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 Kings 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.