Corporation.

12. In the opening balance field enter 120,200.00.

13. In the opening balance date enter August 1, 2013. Then click <Save>.

Add the following data in customer list. Use your birth place in the City field. In the Attention

Field just enter any name you like.

Company Type Phone Address 1 Legal Name Opening Bal. Done

Irene Enterprise Company 0823001111 45 Pandakake St. Irene Surigao 45,600.00

Braga Minimart Company 0823002222 38 Bamboo Ave. Braga Corporation 35,900.00

Balms Sari-Sari Store Company 0822221122 456 WES Ave. Roderick Balmes 67,750.00

Amor Eatery Company 0823001111 67 Jambo Ave. Masbod and Co.

Lee Enterprise Company 0822211234 234 Senesio Ave. CLA Corp. 43,000.00

CJ Sari-Sari Store Company 0822221234 325 Banahaw St. CJ and Co.

Leanne Food Mart Company 0822342345 27 Cipres Ave. Lea Dela Cruz 24,000.00

Lags Store Company 0823051166 80 Donatello Ave. Heda Corporation

Abs Enterprise Company 0823001345 98 Luke Ave. Abao Incorporated

Alms Sari-Sari Company 0822221100 45 Samuel St. Joel Almasa 78,900.00

Iser Grocer Company 0823004567 21 Ezekiel Ave. Isreal Llanes 54,000.00

Wowee Store Company 0822032999 22 Pearl Ave. Ramon Golimlim

Rocs Barbeque Company 0823032211 38 Sheng St. Dennis Rocacurba

Henry Food Station Company 0822981234 68 LC Ave. Lopez and Lopez 20,000.00

Pids Store Company 0822991020 87 Eugenia St. Oriel pidor

Martero Food House Company 0822089999 121 Palm Ave. Tero Corporation 76,700.00

Bulan, Amie Individual 0980987890 23 Maligaya Ave.

Aclao, Norety Individual 0823490989 68 ELC Ave.

Abellanosa, Peter Individual 145 Platinum Ave.

Unit of Measure

The multiple unit of measure will enable you to classify different type unit used to purchase,

stock and sale products. To setup unit of measure go to Lists > Accounting > Units of Measure

> New. Follow the steps listed below:

1. In the Type Name field enter Case1.

2. In the Name column enter Bottle.

3. In the Plural Name column enter Bottles.

4. In the Abbreviation column enter Btl

5. In the Plural Abbreviation column enter Btls

6. In the Conversion Rate column enter 1.

7. In the Base Unit select Yes.

8. Then click Add.

9. Using steps 2 to 5 add another unit name Case and Pallet.

10. In the Conversion Column enter 12 for Case and 120 for Pallet.

11. Click <Add> and lastly click <Save>.

Add the following data in customer list. Use your birth place in the City field. In the Attention

Field just enter any name you like.

Type Name Name Plural

Name

Abbreviation Plural

Abbreviation

Conversion

Rate

Base

Unit

Case2 Bottle Bottles Btl Btls 1 Yes

Case Cases Cs Css 24

Pallet Pallets Plt Plts 480

Pack1 Piece Pieces Pc Pcs 1 Yes

Box Boxes Bx Bxs 100

Pack Packs Pk Pks 10

Pack2 Piece Pieces Pc Pcs 1 Yes

Box Boxes Bx Bxs 100

Pack Packs Pk Pks 20

Dozen Piece Pieces Pc Pcs 1 Yes

Dozen Dozens Dz Dzs 12

Box Boxes Bx Bxs 48

ITEM LIST

There are wide ranges of item records that can be created in Netsuite. The most common type of

item is Inventory Items, Non-Inventory Items and Services. Inventory items include those goods

for sale while non-inventory items include inventory not for sale such as Property Plant and

Equipment and inventory for sale such scraps.

Inventory Items

To setup item go to Lists > Accounting > Items > New. Follow the steps listed below:

1. Click <Inventory Item>.

2. In the Item Name Field enter Corny Cracker.

3. In the Unit Type field select Pack2.

4. In the Stock Units field select Pack.

5. In the Purchase Units field select Box.

6. In the Sale Units field select Pack.

7. In the Classification section, go to Product Line field and select Food.

8. Click <Purchase/Inventory> tab.

9. In the Costing Method select Average.

10. In the Purchase Price enter 200.00.

11. In the Purchase Description field enter “A delicious Corn Snacks”.

12. In the Quantity on Hand field enter 20.

13. Click <Sales/Pricing> tab.

14. In the Sales Description field enter “A delicious Corn Snacks”.

15. In the Base Price field enter 40.00.

16. Then click <Save>.

No need to set values in the accounting tab since this was already set in the accounting

preferences. The Web Store will be use later upon building company webpage.

