Maximizing Revenue Alignment with GL Lines in NetSuite

Problem Statement

Our client’s current process involves generating a Cash Sale in NetSuite before item fulfillment. This causes errors in financial reports. There is also the premature creation of Cash Sales results in misallocated revenue and deferred revenue entries. This affects the accuracy of pending fulfillment amounts and revenue realization tracking.

What We Suggested

Our team proposed a solution to optimize the revenue handling process and enhance financial accuracy by utilizing custom GL lines within NetSuite’s General Ledger plugin. 

Our experts recommended generating Cash Sales only after the fulfillment of items. This approach ensures precise alignment between financial entries and order progression. It accurately reflects revenue in the client’s records. 

•Utilization of Custom GL Lines: Incorporate custom GL lines within NetSuite. This directs sales amounts to the appropriate accounts based on fulfillment status. 

•Timely Revenue Allocation: Generate Cash Sales only after the fulfillment of items to accurately reflect revenue realization in financial reports. 

•Systematic Adjustment: Implementing a systematic process to reduce deferred revenue and credit the sales account upon creation of fulfillment records, ensuring accurate financial representation.

Challenges

Implementing this solution posed several challenges, including:

•Technical Integration: Ensuring stable integration of custom GL lines within NetSuite’s existing infrastructure. 

•Data Accuracy: Accurately tracking fulfillment statuses and transferring corresponding financial entries effectively.

Customer Success

Upon implementation, our client experienced significant improvements in financial accuracy and reporting efficiency: 

•Enhanced Financial Clarity: Accurate alignment of financial entries with order progression provided clearer insights into revenue realization.

•Improved Reporting: Removal of premature Cash Sales led to more accurate financial reports and insights.

•Better Revenue Management: Accurate revenue managing process improved efficiency and reduced manual errors. 

Key Achievements: 

•Improved financial accuracy by 80% 

•Enhanced reporting insights

Way Forward

With this customization, revenue handling and allocation become easier. We deliver customizations that meet and exceed our customers’ expectations. Our innovative solutions for revenue classification and sales insights enhance the overall customer experience. 

Are you looking to improve revenue allocation strategies in your business? Do you need more efficient finance management in your business processes? Contact us today to simplify your operations.