Chapter 8.1

Advanced Inventory

Multi-location inventory, bin management, lot/serial tracking, and advanced costing methods.

Multi-Location Inventory

Multi-location inventory tracks stock quantities and values across multiple warehouses, stores, and distribution centers.

Enabling Multi-Location

Navigation: Setup → Company → Enable Features → Items & Inventory

  • Multi-Location Inventory - Track quantities by location
  • Bin Management - Track within-location positions
  • Lot Tracking - Track items by lot/batch number
  • Serial Number Tracking - Track individual units

Location Setup

Field Purpose Recommendation
Name Location identifier Use consistent naming (e.g., WH-EAST, WH-WEST)
Subsidiary Owning subsidiary Required for OneWorld
Use Bins Enable bin tracking Enable for warehouse locations
Make Inventory Available Include in available calculations Disable for quarantine locations
Include in Supply Planning Include in demand planning Enable for primary warehouses

Bin Management

Bins represent specific storage locations within a warehouse (shelves, racks, zones).

Bin Types

Type Purpose Use Case
Receiving Initial receipt location Dock staging area
Storage Primary inventory storage Rack locations, shelving
Picking Order fulfillment source Forward pick locations
Packing Pack station staging Outbound packing area
Shipping Outbound staging Dock staging for shipment
Quarantine Inspection/hold area QC inspection zone

Bin Naming Conventions

// Common naming pattern: ZONE-AISLE-RACK-SHELF-POSITION A-01-02-03-A // Zone A, Aisle 1, Rack 2, Shelf 3, Position A // Alternative: AREA-ROW-BAY-LEVEL BULK-R05-B12-L3 // Bulk area, Row 5, Bay 12, Level 3 // Receiving/Shipping areas RCV-DOCK-01 // Receiving Dock 1 SHIP-STAGE-02 // Shipping Stage 2 // Special areas QC-HOLD-01 // QC Hold Area 1 DAMAGE-01 // Damaged Goods Area

Lot/Batch Tracking

Lot tracking enables traceability for groups of items manufactured or received together.

When to Use Lots

  • Food & Beverage: Batch tracking for recalls, expiration dates
  • Pharmaceuticals: Regulatory compliance, shelf life management
  • Chemicals: Safety data sheets, hazmat tracking
  • Manufacturing: Component traceability, quality control

Lot Configuration

Setting Description Impact
Lot Numbering Sequence Auto-generate lot numbers Ensures unique identifiers
Expiration Date Track lot shelf life Enables FEFO picking
Lot Quantity On Hand Track quantity per lot Standard lot tracking
On Receipt When to assign lot Item Receipt creates lot
FEFO vs FIFO

FEFO (First Expired, First Out) picks items closest to expiration first. FIFO (First In, First Out) picks oldest receipt date first. Use FEFO for perishables with expiration dates; use FIFO for non-perishable items.

Serial Number Tracking

Serial numbers uniquely identify individual units for warranty tracking, service history, and asset management.

Serialized Item Configuration

Option When to Use Example
On Sale Only Track after sale for warranty Electronics, appliances
On Receipt Track from receipt through sale High-value items, medical devices
When Order is Committed Assign at pick/pack stage Configured goods

Serial Number Workflow

┌─────────────────────────────────────────────────────────────────┐ │ SERIAL NUMBER LIFECYCLE │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ ┌──────────┐ ┌──────────┐ ┌──────────┐ ┌──────────┐ │ │ │ Receive │──▶│ In Stock │──▶│ Sold │──▶│ Customer │ │ │ │ SN: 001 │ │ SN: 001 │ │ SN: 001 │ │ SN: 001 │ │ │ └──────────┘ └──────────┘ └──────────┘ └──────────┘ │ │ │ │ │ │ ▼ ▼ │ │ ┌──────────┐ ┌──────────┐ │ │ │ Transfer │ │ RMA/Svc │ │ │ │ SN: 001 │ │ SN: 001 │ │ │ └──────────┘ └──────────┘ │ │ │ └─────────────────────────────────────────────────────────────────┘

Advanced Costing Methods

Costing Method Comparison

Method How It Works Best For
Average Weighted average of all receipts Commodities, high-volume items
FIFO First costs in, first costs out Perishables, rising cost environments
LIFO Last costs in, first costs out Tax optimization (US only)
Specific Actual cost per serial/lot High-value items, vehicles
Standard Predetermined cost with variances Manufacturing, cost control
Group Average Average across item group Similar item families
Costing Method Lock

Once an item has inventory transactions, the costing method cannot be changed. Carefully evaluate costing requirements before initial transactions. Test thoroughly in sandbox.

Inventory Adjustments

Adjustment Types

Transaction Purpose GL Impact
Inventory Adjustment Increase/decrease quantity Inventory Asset ↔ Adjustment Account
Inventory Transfer Move between locations No P&L impact (asset relocation)
Bin Transfer Move within location No financial impact
Inventory Count Physical count entry Generates adjustments for variances
Inventory Revaluation Adjust item cost/value Inventory Asset ↔ Reval Account

Inventory Count Process

  1. Create Inventory Count - Define scope (location, items, date)
  2. Generate Count Tags - Print tags or load to mobile
  3. Perform Physical Count - Record quantities found
  4. Enter Counts - Input counts into NetSuite
  5. Review Variances - Analyze discrepancies
  6. Approve Adjustments - Generate adjustment transactions

Advanced Inventory Checklist

Chapter 8.2

Warehouse Management (WMS)

Mobile warehouse operations, wave management, pick strategies, and real-time inventory control using NetSuite WMS.

WMS Module Overview

NetSuite Warehouse Management System (WMS) extends core inventory functionality with mobile device support, directed picking/putaway, and real-time inventory updates. The module enables efficient warehouse operations through systematic process control.

WMS vs Standard Inventory

Capability Standard Inventory WMS
Mobile Device Support Limited (browser only) Full mobile app with scanning
Wave Picking Not available Multi-order wave management
Directed Putaway Manual bin selection System-suggested locations
Pick Strategies Basic FIFO Configurable strategies per item/zone
Real-time Updates Batch processing Immediate transaction posting
Cartonization Not available Automatic packing optimization
Licensing Note

WMS requires a separate license on top of NetSuite base. Available in two tiers: WMS Lite (basic mobile) and WMS Full (complete functionality including waves, strategies, and cartonization).

WMS Setup & Configuration

Enable WMS Feature

Path: Setup → Company → Enable Features → Items & Inventory → Warehouse Management

☐
Enable WMS feature at company level
☐
Configure WMS-enabled locations (per subsidiary if OneWorld)
☐
Set up WMS roles with appropriate permissions
☐
Configure mobile device settings
☐
Define zones, bins, and pick strategies

Location Configuration for WMS

Setting Purpose Consideration
Use Bins Enable bin-level tracking Required for WMS
Make Inventory Available Allow inventory transactions Enable for stocking locations
Use WMS Enable WMS mobile operations Per-location setting
Default Receiving Bin Initial receipt location Use staging area (not storage)
Default Shipping Bin Items staged for shipment Near shipping dock

SuiteApp Installation & Prerequisites

NetSuite WMS requires installing two SuiteApps in a specific order. The SCM Mobile bundle provides the mobile device application, while Oracle NetSuite WMS contains the business logic for warehouse processes.

