NETSUITE PROJECT

Module 2: Order to Cash

Objectives
In this module, you will walk you through the Revenue Cycle (Order to Cash)

o Customize transaction forms

o Create a sales order

o Approve the order

o Fulfill the order and create a packing slip

o Bill the order and create an invoice

o Process a payment receipt

• Complete a hand-in homework assignment at the end of this tutorial.

If you make a mistake in this training environment, you may back out or delete your work or simply start over again.

The deliverable for this module is to upload to Canvas a copy of this

document with all questions answered and the four documents from
NetSuite. Answer all questions using red font.

Customizing Transaction Forms to Show Company Name

In this exercise, you will customize some of your forms and reports so that they correctly display your company
name, logo, and address in the heading.

1. Navigate to Customization > Forms > Transaction Forms. The Custom Transaction Forms page opens.

2. Click on the Type column header to sort the forms in alphabetic sequence by Type.

3. Scroll down the list and find all the forms with the Purchase Order form type.

4. Locate the preferred Purchase Order form, this is the purchase order form that is check box selected in
the right column. In other words, this will be the default form when creating a new Sales Order document.
 5. Click the Customize hyperlink for the Purchase Order Form. The Custom Transaction Form page
opens. This will create a new form named Purchase Order 2. For Printing Type, select the BASIC button as
shown. For the LOGO, select the name of the image you uploaded as your company logo. Make sure the
FORM IS PREFERRED box is checked:

6. Select the Printing Fields tab and Header subtab to display a list of fields to be printed at the top of the sales order
form.
7. Verify that the following fields are checked:

 Company Name
 Company Logo
 Company Address

8. Click the Save button.

9. Perform this same process to verify the company name, logo, and address are printed in the headings of the
following forms:

 Invoice Form (Type: Invoice)

 Packing Slip (Type: Packing Slip)
 Sales Order (Type: Sales Order)
 Customer Payment (Type: Payment)

4 – 1: Requiring Sales Order Approval

In this step you will configure the default settings so that each Sales Order created by a Salesperson, will require manager approval.
This is an example of a company-specific “business rule.” Depending on the company, it may be required that all sales are subject to
credit approval based on the customer’s credit history or other factors. This is typically a setting which is configured once and rarely
changed.

1. First, we need to update the profile of a new customer. Navigate to Lists > Relationships > Customers > search for Antalis Group
and click “Edit”. On the Financial tab, enter 3,000 into the credit limit field. Save.

2. Navigate to Setup > Accounting > Accounting Preferences. The Accounting Preferences page displays.

3. Select the Order Management tab. In the Sales Orders section set the following parameter.

• Default Sales Order Status: Pending Approval. This option specifies that all sales orders must be approved before they can
be fulfilled.
 4. Click the Save button.

4 – 2: Creating Sales Order

Now, you are about to sell some product to this customer. You have just received the following sales order from them. Note: the
customer calls this document a purchase order while we, as the vendor, call this a sales order. In this exercise, you are the
salesperson, and you will enter this sales order into your NetSuite account.

1. Navigate to Transactions > Sales > Enter Sales Orders. The New Sales Order page opens.
2. Enter or select the following information:

• Customer: Antalis Group

• Date: 12/25/2023
• Leave the default value for the sales Order #.
• CUST PO #: 345. This is the customer’s purchase order number.
• Terms: 1% 10 Net 30 (found under the Billings tab)
• Location: UK-1
• Sales Rep: Will O Clark

3. On the Items tab, enter the following information:

• Item: MSi GP 62 15.6 Gaming Laptop i7-6700HQ 2.6 GHz

• Quantity: 6
• Price Level: Base Price Rate is automatically set at $714 each
• Tax Rate: 0.0%
• Click the Add button to add the items.

An error message appears: “Customer balance of $XXXXX.XX exceeds credit limit of 3,000.00.” What threat does checking the
customer’s credit limit mitigate?
Answer: to limit the threat of default. Company will not want to sell product that excess the amount that customer can pay
back.

