Journal Entries Overview
Complete guide to creating and managing journal entries in NetSuite.
Journal Entry Types
JOURNAL ENTRY TYPES IN NETSUITE
═══════════════════════════════════════════════════════════════════════════════
┌─────────────────────────────────────────────────────────────────────────────┐
│ MANUAL JOURNAL ENTRIES │
│ (Created by Users) │
├─────────────────────────────────────────────────────────────────────────────┤
│ │
│ ┌─────────────────┐ ┌─────────────────┐ ┌─────────────────┐ │
│ │ Standard │ │ Intercompany │ │ Statistical │ │
│ │ Journal │ │ Journal │ │ Journal │ │
│ │ │ │ │ │ │ │
│ │ • Regular GL │ │ • Between subs │ │ • Non-monetary │ │
│ │ • Must balance │ │ • Auto-balance │ │ • Single-sided │ │
│ │ • Any accounts │ │ • Elimination │ │ • KPIs/Metrics │ │
│ └─────────────────┘ └─────────────────┘ └─────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────────────────────┐
│ SYSTEM-GENERATED JOURNALS │
│ (Created by NetSuite) │
├─────────────────────────────────────────────────────────────────────────────┤
│ │
│ ┌─────────────────┐ ┌─────────────────┐ ┌─────────────────┐ │
│ │ Revenue │ │ Amortization │ │ Expense │ │
│ │ Recognition │ │ Journal │ │ Allocation │ │
│ │ │ │ │ │ │ │
│ │ • Rev schedules │ │ • Prepaid exp │ │ • Cost center │ │
│ │ • Deferred rev │ │ • Fixed assets │ │ • Overhead │ │
│ │ • Milestones │ │ • Intangibles │ │ • Shared costs │ │
│ └─────────────────┘ └─────────────────┘ └─────────────────┘ │
│ │
│ ┌─────────────────┐ ┌─────────────────┐ ┌─────────────────┐ │
│ │ Period End │ │ Elimination │ │ System COGS │ │
│ │ Journal │ │ Journal │ │ Adjustment │ │
│ │ │ │ │ │ │ │
│ │ • Close income │ │ • Intercompany │ │ • Cost recalc │ │
│ │ • Retained earn │ │ • Consolidation │ │ • Read-only │ │
│ │ • FX revalue │ │ • Auto-balance │ │ • Costing eng │ │
│ └─────────────────┘ └─────────────────┘ └─────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────────┘
Journal Entry Topics
| Topic | Description |
|---|---|
| Standard Journal Entry | Regular GL adjustments, accruals, corrections |
| Intercompany Journal | Transactions between subsidiaries |
| Statistical Journal | Non-monetary data tracking |
| System-Generated Journals | Revenue recognition, amortization, period end |
| Recurring & Reversing | Memorized entries and auto-reversals |
Quick Reference: Journal Entry Types
| Type | Balanced? | GL Impact? | Manual/Auto | Key Use |
|---|---|---|---|---|
| Standard | Yes | Yes | Manual | Adjustments, corrections |
| Intercompany | Yes | Yes (both subs) | Manual | IC transactions |
| Statistical | No | No | Manual | Non-monetary metrics |
| Revenue Recognition | Yes | Yes | Auto | Deferred revenue |
| Amortization | Yes | Yes | Auto | Prepaid, depreciation |
| Period End | Yes | Yes | Auto | Close period |
| Elimination | Yes | Yes | Auto | Consolidation |
| System COGS | Yes | Yes | Auto | Cost recalculation |
Best Practices Summary
Do's
| Practice | Benefit |
|---|---|
| Use descriptive memos | Easier audit trail |
| Reference source documents | Traceability |
| Use reversing entries for accruals | Cleaner next period |
| Review before posting | Prevent errors |
| Use memorized entries | Consistency |
Don'ts
| Avoid | Why |
|---|---|
| One-sided entries | Must balance (except statistical) |
| Vague memos | Hard to audit |
| Backdating without approval | Period integrity |
| Manual entries for transactions | Use proper transaction types |
| Deleting posted entries | Use reversing instead |
Related Topics
- GL Flow Map - Complete GL impact reference
- Bank Flow - Bank-related transactions
- Cost Engine - Costing at period end