Installation Sequence

WMS SuiteApp Installation Order: ┌─────────────────────────────────────────────────────────────────┐ │ Step 1: Enable Advanced Inventory Management Feature │ │ Setup → Company → Enable Features → Items & Inventory │ ├─────────────────────────────────────────────────────────────────┤ │ Step 2: Install SCM Mobile SuiteApp │ │ Customization → SuiteBundler → Search & Install Bundles │ │ Bundle ID: 326943 (SCM Mobile) │ │ Installation Time: ~3-5 minutes │ ├─────────────────────────────────────────────────────────────────┤ │ Step 3: Install Oracle NetSuite WMS SuiteApp │ │ Bundle ID: 328497 (Oracle NetSuite WMS) │ │ Installation Time: ~20-30 minutes │ ├─────────────────────────────────────────────────────────────────┤ │ Step 4: Activate Enable Warehouse Management System Rule │ │ WMS Configuration → Configure Warehouse → System Rules │ │ Set Rule Value = Y │ └─────────────────────────────────────────────────────────────────┘
Critical: SuiteApp Deactivation

If the Oracle NetSuite WMS SuiteApp is inactivated or uninstalled, you MUST first inactivate the "Enable Warehouse Management" system rule. Failure to do so will cause issues with order processing in other SCM mobile apps.

WMS Roles & Permissions

Role Purpose Key Permissions
Administrator Initial setup and configuration Enable features, install SuiteApps, manage all records
Mobile – Administrator Mobile process customization Configure mobile processes, printing without full admin
WMS Warehouse Manager Daily operations management Activate system rules, create item aliases, cycle counts, all mobile access
WMS Picker Floor-level operations Mobile picking, putaway, counts (limited UI access)

WMS System Rules Configuration

System rules add capabilities or enable alternate behavior for warehouse processing tasks. Rules can apply to all warehouse locations or specific locations, and some allow you to specify the mobile process for activation.

Key System Rules - Inbound Processing

Rule Value Effect
Enable Receive All option Y/N Display "Receive All" button for lot/serial items on PO Receiving
Autogenerate Lot Numbers? Y/N Auto-generate lot numbers during PO Receiving (requires Lot Auto Numbering SuiteApp)
Autogenerate Serial Numbers? Y/N Auto-generate serial numbers during receiving and work order builds
Stage received items before putting away? Y/N Suggest staging bins first (Y) or storage bins directly (N)
Manually post item receipts? Y/N Single batch receipt (Y) vs individual receipt per item (N)
Enable Tally Scan? Y/N Scan item barcode to increment quantity by 1
Enable Weighing Scale Support Y/N Capture weight from PrintNode-integrated scales during receiving

Key System Rules - Outbound Processing

Rule Value Effect
Manually pack orders? Y/N Y = Manual pack with carton details; N = Auto-pack after picking
Use cartons for single-order picking? Y/N Enable carton entry during single order picks
Use cartons for multi-order picking? Y/N Enable carton entry during multi-order batch picks
Enable Zone Picking for single orders Y/N Pick from one or more zones with merge capability
Enable Zone Picking for multiple orders Y/N Zone picking with optional stage-by-order
Allow picking of expired items? Y/N Include expired lots in pick suggestions
Automatically mark partial picks as Done Y/N Auto-complete pick tasks after partial submission
Enable bulk picking for large pick tasks Y + Line Limit Bulk pick mode for tasks exceeding line threshold (default 50)

Key System Rules - Inventory & Counting

Rule Value Effect
Start and complete counts on app Y/N Allow starting/completing cycle counts via mobile
Change lot entry sequence for counts? Y/N Enter quantities per lot without entering total first
Entry of additional details Y/N Display adjustment reason fields in Create Inventory process
Enable bin reporting and blocking Y/N Enable bin blocking during order picking
Choose bins for reversed pick task items? Y/N Select destination bin when reversing picks

Key System Rules - Barcode & Scanning

Rule Value Effect
Enable Advanced Barcode Scanning? Y + Type Support GS1, HIBC, or Composite barcode formats
Scan bar codes with bulk serial numbers? Y + Delimiter Scan barcodes containing up to 300 serial numbers
Add Date Filtering Y + Months Filter transactions by creation date on Data Table pages
System Rule Activation

Use the WMS Warehouse Manager role to activate rules. Navigate to WMS Configuration → Configure Warehouse → System Rules. Set Rule Value = Y and optionally specify Location for location-specific rules. Some rules require additional configuration in the "Additional Settings" fields.

Zone & Bin Management

Zone Strategy

Zones group bins for pick strategy assignment, reporting, and operational control. Design zones based on physical layout and item characteristics.

┌─────────────────────────────────────────────────────────────────┐ │ WAREHOUSE ZONE LAYOUT │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ ┌───────────┐ ┌─────────────────────────────┐ ┌──────────┐ │ │ │ RECEIVING │ │ BULK STORAGE │ │ SHIPPING │ │ │ │ ZONE │ │ ZONE │ │ ZONE │ │ │ │ │──▶│ High-volume, full pallets │──▶│ │ │ │ │ Staging │ └─────────────────────────────┘ │ Staging │ │ │ │ QC Check │ │ │ Packing │ │ │ └───────────┘ ▼ └──────────┘ │ │ ┌─────────────────────────────┐ │ │ │ PICK ZONE │ │ │ │ Forward pick locations │────────────────│ │ │ Case/each picking │ │ │ └─────────────────────────────┘ │ │ │ │ │ ▼ │ │ ┌─────────────────────────────┐ │ │ │ SPECIAL ZONES │ │ │ │ ┌─────┐ ┌─────┐ ┌────────┐ │ │ │ │ │Cold │ │Haz │ │Returns │ │ │ │ │ │Chain│ │Mat │ │Process │ │ │ │ │ └─────┘ └─────┘ └────────┘ │ │ │ └─────────────────────────────┘ │ └─────────────────────────────────────────────────────────────────┘

Zone Types & Configuration

Zone Type Purpose Pick Strategy
Receiving Inbound staging, QC N/A (putaway only)
Bulk Storage Reserve stock, full pallets FIFO, replenish forward pick
Forward Pick Active pick face, cases/eaches Location sequence, min travel
Shipping Outbound staging, packing N/A (pack/ship only)
Quarantine Hold, damaged, returns Manual release required

Bin Naming Convention

Consistent bin naming enables efficient picking and systematic putaway. Include zone, aisle, rack, level, and position.

Format: [Zone]-[Aisle][Rack][Level][Position] Examples: BULK-A01-B-03 = Bulk zone, Aisle A, Rack 01, Level B, Position 03 PICK-C05-A-01 = Pick zone, Aisle C, Rack 05, Level A, Position 01 RECV-STAGE-01 = Receiving zone, Staging area, Position 01 SHIP-DOCK-02 = Shipping zone, Dock 02 Level Convention: A = Floor/Ground level B = Second level (easy reach) C = Third level (forklift required) D = Top level (bulk reserve)

Pick Strategies

Available Pick Strategies

Strategy How It Works Best For
FIFO Pick oldest inventory first (by receipt date) Perishables, lot-controlled items
FEFO Pick earliest expiration first Food, pharmaceuticals
LIFO Pick newest inventory first Non-perishable, cost optimization
Bin Sequence Pick in bin number order Minimize travel distance
Bin Priority Pick from priority bins first Forward pick depletion
Manual Picker selects bin Flexibility, unique situations

Strategy Assignment Hierarchy

Pick Strategy Resolution Order: ┌─────────────────────────────────────────┐ │ 1. Item-Location Override │ ← Most specific ├─────────────────────────────────────────┤ │ 2. Item-Level Strategy │ ├─────────────────────────────────────────┤ │ 3. Zone Default Strategy │ ├─────────────────────────────────────────┤ │ 4. Location Default Strategy │ ← Most general └─────────────────────────────────────────┘
Pick Path Optimization

Configure bin sequence numbers to create efficient pick paths. Use serpentine patterns: ascending on odd aisles, descending on even aisles to minimize backtracking.