Click OK on the error message to accept the credit limit notification. You checked with the Credit Manager and he/she approved
an override because the credit limit for the Customer should have been $30,000 instead of $3,000. Where did NetSuite look to find
information necessary to perform the automated credit check? (Hint: We learned about Master and Transaction files in Romney
Chapter 2. Which type is this? There are likely several files of this type in the database. Which one specifically is this?).
Answer: NetSuite will look into the customer master file to check for customer credit limit.

Notice NetSuite populated the quantity on hand and available fields. Where did these values NetSuite pre-populated on the Sales
order come from? (Hint: We learned about Master and Transaction files in Romney Chapter 2. Which type is this? There are
likely several files of this type in the database. Which one specifically is this?).
Answer: NetSuite pre-populated the quantity on hand and available fields from inventory master file.

Enter “and” in the Qty field and hit Tab. Note the error message displayed by NetSuite “Invalid number.” What type of data input
control is NetSuite enforcing here?
Answer: field check

What threat does this control mitigate?

Answer: this control mitigates the threat of entering the improper type of data.
 4. When your sales order is complete, click the Save button. The Sales Order page opens showing your new sales order. Note
that the Order Total is $4,284 and the status in the upper left corner is Pending Approval.

5. Click the Print icon to see a PDF of your sales order. You do not need to print out the sales order for this tutorial. However, you
will print a PDF of sales order for your assignment at the end of this module.

6. If you need to print out this sales order at a later time, you can access it by going to Transactions > Sales > Enter Sales
Orders > List and selecting your sales order from the list. If you don’t see your order, re-sort one of the column headers. A
faster method would be to select your sales order from the Recent Records portlet on your Dashboard.

4 – 3: Approving Sales Order

In this exercise, you are the credit manager, and you will check the customer’s credit before approving your sales order.
1. Navigate to Transactions > Sales > Approve Sales Orders. The Approve Sales Orders page opens.

2. Locate your sales order on the list and click the Date link. The Sales Order page opens. (An alternate method would be to
navigate to the Recent Records portlet on your Dashboard, select (do not edit) your sales order.)

3. On the sales order, click the Antalis Group customer link. The Customer page opens.

4. On the Financial tab, check the following:

• The Credit Limit should be larger than the Balance that the customer owes. So select edit and change the credit limit to
$35,000 and click Save.

5. Return to the Sales Order page by clicking Transactions > Sales > Approve Sales Orders and click on the Date link next to
the sales order.

6. Since this customer seems to be credit worthy, click the Approve button for the sales order.

7. Note the status of your order is now Pending Fulfillment.

8. Next click on the Fulfill button. Does NetSuite does not allow you to fulfill an order without an approval? What internal control
procedure is NetSuite enforcing here?
Answer: No, shipping clerk is a person to do fulfill job. The internal control that NetSuite enforce is
segregation of duties to ensure the orders are not approved and shipped all by the same person
4 – 4: Fulfilling a Sales Order and Creating a Packing Slip

In the previous exercises you created and approved a sales order. In this exercise you are the shipping clerk, and you will fulfill the
sales order. This means that you will pick, package, and ship the items for this sales order. You will also create the packing slip that is
included with the shipment.

1. Navigate to Home page and click on the sales order that you created and approved in 4 – 2 and 4-3.

2. Click the Fulfill button. Under the Process column click Fulfill. A New Item Fulfillment page opens for this sales order.

3. Confirm the following:

 In the Items tab, 6 gaming laptops are to be shipped.

 Date is 12/28/2023
 4. Click on the Mark Packed button then click on the Mark Shipped button. Click the Print icon to create the Packing Slip. You do
not need to turn in this pdf.

5. Navigate to Home page and click on the sales order that you created and approved in 4 – 2 and 4-3. What is the status of the sales
order now?
Answer: pending billing

4 – 5: Billing the Sales Order and Creating an Invoice

In the previous exercises, you created a sales order, approved the customer credit, fulfilled (packed), created a packing slip, and
shipped items to your customer. In this exercise, you are the accounts receivable manager and you will bill the sales order. This
means that you are going to approve the sales order to be invoiced and a credit will be posted to sales and a debit posted to accounts
receivable.

1. Navigate to Transactions > Sales > Invoice Sales Orders. The Invoice Sales Orders page opens.

2. Find your sales order and click on the Date link. The Sales Order page opens.

3. Click the Next Bill button. The Invoice page opens. Change the Date to 12/28/2023 and make sure the posting period is Dec
2023.

