Chart of Accounts

Loading the Chart of Accounts in NetSuite

When setting up your Chart of Accounts (COA) in NetSuite, there are several fields that you need to configure for each account. Below is a guide to the most common fields you’ll encounter, along with advice on how to approach setting them.

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Key Fields for Setting Up Accounts

1. Account Number

When setting up your Chart of Accounts (COA) in NetSuite, it’s recommended to align your numbering system with the NetSuite standard where possible. This provides consistency and improves reporting clarity.

NetSuite’s default numbering system assigns four-digit account numbers as follows:

• 1xxx: Asset accounts

• 2xxx: Liability accounts

• 3xxx: Equity accounts

• 4xxx: Income accounts

• 5xxx: Cost of Goods Sold (COGS) accounts

• 6xxx: Expense accounts

• 8xxx: Other Income accounts

Working with your finance team to agree on a structured numbering system that fits your business needs is crucial. Following these guidelines helps maintain standardisation across accounts and enhances the overall efficiency of your financial reporting.

2. Name

• Advice: Enter the name of the account. If renaming a built in account, make sure you don't change the meaning of the account!!!

3. Subaccount of

• Advice: If the account is a subaccount of another parent account, select the parent account here. This helps in creating a hierarchy within your COA, useful for reporting purposes.

4. Type

• Advice: Set the type of account (e.g., Income, Expense, Asset, Liability). This field is crucial because it affects how transactions are posted to the account and how they appear in financial reports.

5. Currency

• Advice: Leave this field blank unless you are creating a bank account. For bank accounts, set the specific currency in which that account operates. Non-bank accounts should not have a currency set unless you need to restrict them to one currency.

6. General Rate Type

• Advice: Leave the default value as it is. This field is related to exchange rates, and in most cases, the default value works perfectly.

7. Revalue Open Balance for Foreign Currency Transactions

• Advice: Only tick this option for balance sheet accounts that hold balances in a foreign currency that you need to revalue at the end of each month. Examples include:

  • Accounts Receivable (AR)

  • Accounts Payable (AP)

8. Subsidiary

• Advice: Except for bank accounts, select the parent subsidiary and tick the "Include Children" checkbox so the account is available to all subsidiaries. For subsidiary-specific accounts like bank accounts, select the specific subsidiary.

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Required Account to Create

• 999999 Opening Balance Migration

  • Advice: Create this account as a clearing account to handle the migration of opening balances. This account will be used temporarily to hold balances during the migration process.

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NetSuite's Built-In System Accounts

NetSuite provides a number of built-in system accounts by default, such as the default AR and AP accounts. While these accounts are necessary for the system to function, you can rename or renumber them to fit your company’s accounting structure and policies. However, make sure that:

• You maintain the same account type (e.g., leave the AR account as a "Accounts Receivable" type).

• The account’s meaning and use remain consistent with the system requirements.

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By following these steps, you’ll ensure that your Chart of Accounts in NetSuite is well-structured and aligned with your company’s financial reporting needs. This approach helps create clarity and maintain consistency across the organization.