NetSuite Multi-Book for Refined Subsidiary Financial Reporting
Money Transfer | UK
Do you wish to explore NetSuite's Multi-book? This feature is all about storing your data or accounts in separate books. It allows businesses to maintain different sets of financial records all in one place. This makes it easier to follow various accounting rules and manage finances smoothly.
So, to enable this feature and utilize its benefits, we received a request to do the same. But what might be the exact reason to enable this feature? Let us have a look at it in detail.
Problem Statement
Our client faced problems while presenting consolidated financial data in USD because they used GBP as the subsidiary currency. To meet regulatory requirements, they must provide accurate information to government and tax departments in USD. Downloading financial reports manually and calculating USD values take a long time and can have mistakes in currency conversion.
This is because the client has multiple global subsidiaries. They sought a solution to address these challenges.
What We Suggested
Our experts suggested NetSuite Multi-book to automate currency conversion and keeping separate books for accounts in different subsidiaries. This feature creates multiple books within the system, each holding financial data based on the criteria we have set.
Specifically, we suggested creating two books. One maintains the existing reports in GBP and another holds the same reports in USD. The new USD book contains comprehensive data, including balance account information and financial reports spanning the past two years.
The key recommendations include:
1.Implementation of NetSuite Multi-book feature.
2. Creation of secondary book which holds financial data in USD.
3. Moving the data through NetSuite Historical Transaction Processing (HTP) method.
4. Comprehensive data inclusion for the USD book covering the past two years’ financial transactions.
Challenges
Create a new subsidiary without using the multi-book function is an option. However, this approach poses challenges as consolidating rates vary among reports. This is because of the conversions between two or more levels, taking an average among the amounts.
The ‘Unexpected Errors’ listed in the NetSuite ‘System Information’ section during the data transfer remain unresolved. We need to retransfer the entire dataset as the process has become stuck.
Requirements for Enabling NetSuite Multi-Book
NetSuite supports up to 4 Multi-books, offering flexibility to set different criteria. For instance, one book will have subsidiary-specific details. Another one includes the trial balance and other account reports.
While many may consider enabling the NetSuite Multi-book feature a good option, is it that easy to avail? Here are the requirements to enable the NetSuite Multi-book feature.
• One needs the help of NetSuite Professional Services or a Multi-book authorized partner for the implementation (NetSuite Partner Multi-book authorization certification).
• NetSuite account should be OneWorld.
• Users should have access to a NetSuite Sandbox environment.
Customer Success
Automating currency conversion not only removed manual efforts in downloading and calculating USD values but also enhanced the accuracy of financial reports. The new USD reports helped our client to easily provide government and tax departments with precise and timely information. They were able to minimize the risks of errors linked to manual data handling.
Key Achievements
• Doing away with manual effort in currency conversion.
• Improved accuracy and reliability of financial reports.
Way Forward
The NetSuite Multi-book feature is highly useful if you have multiple subsidiaries with vendors dealing in different currencies. This feature takes away any worries about consolidated financial reports. It also provides you with a clear and organized book to check your accounts when sharing information with third parties.
Are you dealing with multiple subsidiaries using different currencies? You need to have separate books for your financial data. Enable NetSuite Multi-Book for efficient account keeping. The team of experts at Jobin & Jismi is ready to assist you and provide complete guidance. Feel free to reach out to discuss your specific needs.
