SAS99 Audit Considerations in NetSuite

SAS99 Audit Considerations in NetSuite

Introduction

One of the most complex aspects auditors go through every year is the review of all General Ledger impacting transactions for fraud and error. This is part of the Statement of Auditing Standard 99 (SAS99) and is a required step for all financial audits – both for public and private companies.

One of the audit procedure is to understand the source of the journal impacting transactions and whether it is considered as system generated or not. Typically manual journals are considered high risk and are specifically included in this review. System generated journals that have adequate internal controls are not generally included in this review.

Given the complexity involved in NetSuite, we thought we will build a guide that auditors and auditees can use to understand the nature of these transactions.

GL Impacting Transactions

We have given the list of most common transactions in NetSuite below. Please click on Next to review the complete list. Following are the explanation on each column

  • Cycle – Order to Cash, Procure to pay, Inventory, etc.

  • Impacts GL – Whether this transaction type impacts GL or not. For example, a Purchase Order is not a GL impacting transaction.

  • How to identify In UI – If the specific transaction is being reviewed on the UI(User Interface – Browser), how to identify this transaction. For example, for a fixed asset journal, a custom sub-list contains the parent fixed assets details. In many other cases, the header of the journal itself provides this information. For example, in case of revenue recognition journal, the header will state ‘Created from Revenue Recognition Schedule’.

  • Not Locked (Lock) – This is a critical aspect that an auditor needs to be aware. For example, for a fixed asset journal entry, although the journal is created through the fixed assets module, the amounts could be modified. Hence, unless a workflow based lock is enforced, there is a risk of subsequent change. Anything with Y requires additional workflow to lock them.

  • Source – The specific process that creates this entry.

  • Type – While creating a saved search to extract the data, what is the Type of the transaction that should be included to get this data? For example, a revenue reclassification entry will be of type journal and does not have its own type.

  • How to identify In Search – In a saved search including this field will help in identifying the source of a transaction.

  • Created by –As seen, sometimes the user name will be System while sometimes it will be the logged in user.

