How to prepare bank deposits in NetSuite?

Want to know how to prepare bank deposits in NetSuite? In this article, we explain the step-by-step process for the creation of Bank Deposits.

Oracle’s NetSuite has introduced a banking solution that is recognized for its distinctiveness in utilizing open banking principles, with the aim of increasing the operational efficiency and cost savings of businesses. This solution helps NetSuite customers to streamline financial transactions and improve their banking relationships.

What are the benefits of NetSuite Banking offering as a service?

Bank integration for NetSuite was the latest technological advancement to offer such an intelligent service. Customers can benefit from features such as embedded payments, deposits, lending, and reconciliations, which are part of their ERP. Having direct access to financial services, users can now interact with financial institutions in eight different ways –

Remittance
Receivables
Payment
Account reconciliation
Working capital
Cash forecasting
Bank transfers
FX management

NetSuite’s ERP system offers a combination of revenue transactions to boost your customer experience in real time. Six benefits of NetSuite bank integrations are given below –

Writing Checks – NetSuite’s business processes enable you to issue checks using the “Write Check” feature for payments or non-check transactions such as debit card transactions, ATM transactions, and EFT transactions.

Journal Entry – NetSuite’s global business allows you to create a journal entry to modify the balance of a general ledger account when conducting a transaction.

Moving Funds – You can now shift funds from one account to another and can even make money transfers to non-bank accounts.

Credit Cards – By utilizing NetSuite’s banking business model, customers can conveniently add company credit lines and charges, pay credit card bills, and reconcile statements, all within a single solution provider.

Account Mapping – The ERP solution will allow you to create and save a record for any financial institution. After that, you can add numerous Format Profiles to it. Formal Profiles will allow a business to create a bank transaction code for importing statement file formats.

Online Banking – For any kind of business like eCommerce, omnichannel commerce, or others that use online banking, NetSuite allows you to download transaction data from your bank or credit card company. After that, you can start importing the statement into the account. Moreover, you can automate your file uploads with the “Bank Connectivity” plug-in.

Bank deposits in NetSuite

In NetSuite, any business that records deposits to its bank accounts needs to review customer payments and other received funds to ensure accurate tracking. Instead of depositing customer payments like cash, checks, and credit directly into their specific bank accounts, many organizations use the “Undeposited Funds” ledger account. This method can cause delays between the amount displayed on your books and the actual bank balance.

When you record a deposit in NetSuite, it moves funds from the “Undeposited Funds” account to the ledger account for the actual bank account. This process ensures precise bank balances. To make a deposit, you can add funds, select received payments for existing transactions, or add cash that is not related to transactions. If customer payments were directly made to a bank account rather than “Undeposited Funds,” creating deposits is unnecessary.

How to make bank deposits in NetSuite?

In NetSuite, there is an option called “Make Deposits” that allows you to record funds that you deposit into your bank account. This feature enables you to select payments that you have received for existing transactions, add funds that are not related to transaction payments, and record any cash that you have received back from the bank as part of the deposit.

First, go to the Transactions section.
Select the Bank and then Make Deposits to create a new deposit.

Select the custom form for this deposit.
Select the bank account for the deposit. Based on the Account selected Currency, Exchange rate, and Subsidiary will display.

The Amount field shows the total amount of payments, other deposits, and cash back selected or entered on the Deposits subtab.
You can find the currencies and currency exchange rates in the list.
Enter today’s date or any date of the deposit.
The total payments is already been generated in our system.

The Payments subtab lists all payments posted to the Undeposited Funds account. Check the box next to each item to include in this deposit.
Next, you can go to the other deposit tab.

How to create other deposits?

Enter the company’s name like ABC, XYZ, or others.
Choose the total amount of your choice. We have entered the 15,000 amount recorded as the “Unrecorded Funds” account.
Select any payment method from the available options. We have chosen American Express.
Enter the 10 to 16 digits of account number.
Afterward, enter the department, class, location, and memo.

6. On the Cash Back, sub-tab of Deposits, you need to enter the amount of cash that you have received from the deposit, account name, department, class, location, and memo.

Cashback is nothing but the cash that you receive back after purchasing the items. For example, you have purchased 9 machinery parts or items from the vendors and found 2 defectives among them. So, when you return these two defective pieces to the vendor, he will return you the amount that you have purchased for these items.

There is a “Communications” tab where you can see sub-tabs like activity, attach files, and user notes. Each one of their functions is given below.

Activity helps you to add any event, phone call, or task
Attach files is used for adding the existing files
User Notes is used for making any notes about the customer, it could be anything like sending an email, a letter, or a note for the account

Besides regular deposits, there is also the tab “EFT” for recording the payments through the electronic transfer from one bank to another account. If your business deals with making money transfers through the EFT mode of payment then you can choose this option in NetSuite.

Once you have entered all the data then click on the “Save” button. All the deposits can be saved, edited, and deleted from the Deposits list

In the Communication subtab, you can attach files and notes to this transaction.

On the User Notes subtab, enter a title and note any comments you want to add to this transaction. Click Add after each note.
On the Files subtab, select and attach files from the File Cabinet related to this transaction. To upload a new file to the File Cabinet, select New from the dropdown list in the Attach Files column.
Use the Events, Tasks, and Phone Calls subtabs to add to attach activities, such as events, phone calls, and tasks to this transaction.

How to edit a saved deposit in the Deposits list?

First, go to the Transactions section.
From the Deposits list, click Edit next to the deposit you want to modify.
On the Deposit page, modify the saved deposit as required and click on save.

How to delete an existing deposit from the Deposits list?

First, go to the Transactions section.
From the Deposits list, click Edit next to the deposit you want to delete.
On the Deposit page, under Actions, click Delete.

Conclusion

NetSuite is an incredible business management platform that has developed over the years allowing several businesses to execute their operational tasks into a simple dashboard. We hope that this article was helpful for you to achieve successful deposits in NetSuite by following the above steps. For any assistance on NetSuite, connecting with our NetSuite Consultants will help you streamline your business.

How to prepare bank deposits in NetSuite