Chapter 2.1

Chart of Accounts Design

Your Chart of Accounts is the backbone of financial reporting. A well-designed COA provides clear visibility into business performance while remaining flexible enough to accommodate growth.

Design Principles

Before diving into account numbers, establish guiding principles that will drive consistency across your chart of accounts.

Principle What It Means Why It Matters
Simplicity Fewer accounts, more segments Easier maintenance; flexible reporting
Consistency Same structure across all entities Enables consolidation; comparable reports
Scalability Room to grow without restructuring Accommodates new products, locations, entities
Alignment Matches external reporting requirements Simplifies audits; regulatory compliance
🎯 Consultant Insight
The most common COA mistake? Too many accounts. New implementers often create separate accounts for every product line, department, and location. Use segments (Class, Department, Location) instead. You can always add a segment value; removing accounts with transactions is nearly impossible.

Account Numbering Strategy

A logical numbering scheme makes the COA intuitive and enables smart reporting. NetSuite supports alphanumeric account numbers up to 20 characters.

Common Numbering Patterns

Range Account Type Examples
1000-1999 Assets 1000 Cash, 1200 AR, 1500 Inventory
2000-2999 Liabilities 2000 AP, 2500 Accrued Expenses
3000-3999 Equity 3000 Common Stock, 3500 Retained Earnings
4000-4999 Revenue 4000 Product Sales, 4500 Service Revenue
5000-5999 Cost of Goods Sold 5000 Product COGS, 5500 Service Costs
6000-6999 Operating Expenses 6000 Salaries, 6500 Rent
7000-7999 Other Income 7000 Interest Income
8000-8999 Other Expense 8000 Interest Expense
💡 Leave Gaps
Always leave gaps between account numbers. If your first asset account is 1000, make your next one 1100, not 1001. This allows you to insert accounts later in logical positions.

Account Types vs. Account Categories

NetSuite distinguishes between Account Types (system-defined, controls behavior) and Account Categories (user-defined, reporting only).

Account Types

Account Type is mandatory and determines fundamental behavior:

  • Bank: Cash and cash equivalents; bank reconciliation enabled
  • Accounts Receivable: Controlled by system; linked to customers
  • Other Current Asset: Short-term assets not fitting other categories
  • Fixed Asset: Long-term tangible assets
  • Accounts Payable: Controlled by system; linked to vendors
  • Income: Revenue accounts
  • Cost of Goods Sold: Direct costs of products/services sold
  • Expense: Operating expenses
⚠️ AR and AP Are Special
Accounts Receivable and Accounts Payable accounts have special behaviors—they can only be used through transaction posting (invoices, bills), not journal entries. You typically need only one AR and one AP account per subsidiary.

Multi-Subsidiary Considerations

For OneWorld implementations (multiple subsidiaries), COA design requires additional planning.

Shared vs. Non-Shared Accounts

  • Shared accounts: Same account across all subsidiaries; simplifies consolidation
  • Non-shared accounts: Subsidiary-specific accounts; for unique local requirements
🎯 Best Practice
Make accounts shared by default. Only create subsidiary-specific accounts when there's a genuine need (local regulatory requirements, unique business lines). Shared accounts dramatically simplify consolidation and reporting.

Intercompany Accounts

OneWorld automatically creates intercompany accounts, but you'll need additional accounts for specific intercompany activities:

  • Due to/from accounts: Track intercompany receivables and payables
  • Intercompany revenue/expense: Transactions between entities
  • Elimination accounts: For consolidation adjustments

Account Hierarchy

NetSuite allows parent-child account relationships, creating roll-up hierarchies for reporting.

4000 Revenue (Parent)
4100 Product Revenue
4110 Hardware Sales
4120 Software Sales
4200 Service Revenue
4210 Professional Services
4220 Maintenance Revenue
ℹ️ Parent Account Behavior
Parent accounts summarize their children in reports. Transactions can only be posted to the lowest-level (child) accounts. Create parent accounts purely for organizational hierarchy, not for transaction posting.
Chapter 2.2

Segmentation Strategy

Segments add dimensions to your financial data without multiplying your chart of accounts. NetSuite provides four standard segments plus the ability to create custom segments.

The Four Standard Segments

NetSuite includes four built-in classification segments, each with specific behaviors and use cases.