Defining Pick Strategies

Pick strategies define zones where warehouse operators can pick specific items or orders. Create via Lists → Supply Chain → Pick Strategy → New.

Field Purpose Options
Transaction Type Type of order this strategy applies to Sales Order, Transfer Order, Work Order, Replenishment, Vendor Return
Sequence Number Priority ranking (lower = higher priority) Numeric value
Location Warehouse location Select one location
Item Criteria Filter by items and pick decomposition units Item Classification, Family, Group
Order Criteria Filter by order characteristics Rush Order, Order Type, etc.
Pick Zones Zone prioritization (required) Add zones in descending priority order

Defining Putaway Strategies

Putaway strategies define where items should be placed after receipt. NetSuite WMS uses a 7-step sorting process to suggest storage locations.

Putaway Strategy Bin Suggestion Logic: ┌─────────────────────────────────────────────────────────────────┐ │ Step 1: Retrieve item record values │ │ Item Group, Item Family, ABC Velocity, WMS Mix Lot, │ │ WMS Mix Item, Preferred Bin │ ├─────────────────────────────────────────────────────────────────┤ │ Step 2: Find matching putaway strategies │ │ Match criteria from item record to strategy criteria │ ├─────────────────────────────────────────────────────────────────┤ │ Step 3: Extract zone and sequence number from each strategy │ ├─────────────────────────────────────────────────────────────────┤ │ Step 4: Sort warehouse zones by sequence number (ascending) │ ├─────────────────────────────────────────────────────────────────┤ │ Step 5: Apply bin restrictions from item configuration │ │ Mixed Items Allowed? Mixed Lots Allowed? │ ├─────────────────────────────────────────────────────────────────┤ │ Step 6: Sort bins by putaway sequence number (ascending) │ ├─────────────────────────────────────────────────────────────────┤ │ Step 7: Generate suggestion list │ │ Priority: Preferred bins → Bins with qty → Empty bins │ └─────────────────────────────────────────────────────────────────┘
Item Setting Effect on Putaway Suggestions
Mixed Items Allowed = Y Include all associated bin locations (after empty bins)
Mixed Items Allowed = N Only bins with same item or empty bins
Mixed Lots Allowed = Y Include all associated bin locations
Mixed Lots Allowed = N Only bins with same lot or empty bins
WMS Preferred Bin Always appears first in suggestion list
Default Putaway Strategy

Always create at least one putaway strategy with the highest sequence number and default zone. This serves as a fallback when items don't match any specific strategy criteria.

Wave Management

Waves group multiple orders for efficient batch picking. Wave releases create coordinated pick tasks across the warehouse.

Wave Release Process

┌─────────────────────────────────────────────────────────────────┐ │ WAVE PICKING WORKFLOW │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ ┌─────────┐ ┌─────────┐ ┌─────────┐ ┌─────────┐ │ │ │ Orders │ │ Wave │ │ Pick │ │ Pack │ │ │ │ Pending │───▶│ Release │───▶│ Tasks │───▶│ Station │ │ │ │ │ │ │ │ │ │ │ │ │ │ SO-001 │ │ WAVE-01 │ │ T-001 │ │ Cartons │ │ │ │ SO-002 │ │ 50 ord │ │ T-002 │ │ Labels │ │ │ │ SO-003 │ │ 200 pcs │ │ T-003 │ │ Ship │ │ │ └─────────┘ └─────────┘ └─────────┘ └─────────┘ │ │ │ │ │ ▼ │ │ Wave Criteria: │ │ • Carrier/Service │ │ • Ship Date │ │ • Zone (geography) │ │ • Priority │ │ • Order Size │ └─────────────────────────────────────────────────────────────────┘

Wave Configuration Options

Setting Purpose Typical Value
Maximum Orders per Wave Limit wave size 50-100 orders
Maximum Lines per Wave Manage complexity 500-1000 lines
Auto-Release Scheduled wave creation Based on cutoff times
Sort Sequence Order of pick task creation Zone → Aisle → Bin

Pick Types by Wave

Pick Type Description When to Use
Discrete One order per trip Large orders, high-value items
Batch Multiple orders, one item at a time High-velocity SKUs
Cluster Multiple orders on cart simultaneously Small orders, e-commerce
Zone Pickers stay in assigned zone Large warehouse, specialized zones

Mobile Device Operations

WMS Mobile App Functions

Function Process Scan Points
Receiving PO receipt with putaway PO/ASN → Item → Qty → Bin
Putaway Move from staging to storage Source Bin → Item → Dest Bin
Picking Fulfill pick tasks Task → Bin → Item → Qty
Packing Cartonize and label Order → Items → Carton
Shipping Carrier manifest Carton → Manifest → Trailer
Cycle Count Bin-level inventory count Bin → Item → Count
Bin Transfer Move inventory between bins Source → Item → Qty → Dest

Mobile Device Setup

☐
Configure device profiles with function access
☐
Set up WiFi connectivity throughout warehouse
☐
Configure barcode formats (item, bin, lot, serial)
☐
Test scanning with all label types
☐
Set timeout and auto-logout settings
Barcode Requirements

WMS requires scannable barcodes on items, bins, and (if used) lots/serials. Plan barcode labeling strategy before go-live. GS1-128 format recommended for compliance.

Inbound Operations

Receiving Workflow

Mobile Receiving Steps: ┌─────────────────────────────────────────────────────────────────┐ │ 1. Scan PO/ASN │ │ └── System displays expected items │ │ │ │ 2. Scan/Enter Item │ │ └── Validates against PO line │ │ │ │ 3. Enter Quantity │ │ └── Checks for over-receipt tolerance │ │ │ │ 4. Capture Lot/Serial (if applicable) │ │ └── System may generate or user scans │ │ │ │ 5. Scan Receiving Bin (or accept default) │ │ └── Creates inventory in staging │ │ │ │ 6. Complete Receipt │ │ └── Triggers putaway task creation │ └─────────────────────────────────────────────────────────────────┘

Directed Putaway Logic

Putaway Strategy Logic Use Case
Fixed Location Item always goes to same bin Fast movers, dedicated pick face
Random/Floating First available bin in zone Bulk storage, high SKU count
Consolidation Put with existing inventory FIFO compliance, space efficiency
Closest Nearest available bin Minimize travel time

Outbound Operations

Order Fulfillment Flow

┌─────────────────────────────────────────────────────────────────┐ │ OUTBOUND PROCESS FLOW │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ Sales Order Wave Release Pick Tasks │ │ ┌─────────┐ ┌─────────┐ ┌─────────┐ │ │ │Approved │─────▶│ Wave │──────▶│ Mobile │ │ │ │Ready │ │ Create │ │ Pick │ │ │ └─────────┘ └─────────┘ └─────────┘ │ │ │ │ │ ▼ │ │ Shipped Manifested Pack Station │ │ ┌─────────┐ ┌─────────┐ ┌─────────┐ │ │ │Complete │◀─────│ Label │◀──────│ Cartons │ │ │ │Invoiced │ │ Carrier │ │ Verify │ │ │ └─────────┘ └─────────┘ └─────────┘ │ │ │ └─────────────────────────────────────────────────────────────────┘

Packing & Cartonization

Feature Description Configuration
Carton Types Define box sizes available Dimensions, weight limits, cost
Auto-Cartonize System suggests optimal box Based on item dims/weight
Pack Verification Scan items into carton Prevents mis-ships
Multi-Carton Orders Large orders across boxes Linked to single shipment
Shipping Integration

WMS integrates with carrier systems (UPS, FedEx, etc.) via SuiteBilling or third-party connectors. Configure rate shopping to automatically select optimal carrier/service.

Replenishment

Maintain optimal pick location inventory through automated replenishment from bulk storage.

