Use NetSuite to Reconcile Legacy Vendor Payments

Use NetSuite to Reconcile Legacy Vendor Payments

Use NetSuite to Reconcile Legacy Vendor Payments

By on January 29, 2019

NetSuite Implementation: How to Migrate Uncleared Vendor Payments

All organizations, regardless of size or market segment, face the same issue during their NetSuite implementation: Your vendors received your check 6 weeks ago and for whatever reason, they have not deposited it into their bank, so it has not cleared your bank.

Of course, uncleared checks were not part of your migration. You took pains to migrate open AP, and your AP balance, but now what to do with a pile of uncleared checks as you try to close the books on the period and the migration? The solution is relatively straightforward.

Let’s assume that your last closed period in the legacy system was September. You migrate all open AP as of 9/30. After reconciling the migration you will want to reconcile the bank accounts. Each account may have one or several outstanding vendor payments.

Let’s assume you have you have open checks as follow in account 1101 and your balance (after posting these checks) is $100,000.

  • #3456      $100
  • #3459      $150
  • #3599      $250

 

You’ll want to create and post a JE as follows:

AccountDRCRMemo
1101  100.00ABC Vendor, 9/15/2018, #3456
1101  150.00DEF Vendor, 9/15/2018, #3459
1101  250.00GHI Vendor, 9/15/2018, #3599
1101  500.00

 

After posting this JE, you would go to your reconciliation and each line of the JE would be shown individually.  You’d also see the Memo from the JE in the reconciliation so you would know the Check # and Vendor (the memo is up to you but vendor name/date/check # usually is good).  You would reconcile all of the Journals there now plus the JE line above for $500 – and your reconciled balance should be $100,500 due to the 3 open checks.  The 3 checks would each be a separate line in the bank rec that you can clear at a later date.

 

The image below depicts the line of the JE:

 

The lines of the JE will then show up on the bank reconciliation, as below:

 

Migration is not an easy process for the implementation team, and by far the finance migration is the most difficult as it requires diligence and care to succeed. Once the NetSuite GL reconciles with legacy you can turn your attention to the bank reconciliation.

For more information on NetSuite or how to reconcile legacy vendor payments, contact Keystone today!

Keystone. Your Chicago-land on-demand software solution and integration provider.

Call – 866­-546-­7227 | Email – info@keystonebusinessservices.net

Tom is a Consultant for Keystone Business Services. Tom has implemented Oracle ERP systems from 1996 to 2004, for organizations as diverse as Kelly Services, The NCAA and William Beaumont Hospital. In 2005 Tom decided to take a risk on a new idea - Software as a Service - and he started to implement NetSuite for small and medium businesses. His clients over the last 12 years include the full range of business models that have found the solution for the unique processes in NetSuite: Project based service companies, warehouse and distribution, e-commerce, light manufacturing, software and subscription sales and of course the hybrids that include all of the above. Tom is a Certified NetSuite Consultant. Tom graduated from the University of Michigan and holds an MBA - Information Systems from Wayne State University. He authored "NetSuite OneWorld Implementation," still for sale at Amazon.com. Besides his work with clients, Tom enjoys woodworking and an occasional round of golf. Tom and his wife live in a timber frame he cut in Northern Michigan.