Segment Typical Use Special Behaviors
Subsidiary Legal entities Drives intercompany, consolidation, multi-currency (OneWorld only)
Location Physical or logical locations Inventory tracking, nexus determination
Department Organizational units Can restrict user access by department
Class Flexible classification No special behaviors—pure analysis dimension

Location Design

Location is the most versatile segment. It can represent physical places, regions, or logical groupings.

Common Location Structures

  • Physical locations: Warehouses, stores, offices
  • Geographic regions: North, South, East, West
  • Logical divisions: E-commerce, Retail, Wholesale

Location Hierarchy

Locations support parent-child relationships. Design your hierarchy carefully:

  • Top level: Regions or countries
  • Second level: States or major markets
  • Third level: Individual locations
⚖️ Key Decision

Location Hierarchy Decision

🏭 Manufacturing
Manufacturing Consideration
Manufacturers should consider separating production facilities from distribution centers in the location hierarchy. This enables distinct inventory tracking and cost center analysis for each type of facility.

Department Design

Department typically mirrors your organizational structure. It's the most natural segment for P&L responsibility.

Department Hierarchy Patterns

⚖️ Key Decision

Department Structure

Department Restrictions

Departments can be used for access control. Users can be restricted to see only transactions and reports for their department(s). Consider this when designing hierarchy—too granular may create permission management overhead.

Class Design

Class is the most flexible segment—it has no built-in behavior, making it a blank canvas for whatever dimension you need.

Common Class Uses

  • Product Line: Hardware, Software, Services
  • Sales Channel: Direct, Partner, E-commerce
  • Customer Segment: Enterprise, Mid-Market, SMB
  • Project/Contract: For project-based businesses
  • Campaign: For marketing expense tracking
🎯 Consultant Insight
Save Class for your most important analytical dimension that isn't covered by Location or Department. You can only have one Class hierarchy, so use it wisely. If you need multiple flexible dimensions, that's when Custom Segments come into play.

Custom Segments

When the four standard segments aren't enough, NetSuite allows custom segments that behave just like the standard ones.

When to Create Custom Segments

  • Nonprofits: Fund, Grant, Restriction
  • Services: Project, Contract, Engagement
  • Healthcare: Program, Service Line
  • Construction: Job, Phase, Cost Code

Custom Segment Configuration

When creating a custom segment, you'll configure:

  • Label: What users see (e.g., "Grant")
  • Record Type: Where it appears (transactions, entities, items)
  • Filtering: Whether it appears on filters in searches and reports
  • Mandatory: Whether a value is required
⚠️ Custom Segment Limitations
Custom segments add complexity. Each segment adds a field to transaction entry, increases the dimensionality of reports, and requires maintenance. Limit yourself to segments that are truly essential for reporting. Most organizations need 0-2 custom segments.

Segment Strategy Decision Matrix

If You Need To Track... Use This Segment Because...
Legal entities with separate financials Subsidiary Drives consolidation and intercompany
Where inventory is stored Location Inventory quantities tracked by location
Geographic regions (no inventory) Location Natural fit for geographic analysis
Organizational cost centers Department Designed for org structure
Product lines or business units Class Flexible, no special behavior
Sales channels Class Flexible, no special behavior
Grants or restricted funds Custom Segment Unique dimension not covered by standard
Projects (beyond SuiteProjects) Custom Segment Unique dimension not covered by standard
Chapter 2.3

Entity Strategy

Entities are the people and organizations you do business with. Smart entity design prevents duplicate records, enables relationship tracking, and supports sophisticated CRM capabilities.

Entity Types in NetSuite

NetSuite has distinct entity types with different capabilities and purposes.

Entity Type Purpose Key Capabilities
Lead Prospective customer (early stage) Marketing campaigns, lead scoring, nurturing
Prospect Qualified lead (sales engaged) Opportunities, quotes, sales pipeline
Customer Paying customer Orders, invoices, payments, support cases
Vendor Supplier of goods/services Purchase orders, bills, payments
Employee Internal staff Time tracking, expenses, payroll, approvals
Partner Resellers, referral partners Partner commissions, portal access
Contact Individuals at companies Associated with other entities, email, roles

Customer Hierarchy Design

NetSuite supports parent-child customer relationships, enabling enterprise account structures.