Replenishment Triggers

Trigger Type When Fires Configuration
Min/Max Qty falls below minimum Set min/max per item-location
Wave-Based Demand exceeds pick location qty Part of wave release process
Scheduled Time-based batch replenishment Nightly or shift-based
Manual Supervisor creates task Ad-hoc needs

Replenishment Workflow

Replenishment Task Flow: ┌──────────────┐ ┌──────────────┐ ┌──────────────┐ │ Pick Location│ │ Replen Task │ │ Bulk Storage │ │ Below Min │───▶│ Generated │◀───│ Reserved │ │ PICK-A01-A01 │ │ (Priority) │ │ BULK-C05-D02 │ └──────────────┘ └──────────────┘ └──────────────┘ │ │ │ │ ▼ │ │ ┌──────────────┐ │ │ │ Mobile Pick │ │ │ │ Full Pallet │ │ │ │ or Case Qty │ │ │ └──────────────┘ │ │ │ │ ▼ ▼ ▼ ┌──────────────────────────────────────────────────────┐ │ Pick Location Restocked, Bulk Decremented │ └──────────────────────────────────────────────────────┘

Cycle Counting & Inventory Counts

WMS provides comprehensive cycle counting capabilities through cycle count plans, which serve as templates for generating inventory counts with advanced filtering options.

Cycle Count Plan Configuration

Filter Category Options Purpose
Item Filters Item Type, Classification, Family, Group, Individual Item Target specific inventory categories
Item Frequency Use Item Frequency checkbox + date range Count based on next count date on item record
Vendor Filter Vendor name Count items from specific vendor POs/inbound shipments
Bin Filters Zones, Aisle, Individual Bins Target specific warehouse areas
Zero Quantity Count Bin Rows With Zero Quantity checkbox Include zero-qty items in count
Sort Order Sort Rows by Bin checkbox Sort by bin number (vs item name) for area-based counting

Cycle Count Workflow

Cycle Count Process Flow: ┌─────────────────────────────────────────────────────────────────┐ │ 1. Create Cycle Count Plan │ │ WMS Inventory → Cycle Count → Create Cycle Count Plans │ │ Define filters, variance account, assignment │ ├─────────────────────────────────────────────────────────────────┤ │ 2. Generate & Release Inventory Count │ │ Select plan → Specify date range (if using frequency) │ │ → Generate to create count tasks │ ├─────────────────────────────────────────────────────────────────┤ │ 3. Perform Count on Mobile Device │ │ Inventory → Process Count → Select assigned count │ │ Scan bin → Scan item → Enter quantity → Confirm │ ├─────────────────────────────────────────────────────────────────┤ │ 4. Review Variances │ │ System calculates differences vs on-hand │ │ Supervisor reviews before posting │ ├─────────────────────────────────────────────────────────────────┤ │ 5. Complete Count │ │ Posts inventory adjustments to variance account │ │ Updates on-hand quantities │ └─────────────────────────────────────────────────────────────────┘
Mobile Count Capability

Activate the "Start and complete counts on app" system rule to allow warehouse staff to start and complete cycle counts entirely from the mobile device without supervisor intervention in NetSuite UI.

Inventory Costing Methods

NetSuite supports multiple inventory costing methods that affect how cost of goods sold (COGS) is calculated when inventory is shipped or consumed.

Available Costing Methods

Method How It Works Best For
Average (Default) Calculates weighted average cost across all receipts General use, simplicity, stable pricing
FIFO First-In, First-Out: oldest inventory costed first Perishables, lot-controlled, rising costs
LIFO Last-In, First-Out: newest inventory costed first Tax optimization (not available in AU)
Standard Fixed cost with variance tracking (PPV) Manufacturing, budgeting, cost control
Specific Exact cost of serial/lot number High-value items, serialized inventory
Group Average Average cost across multiple locations in a group Multi-location, intercompany transfers

Costing Method Selection

Set Default Costing Method: Path: Setup → Accounting → Preferences → Accounting Preferences → Items/Transactions subtab → Default Inventory Costing Method Per-Item Override: Set on item record → Inventory subtab → Costing Method field ⚠️ CANNOT be changed after item is saved with transactions
Costing Method Lock

You cannot change the costing method on an item record after it is saved. To change methods, you must: (1) adjust inventory to zero, (2) inactivate the item, (3) recreate with correct costing method, (4) enter opening balance. Plan costing method carefully before go-live.

Standard Costing & Purchase Price Variance

Scenario Standard Cost Actual Cost PPV
Receipt 1 $10.00 $9.50 -$0.50 (favorable)
Receipt 2 $10.00 $11.25 +$1.25 (unfavorable)
Sale $10.00 N/A COGS = $10.00
Cost Timing with Advanced Receiving

With Advanced Receiving enabled, inventory cost is determined at item receipt (not vendor bill). If the vendor bill amount differs from the receipt, the variance posts to the Accrued Purchases account rather than adjusting item cost.

Ship Central Integration

NetSuite Ship Central provides packing and shipping capabilities using kiosk devices. When used with WMS, it enables a complete pick-pack-ship workflow.

WMS + Ship Central Configuration

Setting Consideration
Setup Sequence Complete WMS setup BEFORE Ship Central setup
Packing Capability Do NOT use packing in both WMS and Ship Central simultaneously
Wave Integration Wave functionality enables order search when packing through Ship Central
Pick Cartons Rule If activated in WMS, enables order search for Ship Central packing
Mobile Printing Same PrintNode integration used for both apps
Login URL Same SCM Mobile URL provides access to both WMS and Ship Central
Packing Exclusivity

WMS and Ship Central process fulfillment and record updates differently. Using packing capabilities in both apps simultaneously will cause data inconsistencies. Choose one app for packing operations.

Industry-Specific WMS Patterns

E-Commerce / Retail

  • High-volume picking: Cluster picking with multi-order carts
  • Returns processing: Dedicated returns zone with grading workflow
  • Same-day shipping: Priority waves with cutoff times
  • Kitting: Pre-assemble promotional bundles

Food & Beverage

  • Temperature zones: Separate cold chain inventory
  • FEFO enforcement: Mandatory expiration-based picking
  • Lot traceability: Full chain of custody for recalls
  • Allergen separation: Zone segregation for cross-contamination prevention

Manufacturing

  • Raw material staging: Kit to production orders
  • WIP tracking: Move between production stages
  • Finished goods putaway: From production to shipping
  • Quality hold: Quarantine pending QC release

Healthcare / Pharma

  • Serialization: Unit-level tracking (DSCSA compliance)
  • Controlled substances: Restricted access zones
  • Expiration management: Strict FEFO, short-date alerts
  • Audit trail: Full transaction history

WMS Implementation Checklist

☐
Enable WMS feature and configure locations
☐
Design zone layout matching physical warehouse
☐
Create bins with consistent naming convention
☐
Define pick strategies per zone/item
☐
Configure putaway rules and defaults
☐
Set up wave templates for order types
☐
Configure carton types and packing stations
☐
Set up mobile devices and test connectivity
☐
Print and apply all bin/location labels
☐
Configure replenishment triggers
☐
Train warehouse staff on mobile operations
☐
Run parallel operations before cutover
Chapter 8.3

Manufacturing

Bill of materials, work orders, routing, MRP, and production management in NetSuite.

Manufacturing Module Overview

NetSuite Manufacturing supports make-to-stock, make-to-order, and configure-to-order production scenarios. The module integrates with inventory, purchasing, and financials to provide complete visibility into production operations.

