Transaction Processing and Financial Operations
This domain tests the operational flow of order-to-cash and procure-to-pay in NetSuite, including when each step hits the general ledger, how payments are applied, and how tax, inventory, and approvals affect posting. Expect questions on invoices, payments, deposits, vendor bills, bill payments, credit memos, and fulfillment GL impact.
Core flows
- Order-to-cash: Sales Order (non-posting) -> Item Fulfillment (posts inventory and COGS when configured) -> Invoice (posts A/R, revenue, and tax) -> Customer Payment (debits Undeposited Funds or bank and credits A/R) -> Deposit (moves Undeposited Funds to bank).
- Procure-to-pay: Purchase Order (non-posting) -> Item Receipt (posts inventory and accrued purchases) -> Vendor Bill (posts expense or asset and A/P, and clears accrued purchases) -> Bill Payment (debits A/P and credits bank).
- A customer deposit is a liability until applied to an invoice. A credit memo reduces A/R or creates a customer credit. A vendor credit reduces A/P.
- Tax codes create separate tax payable or receivable lines. Revenue recognition can split an invoice between deferred revenue and recognized revenue; the recognition schedule posts later.
- Multi-currency payments can create realized gain or loss when the payment rate differs from the invoice rate.
Worked example
An invoice totals $11,000: $10,000 revenue plus 10% sales tax. The posting is debit Accounts Receivable 11,000; credit Revenue 10,000; credit Sales Tax Payable 1,000. If the related fulfillment cost $6,000, it posts debit Cost of Goods Sold 6,000 and credit Inventory 6,000 - not the invoice, unless COGS posting is configured there. The customer pays the invoice: debit Undeposited Funds 11,000; credit A/R 11,000. The bank deposit then debits Bank and credits Undeposited Funds. A/R is cleared only when payment is applied; the bank changes at deposit.
Traps
Applying a payment to a sales order instead of the invoice; expecting a sales order to post revenue; confusing a customer deposit with a payment; omitting the tax code; paying a bill before matching the receipt; posting COGS twice; ignoring exchange differences.