What is the NetSuite Adjustment-Only Books feature, and why would you use it? Let’s get a quick look at this feature and how to set it up in your NetSuite account.
Overview of NetSuite Adjustment-Only Books
NetSuite’s Adjustment-Only Books feature allows organizations to make financial adjustments for reporting purposes without impacting the primary accounting record. When this feature has been enabled for an account, users will record daily transactions in the primary, or base, accounting book. Then, at the period close, they will record any necessary adjustments in the adjustment-only book.
Adjustment-only books are different from a typical secondary accounting book. For one thing, adjustment-only books do not count toward your accounting book limit. In addition, you are not limited to having only one adjustment book per base book. At the end of an accounting period, a secondary book will be compiled for reporting purposes based on both the base book and the book-specific journal entries that were entered for the adjustment-only book.
Setting Up NetSuite Adjustment-Only Books
To set up this feature, you’ll first need to turn it on in Enable Features. You’ll find this feature under the Multi-Book Accounting section under the Accounting tab in Enable Features. This feature is only available for accounts that use NetSuite OneWorld. Adjustment-only books cannot be used for subsidiaries that are not on the related base book, and the effective period for both the base book and the adjustment-only book must be the same.
Creating a NetSuite Adjustment-Only Book
To create an adjustment-only book in NetSuite, navigate to Setup > Accounting > Multi-Book Accounting > Accounting Books > New and select New Accounting Book.
While creating the adjustment-only book, you’ll name the book and select the associated subsidiaries. If you select a parent subsidiary, then any child subsidiaries will be included. You’ll need to check that the Adjustment Only checkbox has been checked and that the Base Book dropdown list has your desired primary accounting book. Once a base book has been selected, the Effective Period field will be populated for your adjustment book based on the effective period of the base book.
Once you’ve created an adjustment-only book according to your needs, save the record. You’re now all set to start recording adjustment JEs. If you enjoyed this blog, be sure to subscribe below to our newsletter to keep learning more about key NetSuite features like this one.