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:
|1101||100.00||ABC Vendor, 9/15/2018, #3456|
|1101||150.00||DEF Vendor, 9/15/2018, #3459|
|1101||250.00||GHI Vendor, 9/15/2018, #3599|
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!
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