When to Use Customer Hierarchy

  • Corporate accounts: Parent company with multiple divisions or locations
  • Franchise relationships: Franchisor as parent, individual franchisees as children
  • Ship-to / Bill-to separation: Parent for billing, children for shipping
  • Consolidated reporting: Total revenue across related entities

Hierarchy vs. Multiple Addresses

Don't confuse customer hierarchy with address management:

  • Multiple addresses: Same customer, different locations → Use address book
  • Multiple contacts: Same customer, different people → Use contact records
  • Separate legal entities: Different customers → Use parent-child hierarchy
Customer Hierarchy Example
flowchart TB
    P["Acme Corporation
Parent Customer"]
    P --> E["Acme East Division
Child Customer"]
    P --> W["Acme West Division
Child Customer"]
    P --> C["Acme Canada
Child Customer"]

    style P fill:#a855f7,stroke:#7c3aed,color:#ffffff
    style E fill:#faf5ff,stroke:#a855f7,color:#1a1d23
    style W fill:#faf5ff,stroke:#a855f7,color:#1a1d23
    style C fill:#faf5ff,stroke:#a855f7,color:#1a1d23
💡 Hierarchy Decision Rule
Create a child customer when: (1) they have a different credit limit, (2) they get different pricing, (3) they need separate invoices, or (4) they have different payment terms. If they share all of these, they're probably just different addresses on the same customer.

Customer-Vendor Relationship

Sometimes you buy from and sell to the same company. NetSuite handles this with linked records.

Options for Customer-Vendors

  • Separate records (linked): One customer record, one vendor record, linked together. Keeps AR/AP separate but shows the relationship.
  • Single record: Enable "Customer" and "Vendor" roles on the same entity. Simpler but can be confusing in searches and reports.
🎯 Consultant Insight
Most organizations prefer separate-but-linked records. It keeps the customer and vendor workflows cleanly separated while still allowing you to see the complete relationship. Use the "Represents" field to link a vendor to a customer or vice versa.

Contact Strategy

Contacts represent individuals at companies. Good contact management is essential for CRM and communication.

Contact Design Decisions

  • Primary contact: Who is the main contact for each company?
  • Role tracking: What roles do contacts play (Decision Maker, Influencer, User)?
  • Communication preferences: Email opt-in, preferred contact method
  • Portal access: Which contacts can log into customer/vendor portals?

Contact vs. Customer

A common question: should an individual person be a Contact or a Customer?

  • Contact: Person associated with a company; doesn't transact directly
  • Customer (Individual): Person who buys from you directly (B2C or sole proprietor)
ℹ️ Company vs. Individual Customers
NetSuite distinguishes between Company and Individual customers. Company customers have associated contacts. Individual customers are a person without a company. Set the "Is Person" field correctly—it affects name display and available fields.

Duplicate Prevention

Duplicate entity records are one of the most common data quality issues. Design prevention into your processes.

Prevention Strategies

  • Duplicate detection rules: Configure NetSuite's built-in duplicate detection on email, phone, company name
  • Required fields: Make email or phone required to have something to match on
  • Entry workflows: Train users to search before creating new records
  • Periodic cleanup: Schedule duplicate detection reports and merge procedures

Merge Considerations

When duplicates occur, NetSuite can merge records. Decide in advance:

  • Which record becomes the master (usually older or more complete)
  • How transaction history is preserved
  • What happens to custom field data
  • Who has authority to perform merges
Chapter 2.4

Item Strategy

Items are what you sell, buy, and make. Your item architecture affects inventory management, costing, pricing, and revenue recognition.

Item Types Overview

NetSuite offers numerous item types, each with specific behaviors.

Item Type Tracks Inventory? Use For
Inventory Item Yes Physical products you stock and sell
Non-Inventory Item (Sale) No Products sold but not tracked in inventory (drop ship, special order)
Non-Inventory Item (Purchase) No Goods purchased but not inventoried (supplies, consumables)
Service Item (Sale) No Services you provide to customers
Service Item (Purchase) No Services you purchase from vendors
Assembly/BOM Yes Manufactured items built from components
Kit/Package Components Bundle of items sold together
Item Group Members Shortcut for entering multiple items
Discount No Line-level discounts
Markup No Line-level markups
Subtotal No Subtotals for grouped items
Description No Text-only lines on transactions

Item Naming and Numbering

Item naming conventions affect searchability, sorting, and user experience.