Manufacturing Modes

Mode Description Use Case
Make to Stock (MTS) Build to inventory based on forecasts Standard products, steady demand
Make to Order (MTO) Build against specific customer orders Custom products, high-value items
Assemble to Order (ATO) Combine standard components per order Configurable products
Engineer to Order (ETO) Design and build per customer specs One-off projects, prototypes

Key Manufacturing Records

Record Purpose Key Fields
Assembly Item Finished/semi-finished goods BOM, Build Time, Costing
Bill of Materials Component structure Components, Quantities, Revisions
Work Order Production instruction Item, Qty, Status, Completion
Manufacturing Routing Production steps/operations Work Centers, Times, Sequence
Work Center Production resource Capacity, Costs, Calendar

Bill of Materials (BOM)

BOM Structure

┌─────────────────────────────────────────────────────────────────┐ │ MULTI-LEVEL BOM STRUCTURE │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ Level 0 (Finished Good) │ │ └── LAPTOP-PRO-15 │ │ │ │ │ Level 1 (Sub-Assemblies) │ │ ├── DISPLAY-ASSY (1 ea) │ │ │ └── Level 2 Components: │ │ │ ├── LCD-PANEL-15 (1 ea) │ │ │ ├── BEZEL-15 (1 ea) │ │ │ └── HINGE-SET (1 set) │ │ │ │ │ ├── MOTHERBOARD-ASSY (1 ea) │ │ │ └── Level 2 Components: │ │ │ ├── PCB-MAIN (1 ea) │ │ │ ├── CPU-CHIP (1 ea) │ │ │ └── RAM-8GB (2 ea) │ │ │ │ │ Level 1 (Components) │ │ ├── CHASSIS-15 (1 ea) │ │ ├── KEYBOARD-US (1 ea) │ │ ├── BATTERY-65W (1 ea) │ │ └── POWER-ADAPTER (1 ea) │ │ │ └─────────────────────────────────────────────────────────────────┘

BOM Component Types

Type Behavior Example
Inventory Component Consumed from stock Raw materials, purchased parts
Assembly Component Sub-assembly (explodes or builds) PCB assembly, sub-module
Phantom Assembly Auto-explodes (no WIP tracking) Logical groupings, kits
Service Component Cost allocation only Labor, machine time
Non-Inventory Component No stock impact Consumables, packaging

BOM Revision Control

☐
Enable "Use BOM Revisions" feature for version control
☐
Define revision naming convention (A, B, C or 1.0, 1.1, 2.0)
☐
Set effective dates for revision transitions
☐
Configure approval workflow for BOM changes
BOM Lock Behavior

Once a work order is created, it snapshots the BOM. Changes to the master BOM do not affect existing work orders. For urgent changes, create new work orders or manually update components.

Advanced Bill of Materials (Advanced BOM)

Advanced BOM replaces embedded BOMs in assembly items. After enabling, existing BOMs automatically migrate to the new structure. Advanced BOM enables reusable BOMs across assemblies and location-specific configurations.

Enabling Advanced BOM

Path: Setup → Company → Enable Features → Items & Inventory Check: Advanced Bill of Materials IMPORTANT: After enabling, the Assembly/Bill of Materials record is replaced. Existing BOMs convert to read-only "legacy BOM" records automatically.

Advanced BOM Capabilities

Feature Description Use Case
BOM Reusability Single BOM shared across multiple assemblies Common sub-assemblies (e.g., wheel assembly for different bike sizes)
Multiple BOMs per Assembly Different BOMs for same assembly item Engineering BOM, Production BOM, Subcontracting BOM
Location-Specific Default Different default BOM per production location US facility uses BOM-US, Canada uses BOM-CA
Component Yield Define yield percentage at component level Account for material loss during production
BOM Revisions Multiple revisions with effective dates Track BOM evolution, engineering changes

Component Yield Configuration

Component yield accounts for material loss during manufacturing. Define yield at the component level on the BOM revision record.

Example: Component yield at 95% (5% scrap expected) Standard BOM Qty: 10 units Required Qty: 10 / 0.95 = 10.53 units (rounds up) System Orders: 11 units to ensure 10 available Set on: BOM Revision → Component line → Yield field

BOM Revision Effective Dates

Scenario Effective Start Effective End Behavior
Rev A (Current) Jan 1 Jan 31 Active through January
Rev B (New) Feb 1 (blank) Takes over February onward
No Overlapping Revisions

You cannot create overlapping revisions for a BOM. Before creating a new revision with a start date, you must first set the effective end date on the prior revision. Example: To create Rev B starting Feb 1, first update Rev A's end date to Jan 31.

Assembly Item Configuration

Assembly items define finished or semi-finished goods that are manufactured from component items. Proper configuration is critical for accurate costing and production tracking.

Assembly Item Types

Type Tracking Compatible Components
Inventory Assembly Quantity only Inventory, Non-Inventory, Other Charge, Service
Serialized Assembly Serial numbers All above + Serialized Inventory, Lot Numbered
Lot Numbered Assembly Lot numbers All above + Serialized Inventory, Lot Numbered
Component Restriction

Serialized and lot numbered items can ONLY be members of assemblies if the assembly itself is serialized or lot numbered. Regular (non-tracked) assemblies cannot contain lot or serial components.

Assembly Costing After Build

After an assembly is built, it is treated like an inventory item for costing purposes:

Assembly Cost Calculation: ┌─────────────────────────────────────────────────────────────────┐ │ Built Assembly Cost = Sum of Component Costs at Build Time │ ├─────────────────────────────────────────────────────────────────┤ │ Component A: 10 units × $5.00 = $50.00 │ │ Component B: 5 units × $8.00 = $40.00 │ │ Component C: 2 units × $15.00 = $30.00 │ ├─────────────────────────────────────────────────────────────────┤ │ Assembly Cost: $120.00 │ │ │ │ This becomes the "purchase price" for FIFO/Average calculations │ └─────────────────────────────────────────────────────────────────┘

Assembly Item Record Key Fields

Field Location Purpose
Costing Method Inventory subtab Average, Standard, FIFO, Lot, Specific
Build Time Manufacturing subtab Default time to build one unit (for scheduling)
WIP Cost Template Manufacturing subtab GL accounts for WIP transactions
Manufacturing Routing Manufacturing subtab Default routing for production
Phantom Manufacturing subtab If checked, explodes to components (no WIP)
Income Account Accounting subtab Leave blank if NOT sold directly (components only)
Non-Saleable Assemblies

To make an assembly available for production but NOT for direct sale, don't assign an income account. Without an income account, the item won't appear in sales transaction item lists but will be available for work orders. It sells only as part of a higher-level finished goods assembly.

Work Orders

Work Order Lifecycle

┌─────────────────────────────────────────────────────────────────┐ │ WORK ORDER WORKFLOW │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ ┌──────────┐ ┌──────────┐ ┌──────────┐ ┌──────────┐ │ │ │ Planned │───▶│ Released │───▶│In Process│───▶│ Built │ │ │ │ │ │ │ │ │ │ │ │ │ │ Not │ │ Ready to │ │ Components│ │ Assembly │ │ │ │ committed│ │ start │ │ consumed │ │ received │ │ │ └──────────┘ └──────────┘ └──────────┘ └──────────┘ │ │ │ │ │ │ │ │ │ ▼ ▼ ▼ │ │ │ ┌────────────────────────────────────────┐ │ │ │ │ Work Order Issue: Pull components │ │ │ │ │ Work Order Build: Complete assembly │ │ │ │ │ Work Order Close: Finalize WO │ │ │ │ └────────────────────────────────────────┘ │ │ │ │ │ └──────▶ Cancelled (if not started) │ │ │ └─────────────────────────────────────────────────────────────────┘

Work Order Types

Type Description When to Use
Standard Normal production run Regular manufacturing
Special Order Linked to sales order Make-to-order scenarios
Rework Fix defective items Quality issues, returns
Disassembly Break down assemblies Salvage, reclaim components

Work Order Transactions

Transaction Inventory Impact GL Impact
Work Order Issue Components → WIP Dr WIP, Cr Inventory
Work Order Build WIP → Finished Goods Dr FG Inventory, Cr WIP
Work Order Close Clears remaining WIP Variance to COGS/Overhead

Manufacturing Work In Process (WIP)

WIP tracking separates production into three distinct phases, enabling granular control over inventory movement and GL posting during long manufacturing cycles.

