The GL Audit Numbering feature in NetSuite allows NetSuite users to ensure their financial compliance and control. Here’s a step-by-step guide on how to set up and use this feature, including a detailed look at the process of creating custom GL audit numbering sequences. Let’s get started!

What is GL Audit Numbering in NetSuite?

Many companies that use NetSuite will set up advanced transaction numbering. When this numbering is set up in an account, the numbering for each transaction type progresses sequentially based on the rules you create.

So, for example, the first bill payment recorded in your account might be numbered something like VB0001, while the second would be VB0002, etc. Other posting transactions (like invoices) would similarly be numbered in sequence (e.g., INV0001, INV0002, etc.).

In the General Ledger, then, these transactions appear with their original transaction numbers instead of receiving new, sequential GL numbers. But for some countries, sequential GL numbering is a compliance requirement.

This is where the GL Audit Numbering feature comes in.

With this feature, you are able to set up rules for GL numbering sequences. As a result, at the end of each accounting period the transaction numbers in your General Ledger will be seamlessly connected to one another, with no gaps between numbers.

In other words, no matter what transaction numbers have been assigned to transactions in a given period based on their type, once a GL audit numbering sequence has run on that period, each transaction receives a new number that directly follows the number for the previous posting transaction, even if the two transactions are different types.

How to Set Up GL Audit Numbering in NetSuite?

Getting the GL Audit Numbering feature set up in NetSuite takes just a bit of prep work.

First, you’ll need to enable the feature. You can enable this feature on the Basic Features section of the Accounting tab in Enable Features. The Accounting Periods feature on this tab should also be enabled.

Second, you need to decide whether or not you want to use GL Impact Locking. You can turn on this preference either on the Company Information page or (for companies with OneWorld) on the subsidiary record.

NetSuite GL Impact Locking

The GL Impact Locking preference is important because it ensures that no historical GL data is lost even if a posting transaction is changed at a later date. When this preference is enabled, two journal entries (a copy of the original and an adjustment entry) will be automatically created. These entries can be viewed on the GL Impact tab of transactions.

Note, however, that you will need to run the GL audit numbering sequence first in order for GL Impact Locking to generate the copy and adjustment entries.

How to Create GL Audit Numbering Sequences?

That leads us to the next step of GL audit numbering: creating the GL audit numbering sequences.

There are a couple different ways you could create a new sequence. First, you can create a GL audit numbering sequence directly from the period close checklist. On the checklist, selecting the GL Audit Numbering task will take you to the GL Audit Numbering Sequence page.

Alternatively, you could access this page by navigating to Transactions > Management > GL Audit Numbering Sequences > New. 

Let’s look at how you would create a sequence on this page.

Primary Information

First, fill in the fields in the Primary Information section of the page.

NetSuite GL Audit Numbering Sequence - Primary Information

To begin with, you’ll name the sequence and choose the posting period for this sequence. It’s helpful if the name can easily be traced back to the posting period. Then, choose the subsidiaries where this sequence will be applied.

The best practice would be to select one subsidiary per sequence, but you can use the shift and control/command keys to select multiple subsidiaries.

Then, you can choose the numbering type. There are two options: repeatable and permanent. A repeatable numbering sequence is one you can run as often as you need to. The GL numbers for transactions might change each time the sequence runs.

One benefit of using a repeatable sequence is that when GL impacting transactions are deleted, you don’t lose the gapless numbering sequence for your transactions. You would just need to run the sequence again.

The permanent numbering type, as the name suggests, ensures that the number assigned to each transaction after the sequence runs will stay the same. To avoid gaps in the numbering sequence for transactions that are edited or deleted, then, you would want to use the GL Impact Locking preference we’ve already looked at.

The Accounting Book dropdown field allows you to connect an accounting book to this sequence. And finally, the checklist Exclude Zero Amount Transactions allows you to restrict this sequence to transactions that have values above zero.

Numbering

The Numbering section on the GL Audit Numbering Sequence page allows you to set your preferred numbering rules.

NetSuite GL Audit Numbering Sequence - Numbering Rules

As with advanced transaction numbering, you can include both a prefix and a suffix for the GL transaction numbers. This would be similar to the INV prefix for invoices or the VB prefix for vendor bills.

You can also choose the minimum number of digits for the numbers in this sequence, although this is optional. If this field is left blank, then the first number will be 1. However, if you set the minimum number of digits to 4, then the first number would be 0001.

By default, the number of the initial transaction in the sequence will be 1, but you can change it if you wish.

And finally, in this section you can also decide how transactions will be ordered using the Order By dropdown field. The two options here are to order them by Transaction Date or Transaction Entry Date.

Recurring

The final section on this page is the Recurring field group.

NetSuite GL Audit Numbering Recurring

In this section, you can schedule your numbering sequence to run on a recurring basis if you chose Permanent in the Numbering Type dropdown. Of course, if you do not want your permanent sequence to run on a recurring schedule, you can always choose the No Recurring option in the Recurring Type dropdown field.

The two recurring types are hourly and daily. Once you choose the type you want, you’ll have more scheduling options available under the Hourly Recurring and Daily Recurring fields. You’ll also be able to select a time under the First Run Time field for the initial sequence run to take place.

After you have created and saved this record, the Next Run field will display the date and time of when this sequence will run again.

NetSuite GL Audit Numbering Sequence Recurring - Next Run

How to Use GL Audit Numbering in NetSuite?

After you create sequences, how would you use them? How can you run sequences? How would you view and interpret the results of a sequence run? Let’s take a look.

Eligible Transactions

First, you can see which transactions are even eligible for GL audit numbering by navigating to Transactions > Management > GL Audit Numbering Sequences > Review. On this page, you can filter to an accounting period to see all the transactions for that period that the numbering sequence would apply to.

NetSuite GL Audit Numbering Review

Running a Sequence

Recurring permanent sequences will keep running on the schedule you set for them, but what if you want a sequence to run outside of its scheduled time? To run a sequence, whether or not it’s scheduled, you’ll navigate to Transactions > Management > GL Audit Numbering Sequences > Run.

Then, select a period type (Year, Quarter, or Base Accounting Period) and choose one of the available open periods for that period type. You’ll see a list of any available GL audit numbering sequences for your selected period. Select the sequence, and then hit the Run button.

You can also run sequences from the sequence itself. To do that, select the Run button while viewing the sequence.

Viewing Results

How would you view the results of a sequence run? After running a numbering sequence, you’ll be taken to the GL Audit Numbering Status page. You can also get to this page by navigating to Transactions > Management > GL Audit Numbering Sequences > Status. Under the Status column for any listed sequence runs, select Complete. This will take you to the GL Audit Numbering report page.

On this page, you can view the results of your sequence run. In these results, you’ll see things like the GL numbering sequence that was applied, the original document numbers, the new GL numbers, and the accounting period each transaction belongs to.

NetSuite GL Audit Numbering Report

Conclusion

With the GL Audit Numbering feature in NetSuite, you can be sure that your company is maintaining financial compliance. 

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