This article is relevant if you are working with NetSuite’s Balance Sheets and you are finding that some account definitions are incorrectly rolled up into the Retained Earning Section.
Background
On a recent NetSuite OneWorld client implementation, we noticed that the Common Stock was hidden but buried within the Retained Earnings calculation. I believe I have seen this before a few years back but it is vague to me now. I am sure there is a reason behind this definition; but from our perspective, this is incorrect.
Addendum
After publishing this article, we discovered that NetSuite’s provided Retained Earnings account was renamed to Common Stock and that is what caused the presentation issue. The rest of the article is helpful in showing how to modify a Financial Statement layout. NetSuite’s default implementation is correct.
Modify the NetSuite Balance Sheet Financial Layout
To resolve the issue, I helped the client create their own custom Balance Sheet Layout. Here are the key steps assuming you understand NetSuite’s Financial Layout Tool:
- Modify the Retained Earnings Section and delete the row that contains the Common Stock definition. See image for better detail.
- Modify the Equity Section and modify the section criteria to remove the definition where the Account Name is not Common Stock. See image for better detail.
Marty Zigman
Holding all three official certifications, Marty is regarded as the top NetSuite expert and leads a team of senior professionals at Prolecto Resources, Inc. He is a former Deloitte & Touche CPA and has held CTO roles. For over 30 years, Marty has produced leadership in ERP, CRM and eCommerce business systems. Contact Marty to set up a conversation.
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