4. Click the Save button to create the invoice. You may get an error message about no tax period being set up. If so follow step 5.
Otherwise skip to step 7.

5. Go to Setup then click Accounting then click Manage Tax Periods. Scroll down and see that there is no FY2023 Q4 tax
period. Click New Quarter Only, name is Q4 2023, then check the IS POSTING check box, set the Start Date to 10/1/2023
and the End Date to 12/31/223 and change the SUB-PERIOD OF field to FY 2023.

6. Navigate back to the sales order and click the Next Bill button. The Invoice page opens. Change the Date to 12/28/2023 and
make sure the posting period is Dec 2023. Click the Print icon to create the Invoice. You do not need to turn in this pdf.

7. Navigate to Home page and click on the sales order that you created and approved in 4 – 2 and 4-3. What is the status of the
sales order now?
Answer: billed
4 – 6: Accepting Customer Payment
In this exercise, you are the cashier, and you will accept a customer payment and create a receipt. This will debit the checking
account and credit accounts receivable. Assume you have received a check by mail from Antalis Group for $4,241.16 ($4,284 -
$42.84 discount) as they have paid within 10 days. You will apply the payment to the open invoice created from the previous step.

1. Navigate to Transactions > Customers > Accept Customer Payments. The New Payment page displays.

2. Click on the double arrow by the Customer field and select 53 Antalis Group.

3. Change Date to 12/31/2023 and Account to 1025 Cash: UK Checking.

4. On the Apply tab enter the following information:

 Payment Amount: 4,284.00
 Check AUTO APPLY check box
 5. Scroll down to the Invoices area enter the following information: The APPLY checkbox for the invoice that you created in the
previous exercise should already be selected.
• Enter Disc. Taken of 42.84

6. Click the Print icon to create the Payment Receipt. Generate the PDF of the payment receipt. You do not need to turn in this
pdf.

7. The status of the Payment is now Deposited.

Module 2: Assignment
Use your NetSuite account to perform the following transactions for your company. This is an individual assignment. This is not a
group project. Your work is your own.

1. A customer has sent you a sales order for your products and services. Create a sales order in NetSuite using the following
guidelines:

• Customer: 16 Aspen Technologies

• Customer PO #: S400
• Location: US-1
• Date: 12/29/2023
• Enter one inventory item in the ITEM tab (make sure it is an item the company has is stock and it is not a service item). The
quantities are your choice. Use the base price (no discounts). Change TAX CODE to Not Taxable
• Verify that your customer has both a billing and a shipping address. If necessary, enter new addresses (you can make up the
addresses). You may get a payment method error if the customer has a credit card on file. Removing the payment
method will fix this.

2. Generate a PDF of your sales order to submit to your instructor. This should be an official sales order printed from the PDF file
showing your company name, address, logo, customer, etc.

3. Perform the proper steps to approve your sales order.

4. Perform the proper steps to fulfill your sales order. Only your inventory items will appear on the Item Fulfillment page. Since
service items are not physical inventory they are never shipped. Generate a PDF of your packing slip to submit to your
instructor.

5. Bill your sales order for the same date the order was received and generate a PDF to submit to your instructor.

6. The customer called the following day and submitted an electronic check for payment in full of the invoice created
in step 5. Accept the customer payment. Generate a PDF your payment receipt to submit to your instructor. This
should be an official invoice printed from the PDF file. Again, if you get a payment message about a credit card,
change the payment method. You may sign out of your NetSuite account. This is the end of Module 2.

You will submit four PDFs: Your sales order should Your packing slip should have
have  Your logo image or your company name and
 Your logo image or your company name and address
address  Same Order # as sales order
 Customer Bill To name and address  Same customer name and address as sales order
 Customer Ship To name and address  One inventory item and quantity
 Customer PO # is S400
 One inventory item
 No sales tax

Your invoice should have Your payment receipt should have

 Your logo image or your company name and
address  Your logo image or your company name and
 Same billing and shipping name and address as address
sales order  Same billing customer name and address as sales
 One inventory item order
 Same quantity and amounts as sales order  Reference to your Invoice #
 No sales tax  Total amount of invoice
 No sales tax