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Companies implementing NetSuite need to load monthly historical financial statements and open transactions. This article will discuss the debits and credits in this process. This process is relevant for companies loading monthly net change entries (also known as monthly trial balances). This process is not needed if you are loading detailed transactions.
I will use a simple trial balance (TB) and accounts payable (AP) subledger example. Note that accounts receivable transactions work the same way. Below are two screenshots of a trial balance and AP subledger:
The first step is to load the TB as a journal entry. The journal entry would look like this:
Note the “IMPORT AP Vendor” on the Name field on the 2000-Accounts Payable line. Including the fictitious vendor on the AP subledger line will prevent the journal entry from hitting the AP subledger as a ‘No Vendor’ line. ‘No Vendor’ transactions cannot be cleared from the AP subledger. Hence, the fictitious vendor, which will net to zero if done correctly. This situation is what we want to avoid:
We want to avoid this because there is no way to clear out these transactions in NetSuite
After loading this entry, we are halfway complete. We can see the trial balance matches. However, if we ran an AP subledger, the report would look like this:
We need to load the individual subledger balances to pay these outstanding bills in NetSuite in February. Let's work through how we do this.
For Vendor A, Bill # 100, the amount outstanding on 1/31/2021 is $500, and the bill’s GL coding is 6050-Research & Development Expense. When we create a vendor bill in NetSuite, the system will automatically credit the 2000-Accounts Payable account. The user needs to decide where to code the bill’s expense. We don’t want to code this to 6050-Research & Development Expense because we would double-count the expense. Remember, we brought in the expense impact via our journal entry. Instead, we need to create a suspense account called "z6999 - OPENAP" for the expense side on all open accounts payable transactions.
Once we have loaded our open transactions, our TB and AP subledger should look like this:
On the TB and AP subledger, we can see that our AP balance is double what it should be, and the trial balance now includes a $1,500 debit balance for account "z6999 - OPENAP". The final step is to post a journal entry to reverse the $1,500 debit balance in"z6999 - OPENAP" and the $1,500 balance with the IMPORT AP Vendor in the 2000 Accounts Payable account. This journal entry will look like this:
Now, we can check our NetSuite trial balance and subledger and confirm that everything matches QuickBooks as we expected:
Finally, we can navigate to the IMPORT AP Vendor and “pay” the journal entries. Again, the balance should net to zero. The journals will be removed from the AP subledger once marked as paid. Then, we can deactivate the vendor. We should also validate that the "z6999 - OPENAP" account is zero. Deactivate the account.
This simple example explains how the debits and credits involved when loading the monthly trial balance and accounts payable subledger from QuickBooks to NetSuite. For more discussion on NetSuite data migration topics, see our data migration process page.