Flexibility of fiscal year definitions in NetSuite is just one example how it is the leading cloud ERP for financial accounting.
A fiscal year can be defined with one of three period formats that are out-of-the-box:
- Calendar Months
- 4 Weeks
- 4-4-5 Weeks
While there is much familiarity with calendar months, which can be used to define a fiscal year aligned (or not) to a calendar year, 4 Weeks and 4-4-5 Weeks are period formats that are common to industries sensitive to having a fiscal period begin and end on the same days of the week. As can be derived by its label, the 4 Weeks period format is used to produce 13 4-week periods, whereas the 4-4-5 Weeks period format enables quarterly reporting of 4, 13-week periods.
Some organizations that have more than one legal entity may have differing fiscal start dates among them. This is supported by NetSuite through its OneWorld offering, which provides the functionality needed to support multi-entity organizations. With common base periods defined, all entities can be supported on the same close schedule regardless of when their fiscal years begin and end.
Year-end adjustments can be applied two different ways: to the last period of the fiscal year or to a one-day, year-end adjustment period. The latter is an option that can be enabled when defining fiscal years.
All of the available options for configuring fiscal years in NetSuite are combined to ensure an easily manageable general ledger that improves the efficiency of the period-close process in a multi-entity environment.
Contact RSM at email@example.com or by phone at 855.437.7202 to ensure that you are getting the most out of your NetSuite solution. RSM is a nationally recognized NetSuite Solution Provider with more than 30 years of ERP implementation experience.
By: Tom Bardwil – Illinois NetSuite Solution Provider