Netsuite is a cloud-based ( ERP ) enterprise resource planning software. One of the essential aspects of Netsuite is Netsuite inventory adjustment which is used for several reasons in businesses such as Accurate Inventory Tracking, Financial Accuracy, Better decision-making, Auditing, Compliance, etc.
NetSuite inventory adjustment
NetSuite inventory adjustment is a part of NetSuite that helps businesses to increase or decrease the quantity of inventory for accurate tracking and reporting. Additionally, it helps companies to reconcile any discrepancies between recorded inventory levels and the actual quantities of inventory on hand.
Netsuite provides you with an option through which you can write a memo or reason for inventory adjustment and that information can be used to explain the purpose behind the inventory adjustment.
Overall, NetSuite inventory adjustment is a feature inside NetSuite that is designed to help businesses by maintaining accurate inventory records, reconciling discrepancies, and ensuring financial accuracy. It helps in better decision-making through inventory adjustment and compliance with auditing and regulatory requirements.
Purpose of inventory adjustment
The two common purposes of inventory adjustment in Netsuite are:
1. Inventory record: inventory adjustment in Netsuite enables the business to accurately record the inventory level and reconcile any discrepancies between the recorded and actual inventory level.
2. Financial decision: With the help of inventory records businesses can maintain the accurate cost of goods sold (COGS), inventory valuation, and financial statements which help in making informed financial decisions.
Performing a NetSuite Inventory Adjustment
Here are 7 steps to perform an inventory adjustment in NetSuite:
Step 1: Accessing the Inventory Adjustment Form:
Log in to your NetSuite account and navigate to the 'Transactions' menu. Under the 'Inventory' sub-menu, select 'Adjust Inventory' to open the Inventory Adjustment form.
Step 2: Selecting the Adjustment Account:
In the Inventory Adjustment form, specify the account to which the adjustment should be posted. This account represents the general ledger account that will reflect the value of the inventory adjustment.
Step 3: Choosing the Adjustment Date:
Enter the adjustment date to ensure an accurate recording of the adjustment in the NetSuite system.
Step 4: Location and Subsidiary Selection:
Choose the specific location and subsidiary for which you want to perform the inventory adjustment.
Step 5: Adding Inventory Items:
Add the items for which you want to make adjustments. You can either manually enter the details of an item or use the search functionality to locate specific items.
Step 6: Specifying the Quantity Adjustments:
Indicate whether the adjustments will be made in value or quantity. Enter the adjustment quantity for each item, specifying whether it is a decrease or increase. You can also provide a memo or reason to explain the reason for the adjustment.
Step 7: Reviewing and Submitting the Adjustment:
Double-check the adjustments made, ensuring accuracy in item quantities and amounts. After that, save the adjustment as a draft or submit it for approval.
How do I import inventory adjustments in NetSuite?
Here are 8 steps to import the inventory adjustment in NetSuite:
1. Prepare the Inventory Adjustment Data:
• Collect the inventory adjustment data in a format that can be imported into NetSuite. You can do this through spreadsheet programs like Microsoft Excel or Google Sheets.
• Ensure that the data consists of all the essential information for each adjustment, such as the item name or SKU, adjustment value, adjustment quantity, adjustment date, and any other additional details.
2. Format the Data for Import:
• Open the spreadsheet which includes the inventory adjustment data and review the column headers to check they match the corresponding fields in NetSuite's import template or CSV file format.
• Adjust the data in the correct column order and format according to NetSuite's import requirements.
3. Access the NetSuite Import Assistant:
Log in to your NetSuite account and go to the Customization menu.
Click on SuiteBundler, then click Search & Install Bundles.
In the Bundle Name/Number field, enter "Import Assistant" and click Search.
Locate and install the "Import Assistant" bundle if it's not already installed.
4. Create an Import Map:
• Go to Customization > SuiteBundler > Search & Install Bundles and click Import Assistant.
• Click Create Import Map and provide a name for the map.
• Select the record type as "Inventory Adjustment."
5. Map the Fields:
• On the Field Mapping tab, map the fields from your spreadsheet to the corresponding fields in NetSuite's inventory adjustment record.
• Keep in mind that the columns in your spreadsheet are correctly matched with the appropriate fields, such as item, date, quantity, value, and any additional fields you need to import.
6. Save the Import Map:
• Click Save to save the import map configuration.
7. Import the Inventory Adjustments:
• Go to Lists > Import > Import CSV Records.
• Select the inventory adjustment import map you created in the Import Assistant.
• Click Choose File and select the formatted spreadsheet file containing the inventory adjustment data.
• Click Next and if required follow the prompts to review the mapping and perform a test import.
• After that, click Import to import the inventory adjustments into NetSuite.
8. Verify Imported Adjustments:
• when the import is complete, review the imported inventory adjustments in NetSuite.
• Check the inventory quantities, values, dates, and any other relevant details to ensure that there are not any kind of errors on it.
Related Searches:
1. What are inventory adjustments?
The process of modifying the quantity or value of an inventory is known as inventory adjustment. This process is used to reconcile any discrepancies between the recorded value and the actual value of inventory.
Inventory adjustment can be done for a single item or multiple items. In this businesses can increase or decrease the amount of the item or their price according to their requirements.
2. NetSuite inventory adjustment gl impact
The GL impact of NetSuite inventory adjustments consists of the changes to the Cost of Goods Sold (COGS) account, Inventory Asset accounts, etc. A decrease in inventory can increase COGS and the business Inventory Asset account is affected by the increasing or decreasing inventory. A Netsuite Adjustments account can be used to track gains or losses in business. NetSuite creates journal entries ( GL ) and maintains an audit trail for transparency and accountability.
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