Item Name/Number Strategies

  • SKU-based: Use vendor or internal SKU as the item name. Best for wholesale/distribution.
  • Descriptive: Human-readable names. Best for services and low-SKU-count businesses.
  • Hierarchical: Category codes embedded in name (ELEC-TV-SAM-55). Best for large catalogs.
  • Hybrid: SKU as Name/Number, description in Display Name. Balances both needs.
💡 Pro Tip: Separate Name and Display Name
Use the Name/Number field for internal identification (SKU) and Display Name for customer-facing text. This lets you have technical item codes while showing friendly descriptions on quotes and invoices.

Matrix Items

Matrix items handle products with variants—different sizes, colors, or options of the same base product.

Matrix Structure

  • Matrix Parent: The base product (e.g., "Classic T-Shirt")
  • Matrix Children: Individual variants (e.g., "Classic T-Shirt - Blue - Large")
  • Option Lists: Define the dimensions (Color, Size)

Matrix Design Decisions

  • Option dimensions: What attributes create variants? (Size, Color, Material)
  • Pricing: Same price for all variants or variant-specific pricing?
  • Inventory: Track separately for each variant (yes) or aggregate (no)
  • Images: Unique images per variant or shared images?
🛒 Retail
Retail Consideration
Matrix items are essential for apparel, footwear, and other variant-heavy retail. Plan your option lists carefully—adding new options later requires creating new matrix children for all combinations.

Assembly and BOM Items

Assemblies represent manufactured items built from components via a bill of materials.

BOM Design Considerations

  • BOM levels: How deep is your component hierarchy? (Single level vs. multi-level)
  • Phantom assemblies: Intermediate assemblies that aren't stocked separately
  • Revision control: Do BOMs change over time? How do you track revisions?
  • Effectivity dates: When do BOM changes take effect?
⚖️ Key Decision

Assembly vs. Kit Decision

🏭 Manufacturing
Manufacturing Consideration
If you have complex, multi-level BOMs or need routing/work center tracking, you'll likely need Advanced Manufacturing. Standard assemblies work for simple one-level builds.

Costing Methods

Inventory costing determines how cost of goods sold is calculated. This is an accounting policy decision with significant implications.

Method Description Best For Considerations
Average Running weighted average of all receipts High-volume, fungible goods Simple; smooths cost fluctuations
FIFO First in, first out Perishables, dated goods Better reflects current costs; more complex
LIFO Last in, first out Tax strategy (US only) Not allowed under IFRS; uncommon
Standard Predetermined fixed cost Manufacturing Requires variance analysis; budget-friendly
Lot Actual cost per lot High-value, unique items Most accurate; most effort
Group Average Average within location Multi-location distribution Location-specific costs
🚨 Costing Method is Hard to Change
Changing costing methods after go-live is extremely disruptive—it can require recalculating all historical COGS. Work with your accountants to choose the right method upfront. This is a decision that needs sign-off from finance leadership.

Pricing Configuration

NetSuite's pricing capabilities range from simple to highly sophisticated.

Pricing Options

  • Base Price: Default selling price on the item record
  • Price Levels: Named price tiers (Retail, Wholesale, VIP)
  • Quantity Pricing: Discounts based on quantity ordered
  • Customer-Specific Pricing: Unique prices per customer
  • Quantity Pricing Schedules: Volume discount tiers
  • Promotional Pricing: Time-limited promotional prices

Pricing Strategy Questions

  • How many distinct price levels do you need?
  • Do customers have negotiated contract prices?
  • Do you offer quantity breaks?
  • How are promotions managed?
  • Do prices vary by currency or region?
Chapter 2.5

Transaction Flow Design

Transaction flows define how business processes move through NetSuite. Smart flow design minimizes data entry, enforces controls, and provides visibility.

Order-to-Cash Flow Options

The sales cycle can follow different paths depending on your business model.

Standard Flow

Opportunity → Sales Order → Item Fulfillment → Invoice → Payment

Quote-Based Flow

Estimate → Sales Order → Item Fulfillment → Invoice → Payment

Cash Sale Flow

Cash Sale (immediate payment, no receivable)

Subscription Flow

Subscription → Subscription Line → Charge → Invoice → Payment

Flow Design Questions

  • Do orders require approval before fulfillment?
  • Is credit checking required?
  • Can partial fulfillments occur?
  • When does invoicing happen—at shipment or on schedule?
  • How are returns and credits handled?

Procure-to-Pay Flow Options

Purchasing flows vary based on control requirements and vendor relationships.

