Reconciliation Bridge Broken Image by Karen from PixabayNetSuite has enhanced its reconciliation capabilities with the launch of NetSuite Account Reconciliation. The new solution will help standardize and automate their balance sheet accounts reconciliation. This will help strengthen internal financial controls and help organisations produce accurate financial statements faster. The solution will be available in the US in June 2023 and will roll out to other regions in 2023.

Gary Wiessinger, senior vice president NetSuite Application Development, Oracle NetSuite,
Gary Wiessinger, senior vice president NetSuite Application Development, Oracle NetSuite,

Gary Wiessinger, senior vice president NetSuite Application Development, Oracle NetSuite, commented, “The general ledger reconciliation process can be one of the most complicated aspects of the financial close and a compliance risk.

“Similar to how we are leveraging Oracle technology to deliver NetSuite Analytics Warehouse and NetSuite Planning and Budgeting, NetSuite Account Reconciliation brings enterprise-grade technology to our customers to simplify a critical process. This solution extends the capabilities of our suite to help customers increase efficiency, ensure the completeness and accuracy of their financial statements, and gain more value from NetSuite.”

NetSuite Account Reconciliation

The information about how this new solution works and what it will achieve is limited. NetSuite highlights that the solution is built on the Oracle Fusion Cloud Enterprise Performance Management (EPM) platform but is focused on the reconciliation abilities of this solution and not the full suite.

The solution will help organisations to reconcile financial transactions such as:

  • accounts payable
  • accounts receivable
  • bank and credit card transactions
  • prepaid accounts
  • accruals
  • fixed assets accounts
  • intercompany transactions
  • other balance sheet accounts

NetSuite Account reconciliation provides finance teams with a single location to view, analyse and manage their reconciliation processes. Users can compare balances, add notations, review and note and record sign-off dates. It allows finance to close period ends faster. Discrepancies are highlighted, enabling rapid action to resolve any issues.

Helping to accelerate this process are 20 prebuilt templates and formats that help finance teams automate their processes faster. The solution also seamlessly integrates with NetSuite ERP. It means that transactions do not have to be extracted from the ledgers but are matched in situ with audit trails and a sure document repository to ensure compliance and provide trusted information for audits.

For organisations with thousands of record, the solution included automated matching, though details of how complex the matching engine is and whether it leverages AI was not made clear.

Importantly the solution already has guardrails for internal control and compliance requirements. There are notifications during the period-end process to ensure it is not delayed. Overall the system will help organisations to close their periods ends even faster.

Rayburn Electric Cooperative tests it out.

Rayburn Electric Cooperative is a non-profit generation and transmission electric cooperative formed in 1979 by seven distribution cooperatives in Northeast Texas. The company obtains power from various places to maintain lower power costs for its Members. Renewables are a key part of Rayburn’s portfolio, including hydroelectric power from Denison Dam and various solar projects located within its territory.

Stephanie Hunt, corporate controller at Rayburn Electric Cooperative, an early adopter, commented, “To maintain competitive costs for power and help maximize the value of our members’ investment, we needed a system that could help make our financial operations more efficient and require less manual intervention and review.

“With NetSuite Account Reconciliation, we will no longer have to do manual balance sheet recons in Excel, which often cause delays, errors and headaches in our close process. By having a real-time and accurate view of our financial position, we will be able to empower our team to be more productive and focus on value-adding activities for our members and communities.”

Enterprise Times: What does this mean

NetSuite continues strengthening its financial solution, adding features from Oracle Fusion to supplement its strong financial application. This is a sensible move as it also means that as organisations grow, the transitions, should they wish to take it from NetSuite to Oracle, are simpler in some ways. This is not a new direction for NetSuite. In 2017 it added Oracle NetSuite Planning and Budgeting Cloud Service (PBCS), built on the Oracle Cloud financial planning solution.

However, the question that isn’t answered in the press release is the pricing for this solution. Also, what will it mean for software vendors such as FloQast and BlackLine with close management solutions. Also, how will it affect those with Accounts Payable solutions such as Tipalti that help with account reconciliation? While these solutions do more than just accounts reconciliation, organisations will benefit from automating this process to save time and costs within their accounts function.

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