Journal Entry Types

We have had a few of our clients ask about the types of Journal Entries in Netsuite. In this blog post, we'll delve into seven distinct types of journals within NetSuite, each designed to handle specific financial scenarios.

System Generated Journals

• • These are read-only entries representing general ledger impact.

  • Example: A Depreciation Entry generated from Asset details in FAM forms.

Advanced Intercompany Journals

• • Entries between two or more subsidiaries, with one originating and one receiving.

  • Multiple originating and receiving subsidiaries are possible.

  • Currencies are selected for each to create financial impact.

  • Example: Recording the purchase of Product X by a subsidiary from the parent company.

Amortization and Expense Allocation Journals

• • Automated entries following amortization and allocation schedules. 

  • These are system generated JEs.

  • Transfer balances from expense accounts to others.

  • Example: Distribution of one-time common cost over 12 months.

Revenue Recognition/Reclass Journals

• • Enabled by the Advanced Revenue Management module.

  • These are system generated JEs.

  • Dependent on revenue recognition schedules to recognize revenue over time.

Statistical Journals

• • Enabled with the Statistical Accounts feature.

  • Single-sided transactions by class, department, location, or custom segment.

  • Non-posting Journal Entries without financial impact.

  • Example: Tracking the head count of employees in the hire-to-retire cycle.

Book Specific Journals

• • Enabled with Multi-Book features.

  • Each company maintains two books, covering the parent and subsidiaries.

  • Allows booking specific journal entries and related intercompany entries.

Manual Journals

• • Used for accommodating and adjusting changes not dependent on system-filled information.

  • Hand-filled or uploaded in CSV format into the system.

Understanding the diverse range of NetSuite journals empowers finance professionals to navigate the complexities of financial transactions efficiently. Hopefully this quick overview assists in identifying the types of common JEs.