Full PO Flow

Purchase Requisition → Purchase Order → Item Receipt → Vendor Bill → Payment

Direct Bill Flow

Vendor Bill → Payment (no PO required)

Expense Report Flow

Expense Report → Approval → Vendor Bill → Payment

Three-Way Matching

For controlled purchasing environments, three-way matching ensures:

  • Bill quantity ≤ PO quantity
  • Bill quantity ≤ received quantity
  • Bill price ≤ PO price (with tolerance)
🎯 Consultant Insight
For most organizations, full three-way matching is overkill for low-value purchases. Consider setting thresholds: require POs and matching for purchases over $1,000, allow direct bills for smaller amounts. Balance control with efficiency.

Approval Routing Design

Approval workflows are one of the most common customizations. Design them carefully.

Approval Architecture Options

  • Role-based: Specific roles (e.g., CFO) approve
  • Hierarchy-based: Route to supervisor, then their supervisor
  • Amount-based: Different approvers at different dollar thresholds
  • Department-based: Route to department manager
  • Matrix: Combination of above factors

Approval Design Questions

  • What transactions require approval?
  • What are the approval thresholds?
  • Who are the backup approvers?
  • What's the escalation path for delayed approvals?
  • Can approvers delegate authority?
⚠️ Approval Paralysis
Don't over-engineer approvals. Every approval step adds delay. Ask: "What's the actual risk we're mitigating?" A $50 office supply order probably doesn't need three approval levels. Match approval rigor to actual risk.
Chapter 2.6

Security Model

Security design protects data, enforces separation of duties, and ensures compliance. Get it right during design—retrofitting security is painful.

NetSuite Security Layers

Security in NetSuite operates at multiple levels, each serving different purposes.

Layer Controls Scope
Role What can user do? Permissions for transactions, reports, setup
Subsidiary Restrictions Which subsidiaries can user access? Limits data to specific legal entities
Department Restrictions Which departments can user see? Limits data to organizational units
Location Restrictions Which locations can user access? Limits data to physical/logical locations
Custom Record Access Who can see custom records? Record-level access control

Role Design Strategy

Roles define what users can do. Design roles around job functions, not individuals.

Role Design Principles

  • Principle of least privilege: Give only the access needed to do the job
  • Separation of duties: No one person should control an entire process end-to-end
  • Job-based, not person-based: Name roles "AP Clerk," not "John's Role"
  • Minimize custom roles: Start with standard roles, customize only when necessary

Standard Role Starting Points

NetSuite includes many standard roles. Start with these and customize:

  • Administrator: Full access (limit to 1-2 people)
  • A/P Clerk: Vendor bills, payments
  • A/R Clerk: Invoices, customer payments
  • Accountant: Journal entries, reports
  • Sales Representative: Orders, customers, opportunities
  • Warehouse Manager: Fulfillment, receiving, inventory
  • Employee Center: Basic employee self-service
🚨 Administrator Role Warning
The Administrator role has unrestricted access. Limit it to 1-2 trusted individuals who need it for system configuration. Daily users—even executives—should have appropriate business roles, not Administrator. This is an audit finding waiting to happen.

Separation of Duties

Internal controls require that certain functions be separated to prevent fraud.

Classic Separation of Duties

Process Should Be Separated Why
Purchasing Creating PO ≠ Approving PO ≠ Receiving Prevent fictitious vendor payments
Payables Creating Bill ≠ Approving Payment ≠ Processing Payment Prevent unauthorized disbursements
Receivables Creating Invoice ≠ Applying Payment ≠ Making Deposits Prevent payment diversion
Inventory Warehouse Access ≠ Inventory Adjustment Authority Prevent theft concealment
Journal Entries Creating JE ≠ Approving JE Prevent unauthorized entries
🎯 Small Company Reality
Small companies often can't fully separate duties due to limited staff. In these cases, implement compensating controls: enhanced approval workflows, detailed audit trails, regular reconciliation reviews by ownership, and periodic external audits. Document your rationale.

Security Documentation

Document your security model for audit and training purposes.

Security Documentation Checklist

Chapter 2.7

Integration Architecture

Most NetSuite implementations involve integrations with other systems. Design integration architecture early—it affects data model, security, and project timeline.

Integration Inventory

Start by documenting every system that needs to connect to NetSuite.