Name Type

Field

SU PU SU Product

Line

Purchase

Price

Qty. on

Hand

Description Base

Price

Soft Cake Pack1 Pack Box Pack Food 350 28 Softy yummy cake 45.00

Biskitco Pack2 Pack Box Pack Food 250 33 Soda Biscuit w/

Phytonutrients

70.00

Cookie

Choco

Pack1 Pack Box Pack Food 350 40 Chocolate Bread 45

Nutri Orange Case2 Case Pallet Case Beverage 2,400.00 67 12oz Orange Juice 192.00

Yums Cola Case2 Case Pallet Case Beverage 2,400.00 34 12oz Cola 192.00

Nutri Mango Case2 Case Pallet Case Beverage 2,400.00 67 12oz Pineapple

Juice

192.00

Peak Energy

Drink

Case1 Case Pallet Case Beverage 1,440.00 26 200ml Energy

Drink

216.00

Peak Energy

Drink – Mint

Case1

Case Pallet Case Beverage 1,440.00 46 200ml Energy

Drink – Menthol

216.00

Fresh 100g Dozen Dozen Box Dozen Personal

Care

2,160.00 23 Toothpaste 100g 600.00

Fresh 200g Dozen Dozen Box Dozen Personal

Care

3,840.00 27 Toothpaste 200g 1,080.00

Protect Bar

Soap

Dozen Dozen Box Dozen Personal

Care

2,400.00 32 3 in 1 Soap 720.00

Protect

Shampoo

Dozen Dozen Box Dozen Personal

Care

3,360.00 37 2 in 1 Shampoo 960.00

Shipping List

If you sell product online it is common to include shipping charges.

To setup shipping charges go to Lists > Accounting > Shipping Items. Do the following steps:

1. In the Ship Name field enter Air23 Express.

2. In the Display Name Code field enter Air23.

3. In the Description Field enter Air 23 Express Fast delivery.

4. Click <Save>.

Fixed Assets List

Web Store

You can sale your products online using site builder feature of NetSuite. To build your web store

follow the steps listed below.

1. Go to Setup > Site Builder > Web Site Assistant.

Web Site Assistant helps non-programmer users to build webpage using step-by-step

procedure.

2. To setup your web address enter in the textbox provided your desired web domain.

Follow the instruction provided below the textbox. Then Click <Next>.

Your web address will be http://shopping.na1.netsuite.com/(yourdesriedaddress)

3. The appearance and logo setup let you define how your web page will look like. Select

your desired Web Site Theme.

4. Next, select your desired Web Site Color Theme.

5. In the Web Site Font field select “From Theme”.

6. In the Description Font Size field, enter “11”.

7. In the Title Font Size field, enter “16”.

8. You can also add Web Site Logo if you want. But for now just leave it blank. Click

<Next>.

9. Set up your Homepage appearance. Homepage is the first tab of your web site displayed

to the visitors.

10. In the Label field enter “Welcome to our Web Store”.

11. Enter your Greetings and Message in the space provided. Click <Next>.

12. Setup the Tabs that will appear to your webpage.

13. In the Label field enter “Products”.

14. Enter your Greetings and Message in the space provided. Click <Save and Create

Another>.

15. In the Label field enter “Contact Us”.

16. In the Greetings field enter “For Suggestions and Comments please Contact Us”.

17. In Message field enter your contact information. Click <Finish>.

18. Click <Preview Your Site>.

At this moment your web page has no product to sale.

19. To add products go to Lists > Accounting > Items.

20. Choose Yums Cola, click <Edit>.

21. Click Web Store Tab.

22. Check the Display in Web Store.

23. In the Page Title field enter “Beverage”

24. In the Web Store Display Name field enter “YUMs COLA”.

25. Add an Item Image both Display and Thumbnail. Download first Cola image from the

web.

26. Click Plus sign in the Item Display Image.

27. In the attach From field select Computer.

28. Click <Select File>, select your downloaded image. Click <Save>

29. At the bottom of the screen click Web Site Categories tab.

30. In the Site Categories Field select Products.

31. Click <Add>,

32. Go back to your web page.