This article is relevant if you are using NetSuite and need a consolidated trial balance with selective subsidiaries, including how to better explain period-to-period Cumulative Translation Adjustments (CTA).
Background
NetSuite provides a standard Trial Balance report, yet there are instances when comparative trial balances are necessary. My 2016 article, “How to Produce a NetSuite Trial Balance with Saved Searches,” continues to be widely valued and is as relevant today as it was nearly a decade ago. In that article, I offer complimentary financial searches to any NetSuite end-user upon request.
However, while beneficial, the saved search methodology may not meet the more intricate requirements of clients needing explanatory trial balances and general ledger activities. This article delves into our approach to addressing sophisticated accounting reporting needs, aiding multi-entity organizations in achieving deeper insights into their general ledgers.
Key Considerations for NetSuite Consolidated Subsidiary Trial Balance Reports
I wish to acknowledge the exceptional contribution of our Accounting Practice Leader, Meir Bulman (CPA), in aiding his clients with complex multi-entity, multi-currency, and Cumulative Translation Adjustment (CTA) challenges.
For organizations managing numerous NetSuite subsidiaries and intricate reporting structures, several critical issues emerge as Global Controllers work to finalize and close the books. The following are crucial scenarios necessitating enhanced reporting capabilities:
- Selective Consolidation in Trial Balances: While NetSuite provides a consolidated trial balance, it always includes all child subsidiaries. Why can’t there be a mechanism to select only the desired child subsidiaries for consolidation? This would allow for targeted analysis and summarization of specific entities of interest.
- Clarification of Cumulative Translation Adjustments (CTA): How can we segregate the variations in an entity’s balance sheet across periods and discern which portions of the CTA are attributable to changes in consolidated translation rates versus actual balance sheet transactional movements?
- Side-by-Side Comparative Period Trial Balances: Why is there no option to choose specific accounting periods and generate comparative trial balances side by side, facilitating a clearer understanding of the differences between these periods? How do we handle cross-fiscal period roll up mechanics?
- Delineating Multi-Book Variances: Why can’t a comparative trial balance report be generated to highlight the discrepancies between different NetSuite books defined by the multi-book functionality?
Our evaluation indicates that NetSuite’s Saved Search architecture’s current capabilities are inadequate for effectively addressing these issues. This is reasonable, as these questions are complex. However, there is an opening: NetSuite’s SuiteQL (SQL) functionality presents an opportunity to tackle these demanding reporting needs.
Harnessing NetSuite SuiteQL (SQL) with a Query Renderer
Meir has diligently crafted the precise NetSuite SQL required to generate a trial balance, facing the intricate challenges of spanning fiscal periods and dynamically aggregating into retained earnings as required. This breakthrough in SQL usage has empowered our firm’s analysts significantly. Yet, despite this advancement, NetSuite does not natively offer a straightforward method for end-users to access and utilize this sophisticated SQL work without more tools and know-how.
To bridge this gap, we provide our clients with a license-free NetSuite SQL Query Renderer tool, which I have elaborately discussed in my 2021 article, “Render NetSuite SQL Queries Like Saved Searches.” Utilizing the Trial Balance SQL, along with the closely associated General Ledger Activity SQL, Meir has integrated several filtering options. These enhancements substantially simplify the process for accounting departments reliant on NetSuite, enabling them to efficiently address the challenges highlighted in the preceding section.
Video Demonstration (6:31): NetSuite Consolidated Trial Balance with Selectable Parent and Child Subsidiaries
In the video below, Meir guides us through a streamlined demonstration of the Query Renderer in action, showcasing its capability to select a parent-subsidiary and subsequently choose child subsidiaries for consolidation. The latter half of the video features Meir explaining the SQL writing process, providing inspiration for other NetSuite power users who aspire to develop their own general ledger SuiteQL queries. The screenshot above illustrates the capability and highlights the flexibility we can offer users to meet demanding requirements.
Click here to load the video in a new window.
Get Advanced NetSuite Trial Balance and General Ledger Activity Outputs
The great news is that with the core NetSuite SuiteQL (SQL) to drive general ledger activity and summarized trial balances, we now have all we need to craft explanatory and comparative outputs that can easily be expressed, downloaded and consumed to help Controllers and other accounting professionals quickly answer NetSuite general ledger balance questions that otherwise are difficult and cumbersome to figure out. Like all the intellectual property we have created under our innovative LABS programs, we can accelerate a solution without our clients acquiring third-party tools and/or paying for additional software licenses. Our philosophy is to enhance the value of our clients’ investment in NetSuite through the creative and thoughtful use of the underlying enhancement platform while standing on 20+ years of client accomplishments.
If you found this article relevant, feel free to sign up for notifications of new articles as I post them. If you are ready to tackle your NetSuite trial balance reporting challenges once and for all, let’s have a conversation.
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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