Enabling WIP

Path: Setup → Company → Enable Features → Items & Inventory Check: Work Orders (prerequisite) Check: Manufacturing Work In Process Also required on Work Order record: Check: WIP checkbox (per work order) Item Setup: Assembly item must be configured as WIP assembly (see Setting Up Items as WIP Assemblies)

WIP Three-Transaction Process

Transaction Purpose When to Use
Work Order Issue Move raw materials to WIP (material consumption) When components are pulled from stock to production floor
Work Order Completion Record assemblies built and stocked When finished goods are completed
Work Order Close Reconcile variances, clear WIP When production is finalized

WIP General Ledger Impact

WIP GL Flow: ┌─────────────────────────────────────────────────────────────────┐ │ WORK ORDER ISSUE (Material Consumption) │ ├─────────────────────────────────────────────────────────────────┤ │ Debit: Component Asset - WIP Location │ │ Credit: Component Asset - Inventory Location │ │ │ │ Effect: Components move from raw material to WIP account │ └─────────────────────────────────────────────────────────────────┘ │ ▼ ┌─────────────────────────────────────────────────────────────────┐ │ WORK ORDER COMPLETION (Assembly Built) │ ├─────────────────────────────────────────────────────────────────┤ │ Debit: Assembly Asset - Inventory Location │ │ Credit: Assembly Asset - WIP Location │ │ │ │ Effect: Finished goods enter inventory from WIP │ └─────────────────────────────────────────────────────────────────┘ │ ▼ ┌─────────────────────────────────────────────────────────────────┐ │ WORK ORDER CLOSE (Reconciliation) │ ├─────────────────────────────────────────────────────────────────┤ │ Debit: Assembly Asset - WIP (to clear remaining balance) │ │ Credit: Component Asset - WIP (to clear remaining balance) │ │ Debit/Credit: WIP Variance Account (difference) │ │ │ │ Effect: WIP cleared, variances posted to expense │ └─────────────────────────────────────────────────────────────────┘

WIP Location Requirement

Critical: WIP Line Location

On ALL WIP transactions (Issue, Completion, Close), you must identify a WIP location for line items. The WIP line location MUST match across all three transactions for the same work order. Mismatched locations will cause GL reconciliation issues.

Backflush vs. Manual Issue

Method How It Works When to Use
Backflush Components auto-consumed at completion based on BOM ratios High-volume, low-variance production
Manual Issue Explicit Work Order Issue transaction for each material pull High-value components, variable consumption
Hybrid Backflush some components, manually issue others Mix of high/low value materials

Manufacturing Routing

Routing Structure

Routings define the sequence of operations (steps) required to manufacture an assembly. Each operation links to a work center with associated labor and machine costs.

Example Routing: LAPTOP-PRO-15 ┌────────────────────────────────────────────────────────────────┐ │ Op# Operation Work Center Setup Run Time │ ├────────────────────────────────────────────────────────────────┤ │ 10 PCB Assembly SMT-LINE-01 30 min 5 min/unit │ │ 20 Burn-In Test TEST-STATION 0 min 60 min/batch │ │ 30 Final Assembly ASSY-LINE-02 15 min 15 min/unit │ │ 40 Quality Inspection QC-STATION 0 min 10 min/unit │ │ 50 Packaging PACK-AREA 5 min 5 min/unit │ └────────────────────────────────────────────────────────────────┘

Work Center Configuration

Setting Purpose Example
Labor Rate Cost per hour of labor $25/hour
Machine Rate Cost per hour of machine time $50/hour
Overhead Rate Applied overhead per hour $15/hour
Capacity Available hours per day 8 hours, 2 shifts
Efficiency Actual vs planned ratio 85%
Routing vs BOM

BOM defines WHAT components are needed. Routing defines HOW the product is made. For simple assemblies, routing may be optional. For complex products, routing enables accurate labor costing and capacity planning.

Enabling Manufacturing Routing

Path: Setup → Company → Enable Features → Items & Inventory Check: Manufacturing Routing and Work Center Prerequisites: - Work Orders feature enabled - Manufacturing Work In Process recommended - Standard or Average costing on assembly items Constraint: Routing can only be used with WIP-enabled work orders.

Creating Work Centers

Work centers are employee groups that perform specific manufacturing steps. Create as Static Employee Groups with Manufacturing Work Center settings.

Path: Lists → Relationships → Groups → New Step 1: Create Static Employee Group - Kind of Group: Static - Kind of Members: Employee - Name: "Assembly Line 1" or "Quality Control Team" Step 2: Enable as Work Center - Check: Manufacturing Work Center - Assign Location(s) where this work center operates - For OneWorld: Can assign multiple locations within subsidiary

Manufacturing Cost Template

Cost templates define standard rates for calculating production costs. Assign templates to routing operations.

Cost Category Description Typical Use
Labor Setup Cost of time for labor to set up a run Machine changeover, tooling prep
Labor Run Cost of time for labor during production Operator time per unit
Machine Setup Machine cost for setup time Equipment depreciation during prep
Machine Run Machine cost during production Equipment cost per hour
Overhead Indirect costs applied to production Facility, utilities, supervision

Operation Tasks

When you save a WIP work order with a routing, NetSuite automatically creates operation task records for each routing step. These appear on the work order's Operations subtab.

Task Field Purpose
Sequence Number Order of operations (10, 20, 30...)
Work Center Assigned team/machine group
Setup Time Minutes to prepare for this operation
Run Rate Minutes per unit to complete operation
Planned Start/End Scheduled times (backward scheduled from due date)
Actual Time Recorded when completing operation

Advanced Manufacturing SuiteApp

The Advanced Manufacturing SuiteApp extends core routing capabilities into the Advanced Manufacturing Work Bench, providing enhanced production planning, scheduling, and shop floor management.

Advanced Manufacturing Capabilities

Feature Description
Work Bench Central hub for production management and work order control
Work Instructions Define detailed instructions for each operation
Material Usage Association Link specific materials to specific operations
Resource Supply vs Demand Compare capacity against scheduled work
Planned Start/End Times Detailed scheduling at operation level
Downtime & Loss Tracking Account for production downtime and material loss
Labor Codes Categorize labor activities for reporting
Shop Floor Travelers Generate printed work instructions for production floor

Shop Floor Travelers

A traveler is a system-generated document providing shop floor personnel with manufacturing specifications: process steps, materials, quantities, work instructions, and barcodes for mobile devices.

Traveler Contents: ┌─────────────────────────────────────────────────────────────────┐ │ WORK ORDER TRAVELER WO-12345 │ ├─────────────────────────────────────────────────────────────────┤ │ Assembly: LAPTOP-PRO-15 Qty: 50 Due: 2025-01-15 │ ├─────────────────────────────────────────────────────────────────┤ │ Op 10: PCB Assembly │ │ Work Center: SMT-LINE-01 │ │ Materials: PCB-MAIN (50), CPU-CHIP (50), RAM-8GB (100) │ │ Instructions: Follow SOP-PCB-001 │ │ Barcode: [||||||||||||] │ ├─────────────────────────────────────────────────────────────────┤ │ Op 20: Burn-In Test │ │ Work Center: TEST-STATION │ │ Instructions: 48-hour burn-in per QA-BURN-001 │ │ Barcode: [||||||||||||] │ ├─────────────────────────────────────────────────────────────────┤ │ ...continues for all operations... │ └─────────────────────────────────────────────────────────────────┘
SuiteApp Requirement

Advanced Manufacturing requires the Advanced Manufacturing SuiteApp installation. Contact NetSuite Professional Services for implementation support. The SuiteApp is available for accounts with Manufacturing features.