Cycle
Source
Impacts GL
Type
How to identify In UI
How to identify
in Search
Not Locked
Created by
GLCurrency RevaluationYesCurrency RevaluationRounding Gain/Loss and
Unrealized Gain/Loss
Transaction type: Currency RevaluationNASystem
GLJournalYesJournalHeader: JournalTransaction type: JournalYesLogged in user
GLAmortization scheduleNoNANANANALogged in user
GLAmortization journalYesJournalCreated from Amortization ScheduleCreated from: Type = Amortization ScheduleNoSystem
ManufacturingAssembly BuildYesAssembly BuildHeader: Assembly BuldTransaction type: Assembly Build; Created from: WO number.NALogged in user
ManufacturingInventory TransferYesInventory TransferHeader: Inventory TransferTransaction type: Inventory TransferNALogged in user
ManufacturingInventory AdjustmentYesInventory AdjustmentHeader: Inventory AdjustmentTransaction type: Inventory AdjustmentNALogged in user
ManufacturingInventory Cost RevaluationYesInventory Cost RevaluationHeader: Inventory Cost RevaluationTransaction type: Inventory Cost RevaluationNALogged in user
ManufacturingAssembly UnbuildYesAssembly UnbuildHeader: Assembly UnbuildTransaction type: Assembly UnbuldNALogged in user
ManufacturingBin TransferNoNANANANALogged in user
ManufacturingTransfer OrderYesItem Shipment and Item ReceiptItem Shipment and Item Receipt,
with Created From Transfer Order transaction
Transaction type: Item Shipment and item Receipt
created from Transfer Order transaction
NALogged in user
ManufacturingWork OrderNoNANANANALogged in user
ManufacturingWork Order IssueYesWork Order IssueHeader: Work Order IssueTransction type: Work Order IssueNALogged in user
ManufacturingWork Order CompletionYesWork Order CompletionHeader: Work Order CompletionTransaction type: Work Order Completion;
Applying to Transaction = Work Order number
NALogged in user
Order to CashCustomer DepositsYesCustomer DepositsHeader: Customer DepositTransaction type: Deposit
GL line impact: Customer Deposits
NALogged in user
Order to CashSales OrderNoNANANANALogged in user
Order to CashInvoiceYesInvoiceHeader: InvoiceTransaction type: InvoiceNALogged in user
Order to CashItem FulfillmentYesItem FulfillmentHeader: Item Fulfillment
Status: Shipped
Transaction type: Item Fulfillment;
Applied to Transaction : Sales Order Number
NALogged in user
Order to CashPaymentYesPaymentHeader: Payment
Line: Applied to Invoice/s
Tranaction type: Payment
Applied to Transaction: Invoice
NALogged in user
Order to CashCredit MemoYesCredit MemoHeader: Credit MemoTransaction type: Credit MemoNALogged in user
Order to CashCustomer RefundYesCustomer RefundHeader: Customer RefundTransaction type: Customer Refund
Applying Transaction: Credit Memo
NALogged in user
Order to CashReturn AuthorizationNoNANANANALogged in user
Order to CashReturn ReceiptsYesItem ReceiptHeader: Item Receipt;
Created from: Return Authorization
Transaction type: Item Receipt
Created from: Return Authorization Transaction #
NALogged in user
Order to CashCash SaleYesCash SaleHeader Cash SaleTransaction type: Cash SaleNALogged in user
Order to CashCash RefundYesCash RefundHeader: Cash RefundTransaction type: Cash Refund
Created From: Cash Sale Transaction
NALogged in user
Order to CashRevenue commitment/ Revenue ArrangementNoNANANANASystem
Order to CashRevenue scheduleNoNANANANASystem
Order to CashRevenue JournalYesJournalHeader: Journal
Status: Created from Revenue Recognition Schedule
Transaction Type: Journal
Memo: Rev Rec Source and Rev Rec Destination
Applied to Transaction: Reveneue Arrangement #
No* lines and amount cannot be changed.Logged In User;
Context: Bulk Processing
Order to CashRevenue reclassificationYesJournalHeader: Journal
Details:
"Reclassification Journal Details"
Transaction Type: Journal
Applued to Transaction/Created From: Revenue Arrangement #
YesLogged In User;
Context: Bulk Processing
Order to CashFinance ChargeYesInvoiceHeader: Finance ChargeTransaction Type: Invoice
Memo: Finance Charge
NALogged in user
Order to CashCommissionYesCommissionHeader: CommissionTransaction Type: CommissionNASystem
Order to CashStatement ChargeYesStatement ChargeHeader: Statement ChargeTransaction Type: Statement ChargeNALogged in user
Procure to payPurchase OrderNoNANANANALogged in user
Procure to payBillYesBillHeader: BillTransaction Type: BillNALogged in user
Procure to payBill PaymentYesBill PaymentHeader: Bill Payment
Apply Subtab: Applied to Bill #
Transcation Type: Bill Payment
Applied to Transaction: Bill #
NALogged in user
Procure to payExpense ReportYesExpense ReportHeader: Expense ReportTransaction Type: Expense ReportNALogged in user
Procure to payItem ReceiptYesItem ReceiptHeader: Item Receipt
Created from: Purchase Order Transaction #
Transaction Type: Item Receipt
Applying to transaction/Created From: Purchase Order #
NALogged in user
Procure to payBill CreditYesBill CreditHeader: Bill Credit
Created From: Bill #
Transaction Type: Bill Credit
Applying to transaction/Created From: Bill #
NALogged in user
Procure to payVendor Bill varianceYesJournalHeader: Journal
Status: APPROVED FOR POSTING VENDOR BILL VARIANCE
Transaction Type: Journal
Memo: Total Bill Variance/Bill Quantity Variance
Applied to Transaction: Bill
No* lines and amount cannot be changed.Logged in user
Procure to payLanded CostYesCan be: in PO, Item Receipt, Vendor BillsLanded Cost subtabMemoNALogged in user
Fixed AssetsCreationNoNANANANALogged in User/System
Fixed AssetsTransferYesJournalSubtab:
Custom - Fam Depreciation History
Tranasction Type: Transfer
Type: Journal
FAM Depreciation History
Memo: with FAM number
YesSystem
Fixed AssetsDepreciationYesJournalSubtab:
Custom - BG Summary Records
Custom - Fam Depreciation History
Tranasction Type: Transfer
Type: Journal
FAM Depreciation History
Memo: with FAM number
YesSystem
Fixed AssetsAdjustmentYesJournalSubtab:
Custom - Fam Depreciation History
Tranasction Type: Revaluation/Writedown
Type: Journal
FAM Depreciation History
Memo: with FAM number
YesSystem
Fixed AssetsRetirementYesJournalSubtab:
Custom - Fam Depreciation History
Tranasction Type: Disposal
Type: Journal
FAM Depreciation History
Memo: with FAM number
YesSystem
BankingWrite ChecksYesChecksHeader: CheckTransaction Type: CheckNALogged in user
BankingTransfer FundsYesTransferHeader: TransferTransaction Type: TransferNALogged in user
BankingWrite DepositsYesDepositsHeader: DepositTransaction Type: DepositNALogged in user
BankingUse Credit CardsYesCredit CardHeader: Credit CardTransaction Type: Credit CardNALogged in user
BankingPay Sales TaxYesSales Tax PaymentHeader: Sales Tax PaymentTransaction Type: Sales Tax PaymentNALogged in user

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By | 2019-05-03T10:49:15+05:30 April 30th, 2019|Categories: Blog, NetSuite|0 Comments

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