System Data Flow Direction Frequency Priority
E-commerce (Shopify) Orders, Inventory Bidirectional Real-time Critical
CRM (Salesforce) Customers, Opportunities Bidirectional Near real-time High
Payroll (ADP) Payroll Journal Inbound Bi-weekly High
Bank (Chase) Transactions, Statements Inbound Daily High
EDI (SPS Commerce) Orders, ASNs, Invoices Bidirectional Hourly Critical

Integration Methods

NetSuite offers multiple integration approaches. Choose based on requirements.

Method Best For Complexity Notes
CSV Import One-time loads, simple recurring imports Low Manual or scheduled; limited error handling
SuiteTalk REST Modern integrations, mobile apps Medium RESTful API; recommended for new integrations
SuiteTalk SOAP Legacy integrations Medium-High Still supported but REST preferred
RESTlets Custom API endpoints High Full SuiteScript power; custom logic
Integration Platform (Celigo, Boomi) Multi-system orchestration Medium Pre-built connectors; faster deployment
SuiteApp Connectors Popular applications Low-Medium Pre-built for Shopify, Salesforce, etc.
⚖️ Key Decision

Integration Method Decision

Integration Design Considerations

Data Mapping

For each integration, document:

  • Source system fields → NetSuite fields
  • Data transformations required
  • Default values for missing data
  • Unique identifier for matching records

Error Handling

  • What happens when a record fails to import?
  • Who is notified of errors?
  • How are failed records retried?
  • Is there an error queue for manual review?

Timing and Sequencing

  • What's the frequency requirement? (Real-time, hourly, daily)
  • Is order of operations important? (Master data before transactions)
  • What are the peak volumes?
  • Are there blackout periods (month-end close)?
⚠️ Integration Governance
NetSuite has governance limits on API calls. High-volume integrations can hit limits, causing failures. Review expected volumes against concurrency limits early. You may need to batch operations or spread them over time.
Chapter 2.8

Industry Design Patterns

Each industry has proven design patterns that address common requirements. Apply these patterns to accelerate your design phase.

Manufacturing Design Patterns

Chart of Accounts

  • Separate COGS accounts for Material, Labor, and Overhead
  • WIP accounts for each production stage
  • Variance accounts for standard costing

Segmentation

  • Class: Product Line or Product Family
  • Location: Plants and warehouses
  • Department: Production, Quality, Shipping

Item Strategy

  • Multi-level BOMs with phantom assemblies for sub-assemblies
  • Standard costing with variance analysis
  • Lot or serial tracking for traceability

Wholesale/Distribution Design Patterns

Chart of Accounts

  • Inventory accounts by category or warehouse
  • Freight income and expense accounts
  • Rebate liability accounts

Segmentation

  • Class: Product Category or Vendor Line
  • Location: Warehouses (critical for inventory)
  • Department: Sales, Purchasing, Warehouse, Admin

Item Strategy

  • Average or FIFO costing
  • Multiple vendor support per item
  • Advanced pricing with volume discounts

Software/SaaS Design Patterns

Chart of Accounts

  • Deferred Revenue accounts by product type
  • Revenue accounts by revenue stream (Subscription, Services, Usage)
  • Contract Asset/Liability for ASC 606

Segmentation

  • Class: Product Line or Revenue Type
  • Department: R&D, S&M, G&A (for SaaS metrics)
  • Custom Segment: Contract or Subscription

Item Strategy

  • Subscription items with billing schedules
  • Service items for professional services
  • Usage-based items for metered billing

Professional Services Design Patterns

Chart of Accounts

  • Revenue accounts by service type or practice area
  • Unbilled receivables for WIP
  • Direct labor cost accounts

Segmentation

  • Class: Practice Area or Service Line
  • Department: Delivery teams, Partners
  • Custom Segment: Client or Engagement

Item Strategy

  • Service items by billing type (T&M, Fixed Fee)
  • Expense items for reimbursable expenses
  • Rate tables for billing rates by role

Nonprofit Design Patterns

Chart of Accounts

  • Natural accounts (GAAP) with functional expense allocation
  • Net Asset accounts by restriction type
  • Grant-specific revenue and expense accounts (if many grants)

Segmentation

  • Class: Program or Functional Area
  • Department: Programs, Fundraising, Admin
  • Custom Segment: Fund, Grant, or Restriction

Special Considerations

  • Statement of Functional Expenses reporting
  • Fund accounting with restriction tracking
  • Grant budget vs. actual tracking