Manufacturing Mobile SuiteApp

Manufacturing Mobile enables production operators to use mobile scanners to report shop floor data. No Advanced Manufacturing or WMS license is required — included with any NetSuite Manufacturing feature purchase.

Manufacturing Mobile Features

Feature Purpose
Shifts Define manufacturing work shifts for scheduling
Badge IDs Operator identification for labor tracking
Downtime Reason Codes Categorize production downtime (machine, material, etc.)
Scrap Reason Codes Classify defective material reasons
Component Consumption Track raw material usage via scanner
Finished Good Production Record completed units

Shop Floor Process Flow

Manufacturing Mobile 4-Step Process: ┌─────────────────────────────────────────────────────────────────┐ │ 1. Material Staging (future) │ │ Stage materials at work center │ ├─────────────────────────────────────────────────────────────────┤ │ 2. Component Consumption │ │ Scan badge → Scan work order → Scan components → Confirm │ │ Records: Work Order Issue transaction │ ├─────────────────────────────────────────────────────────────────┤ │ 3. Finished Good Production │ │ Scan badge → Scan work order → Enter qty built → Confirm │ │ Records: Work Order Completion transaction │ ├─────────────────────────────────────────────────────────────────┤ │ 4. Inventory & Financial Updates │ │ System posts GL entries and updates inventory │ └─────────────────────────────────────────────────────────────────┘ Key Benefit: Each step is independent — data collection separated from financial/inventory posting for flexibility.

Badge ID Setup

Operators require badge IDs for shop floor transactions. Badges can have effective dates and can be transferred between employees.

Badge ID Configuration: Path: Manufacturing Mobile → Administration → Badge IDs Fields: - Badge Number: Unique identifier (often barcode-friendly) - Employee: Assigned operator - Effective From/To: Date range for badge validity - Transfer: Can reassign to different employee if needed
Dual Functionality

Manufacturing Mobile and WMS can run on the same scanner. Operators can perform both manufacturing and warehouse activities from a single device, switching between apps as needed.

Material Requirements Planning (MRP)

MRP Calculation Flow

┌─────────────────────────────────────────────────────────────────┐ │ MRP CALCULATION │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ Inputs Calculation │ │ ┌────────────────┐ ┌────────────────┐ │ │ │ Demand │ │ │ │ │ │ • Sales Orders │───────────▶│ Net │ │ │ │ • Forecasts │ │ Requirements │ │ │ │ • Safety Stock │ │ │ │ │ └────────────────┘ └───────┬────────┘ │ │ │ │ │ ┌────────────────┐ │ │ │ │ Supply │ ▼ │ │ │ • On Hand │───────────▶┌────────────────┐ │ │ │ • PO In Transit│ │ Planned │ │ │ │ • Work Orders │ │ Orders │ │ │ └────────────────┘ │ • Purchase Req │ │ │ │ • Work Orders │ │ │ ┌────────────────┐ └───────┬────────┘ │ │ │ Parameters │ │ │ │ │ • Lead Times │ ▼ │ │ │ • Lot Sizes │───────────▶┌────────────────┐ │ │ │ • BOM │ │ Scheduled │ │ │ └────────────────┘ │ Releases │ │ │ └────────────────┘ │ │ │ └─────────────────────────────────────────────────────────────────┘

MRP Planning Parameters

Parameter Description Where Set
Lead Time Days to procure/produce Item record
Safety Stock Minimum inventory buffer Item or Item-Location
Reorder Point Qty that triggers reorder Item or Item-Location
Preferred Stock Level Target inventory level Item or Item-Location
Lot Size Minimum order quantity Item or Vendor-Item
Planning Horizon Days to look ahead MRP setup

MRP Output Actions

Action Meaning Response
Create PO Need to order purchased items Generate purchase order
Create WO Need to manufacture assembly Generate work order
Expedite Existing order needed sooner Move delivery date earlier
Defer Order can be pushed out Move delivery date later
Cancel Order no longer needed Review for cancellation
2025.2: MRP Enhancements

New version includes enhanced MRP regeneration performance, better handling of phantom BOMs, and improved exception messaging with actionable recommendations.

Supply Planning (MRP)

NetSuite Supply Planning replaces legacy Time-Phased Planning with improved performance and features. Use the Supply Planning Workbench to manage planned orders and balance supply with demand.

Three Key Planning Criteria

Criteria Description Considerations
Planning Horizon Days into future the plan covers Longer horizons = more data; test performance with your volume
Planning Scope Items/locations included in plan Demand sources per location
Planning Rules Transfer rules for supply chain Define how items move between locations

Supply Planning Workbench Actions

Action Description Creates
Firm Planned Order Lock order to prevent replanning Firmed planned order
Release Planned Order Convert to actual transaction Purchase Order, Work Order, or Transfer Order
Change Order Modify existing order dates/qty Updated order
Performance Consideration

MRP may fail with 730-day planning horizons and 100,000+ item-locations, but completes successfully at 400 days. Test your planning horizon with your data volume before production use.

Demand Planning

Demand Planning analyzes historical sales data to forecast future demand. Use projections to generate supply plans that maintain optimal inventory levels.

Projection Methods

Method Description Best For
Linear Regression Projects trend based on historical data Items with steady growth/decline
Moving Average Averages recent periods for forecast Stable demand, minor fluctuations
Seasonal Average Accounts for seasonal patterns Products with predictable seasonal demand
Sales Forecast Uses manually entered forecasts New products, special promotions
Current Demand Uses existing opportunities, quotes, sales orders Known pipeline, make-to-order

Demand Plan Calculation

Required Parameters: - Projection Method: How to forecast demand - Period Type: Day, Week, Month - Historical Period: Periods of past data to analyze - Projection Period: Periods to forecast forward - Location: (if Multi-Location Inventory enabled) Example Seasonal Widget: ┌──────────┬────────────────────────────────────────────────┐ │ Month │ Jan Feb Mar Apr May Jun Jul Aug Sep... │ ├──────────┼────────────────────────────────────────────────┤ │ Forecast │ 50 50 100 200 100 50 50 200 150... │ │ Pattern │ Low Low Ramp Peak Low Low Low Peak Med │ └──────────┴────────────────────────────────────────────────┘ Supply plan accounts for 15-day lead time, ordering ahead of peaks.
Demand Planning Limits

Demand Planning processes up to 10,000 items per run. For larger item catalogs, run multiple demand plans by item segment or category.

Demand to Supply Flow

Demand Planning Workflow: ┌─────────────────────────────────────────────────────────────────┐ │ 1. Calculate Demand Plan │ │ Transactions → Manufacturing → Calculate Demand Plan │ │ Select items, projection method, periods │ ├─────────────────────────────────────────────────────────────────┤ │ 2. Review Demand Plan │ │ Review projected demand by item/period │ │ Adjust manually if needed │ ├─────────────────────────────────────────────────────────────────┤ │ 3. Calculate Supply Plan │ │ Transactions → Manufacturing → Calculate Supply Plan │ │ Generate suggested POs and WOs from demand plan │ ├─────────────────────────────────────────────────────────────────┤ │ 4. Review Supply Plan │ │ Supply Planning Workbench │ │ Firm or release planned orders │ ├─────────────────────────────────────────────────────────────────┤ │ 5. Create Orders │ │ Release planned orders to create POs/WOs/TOs │ └─────────────────────────────────────────────────────────────────┘

Production Costing

Cost Components

Cost Type Source Calculation
Material BOM components Qty × Component Cost
Labor Routing operations Hours × Labor Rate
Machine Routing operations Hours × Machine Rate
Overhead Work centers Hours × Overhead Rate
Setup Routing operations Setup Time × Rates

Variance Analysis

Variance Type Calculation Cause
Material Usage Actual qty - Standard qty Scrap, yield loss
Material Price Actual price - Standard price Price changes, substitutions
Labor Efficiency Actual hours - Standard hours Training, equipment issues
Labor Rate Actual rate - Standard rate Overtime, different crew
Standard Costing Setup

For variance tracking, items must use Standard costing method. Set standard costs before production begins. Update standards periodically (typically annually) through cost rollups.

