A typical data migration request is importing historical sales into NetSuite. The benefit of having this in NetSuite is a complete view of historical sales by customer and item. It eliminates the need to merge NetSuite and the legacy system reports. Below, I discuss three approaches for bringing this data into NetSuite.
Note that in all three approaches, I would recommend creating a custom field to indicate that the transaction is from the legacy system. This simple addition makes it easy to identify historical transactions from live transactions.
Import historical sales as closed purchase orders
Importing historical sales as a closed purchase order is the easiest way to import this data. Purchase orders are non-posting transactions, meaning they don't impact the financial statements. Non-posting transactions reduce the complexity of the migration significantly compared with the other two approaches. This approach's downside is that purchase orders and sales transactions are treated differently on NetSuite's native reports. The standard reports will need to be customized to include any historical sales loaded as a closed purchase order, which can be done with the custom field noted above.
intheBlk consulting completed this approach with a furniture reseller that brought us in two-weeks before their go-live. We moved two-years of historical sales from QuickBooks Desktop to NetSuite.
Import historical sales as a cash sale transaction and reverse the GL impact
Importing historical sales as cash sale transactions adds complexity to the data migration. Here are the steps:
- Add the opening inventory balances for inventory items. NetSuite will prevent a cash sale from being posted if you have a negative inventory balance.
- Import the cash sale transactions. Make sure the posting account is the undeposited fund account.
- Reverse the undeposited funds by the customer to clear out the open balance on the customer's account.
- Reverse the GL impact of steps 1-3 with a journal entry. Create a saved search with the GL impact above and flip the debit and credit amounts.
- Ensure the TB is zero after completing steps 1-4.
This approach's benefits are that NetSuite includes cash sale transactions in all the native sales reports. The downside is this approach is complicated and has required several imports.
intheBlk consulting completed this approach with a retail client moving from QuickBooks Desktop to Netsuite, importing over 200,000 transactions over five years.
A full transaction import, which includes the sales history
The final option is importing your full GL history, which would include the sales history. This approach is the most complex but gives you the complete customer history, including sales, payments, and credits. This approach (as of March 2021) will not work with companies tracking physical inventory but will work with companies that use non-inventory items. The benefit to this approach is obvious – the full transactional history is in NetSuite. The downside is this approach is complicated and only works with specific clients.
intheBlk consulting completed this approach with a SaaS organization that acquired another company. The acquiring company wanted the full history imported from the acquired company's QuickBooks Online file after the acquisition date. intheBlk was able to import 10-months of transactions for the client.
All of these approaches require a strong understanding of your legacy data and how to import transactions into NetSuite. intheBlk consulting has the expertise and tools to complete this process for you. Contact us today to find out more.