# Reconciliation Best Practices ## Cheat Sheet: Reconciliation Best Practices in NetSuite Migrations #### **The Foundation of Good Reconciliation: Data Load** The basis for a successful reconciliation process is a solid data load. Ensuring that your data is properly mapped and loaded is critical to minimizing discrepancies and ensuring accuracy. For a smooth reconciliation, make sure you have the following: 1. **Mapping Sheet for the Chart of Accounts (COA):**\ Create a mapping sheet with the **old COA** and the **new COA**. This should include the **internal database identifier**, **account number**, and **account name** for both systems. 2. **Opening Balances Loaded with External ID:**\ Use the **external ID** as the **line unique key** from the source system when loading opening balances. 3. **Customers and Vendors Loaded with External ID:**\ Ensure that **customers** and **vendors** are loaded with an external ID that matches the **line key** from the source system. *** ### **Exporting Data from NetSuite for Reconciliation** There are two main options for exporting data from NetSuite for reconciliation purposes: *** #### **1. Export Using NetSuite Financial Reports** This option presents the financial data in a format that is consistent with NetSuite’s financial statements. Finance staff may find this approach easier to digest, as it closely resembles the standard financial reporting layout. **Benefits:** * The reports are presented in a familiar format, which can make them easier for finance teams to review. **Considerations:** * **Customize the financial reports** to include the **Internal ID** for each account. This makes matching records in Excel, using VLOOKUP or similar functions, much easier. * Use **Excel formulas** to sum and match balances between the source and NetSuite. * Be cautious of the **polarity of accounts**. Some accounts may show a positive balance in the financial reports, while they should be negative (or vice versa). This can happen when asset balances are incorrectly assigned to liability accounts, so make sure to correct for this during reconciliation. Example Reconciliation Sheet *** #### **2. Export Using Saved Searches** Another option is to create **saved searches** in NetSuite to extract the necessary data for reconciliation, such as **trial balances**, **open AR/AP transactions**, or other transactional data. Saved searches allow for more granular control over the data. **Benefits:** * Saved searches can be tailored to your exact needs and can include fields that aren’t available in standard financial reports, such as **Internal IDs** and **transaction-level details**. **Example Saved Searches for Reconciliation:** * **Trial Balance:** Generate a saved search that captures account balances for each period. * **Open AR/AP Balances:** Use saved searches to capture all open receivables and payables to reconcile with your legacy system. * **Transaction-Level Data:** For detailed reconciliation, saved searches can export each transaction, allowing for a line-by-line match with the source system. *** ### **Key Reconciliation Best Practices:** #### **1. Reconcile in Phases** Break your reconciliation process into clear phases. Start with high-level accounts like **opening balances**, **accounts receivable (AR)**, and **accounts payable (AP)** before moving to more complex areas like **inventory** or **deferred revenue**. **Steps:** * Reconcile **balance sheet accounts** first to ensure assets and liabilities match. * Move on to **P\&L accounts**, ensuring the year-to-date balances match those in your legacy system. *** #### **2. Use Reports for Validation** Use NetSuite’s built-in reports and saved searches to validate data. Running reports during and after data load helps identify discrepancies early. **Steps:** * Run **Trial Balance reports** and compare them to your legacy system. * Use **Aging Reports** for AR and AP to validate outstanding balances. * Set up **saved searches** to compare transaction-level data between systems. *** #### **3. Reconcile Customer and Vendor Balances** Once AR/AP data is loaded, verify that customer and vendor balances match the legacy system. External IDs will help tie these transactions to the correct records. **Steps:** * Reconcile **AR/AP reports** in NetSuite with those from the legacy system. * Check that customer and vendor balances match and use **external IDs** to track any discrepancies. *** #### **4. Validate Transactional Data by Line Item** For more detailed reconciliation, use the **line unique key** from your source system to track individual transactions, especially for multi-line entries. **Steps:** * Use **transaction detail reports** in NetSuite to compare each line item with the source system. * Verify that each line is posted to the correct account and that no discrepancies exist. *** #### **5. Document Discrepancies and Adjust as Needed** Discrepancies are inevitable. Document these as they arise and adjust your data, mapping, or processes to ensure everything reconciles correctly. **Steps:** * Keep a log of any discrepancies and categorize them by type (e.g., incorrect account mapping, missing transactions). * Adjust transactions or update mapping sheets and import scripts to fix recurring issues. *** ### **Summary of Best Practices:** * Start with a **good data load**, using external IDs and a solid mapping sheet. * **Reconcile in phases**, starting with the balance sheet and moving through AR/AP and P\&L accounts. * Use **reports and saved searches** to validate data. * Track line items with **external IDs** for detailed reconciliation. * **Document and adjust** as needed to resolve discrepancies. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://netsuite-data-migration-guide.fowlersconsulting.co.uk/best-practices/reconciliation-best-practices.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.