Shop Floor Control

Production Execution Features

Feature Purpose Configuration
Operation Tracking Track progress per routing step Enable in routing setup
Labor Entry Record actual labor time Time entry or Work Order Completion
Component Substitution Use alternate components Define alternates on BOM
Scrap Tracking Record scrap quantities On Work Order Issue/Build
Batch/Serial Tracking Traceability in production Item-level lot/serial settings

Quality Control Integration

  • Inspection points: Define QC checks at routing operations
  • Hold/Release: Quality hold status on work orders
  • Non-conformance: Track defects and dispositions
  • Certificates: Generate COA/COC documents

Outsourced Manufacturing

Outsourced Manufacturing enables managing production performed by external vendors (subcontractors). Track materials sent to vendors and assemblies returned.

Outsourced Manufacturing Workflow

Outsourced Manufacturing Flow: ┌─────────────────────────────────────────────────────────────────┐ │ 1. Create Work Order │ │ - Assembly item with Outsourced Manufacturing enabled │ │ - Link to outsource vendor │ ├─────────────────────────────────────────────────────────────────┤ │ 2. Ship Components to Vendor │ │ - Create Item Fulfillment to vendor location │ │ - Components consumed from inventory │ ├─────────────────────────────────────────────────────────────────┤ │ 3. Vendor Completes Production │ │ - (External process - vendor manufactures assemblies) │ ├─────────────────────────────────────────────────────────────────┤ │ 4. Receive Finished Goods │ │ - Create Item Receipt from vendor │ │ - Assemblies added to inventory │ ├─────────────────────────────────────────────────────────────────┤ │ 5. Process Vendor Bill │ │ - Bill for manufacturing services │ │ - Post outsourced cost to assembly │ └─────────────────────────────────────────────────────────────────┘

When to Use Outsourced Manufacturing

  • Capacity overflow: Internal production cannot meet demand
  • Specialized processes: Vendor has equipment/expertise you lack
  • Cost optimization: Outsourcing is more economical
  • Secondary vendors: Backup manufacturing capability

Engineering Change Orders (ECO)

Engineering Change Orders document and authorize changes to Bill of Materials. Use ECOs to maintain revision history and approval audit trails.

ECO Use Cases

Change Type Description ECO Justification
Component Substitution Replace one component with another Part obsolescence, cost reduction
Quantity Change Modify component quantities Design optimization, yield improvement
Component Addition Add new component to BOM Feature enhancement, quality improvement
Component Removal Remove component from BOM Cost reduction, design simplification
Routing Change Modify manufacturing process Efficiency improvement, equipment change

ECO Workflow

ECO Process: ┌─────────────────────────────────────────────────────────────────┐ │ 1. Create ECO Record │ │ - Document proposed change │ │ - Identify affected BOMs/assemblies │ │ - Set effective date │ ├─────────────────────────────────────────────────────────────────┤ │ 2. Review & Approval │ │ - Engineering review │ │ - Cost impact analysis │ │ - Management approval (workflow) │ ├─────────────────────────────────────────────────────────────────┤ │ 3. Implementation │ │ - Update BOM revision (set new effective dates) │ │ - Update routing if needed │ │ - Communicate to production │ ├─────────────────────────────────────────────────────────────────┤ │ 4. Verification │ │ - Verify changes applied correctly │ │ - Close ECO record │ └─────────────────────────────────────────────────────────────────┘

Industry-Specific Manufacturing Patterns

Discrete Manufacturing

  • Standard BOMs with revision control
  • Detailed routing with operation tracking
  • Serial number tracking for finished goods
  • Configure-to-order with matrix items

Process Manufacturing

  • Formula-based BOMs with yield percentages
  • Batch/lot tracking for ingredients
  • Co-products and by-products
  • Potency and grade tracking

Job Shop

  • Project-linked work orders
  • One-off BOMs per customer order
  • Flexible routing sequences
  • Extensive labor time tracking

Repetitive Manufacturing

  • Backflush material consumption
  • Production line rates vs work orders
  • Kanban-style replenishment
  • Minimal WIP tracking

Manufacturing Implementation Checklist

Feature Enablement

☐
Enable Work Orders feature (Setup → Company → Enable Features)
☐
Enable Advanced Bill of Materials feature
☐
Enable Manufacturing Work In Process (WIP) if tracking production phases
☐
Enable Manufacturing Routing and Work Center if using routings
☐
Enable Demand Planning for forecasting

Item & BOM Setup

☐
Create assembly items with appropriate costing method (Standard/Average for routing)
☐
Verify lot/serial components only in lot/serial assemblies
☐
Create Advanced BOMs with component quantities and yield settings
☐
Configure BOM revisions with effective dates (no overlaps)
☐
Set location-specific default BOMs if multi-plant

Routing & Work Center Setup

☐
Create work centers as static employee groups
☐
Define cost categories (Labor Setup/Run, Machine Setup/Run)
☐
Create cost templates with standard rates
☐
Build manufacturing routings with operations and times

WIP & GL Configuration

☐
Set up WIP Asset accounts by location
☐
Configure WIP variance accounts
☐
Define WIP cost templates on assembly items

Planning Configuration

☐
Set lead times on item records
☐
Configure safety stock and reorder points
☐
Set planning horizon (test performance with your data volume)
☐
Define planning rules for supply chain

Testing & Validation

☐
Test full WIP cycle: Issue → Completion → Close
☐
Verify GL entries for each WIP transaction
☐
Test variance posting at work order close
☐
Run demand plan and verify projections
☐
Generate supply plan and test planned order release

Mobile & Shop Floor (Optional)

☐
Install Manufacturing Mobile SuiteApp
☐
Configure shifts and badge IDs
☐
Define downtime and scrap reason codes
☐
Test mobile component consumption and production workflows

Training & Go-Live

☐
Train planners on demand/supply planning
☐
Train shop floor on WIP transactions or mobile app
☐
Train cost accountants on variance analysis
Chapter 8.4

SuitePeople HR

Human capital management, employee self-service, performance management, and workforce analytics in NetSuite.

SuitePeople HR Overview

SuitePeople HR extends NetSuite's native employee records into a full human capital management (HCM) solution. The module provides core HR functions, workforce management, and employee experience tools integrated with financials.

SuitePeople Module Components

Component Functionality License
Core HR Employee records, org charts, job management Base SuitePeople
Employee Center Self-service portal for employees Base SuitePeople
Performance Management Goals, reviews, competencies SuitePeople Performance
Workforce Analytics HR dashboards, metrics, trends SuitePeople Analytics
Payroll US payroll processing SuitePayroll (separate)
SuitePeople vs Standard Employee

Standard NetSuite includes basic employee records. SuitePeople adds comprehensive HR features including position management, onboarding workflows, and employee experience tools. Evaluate which level fits your HR needs.

Core HR Management

Employee Record Structure

┌─────────────────────────────────────────────────────────────────┐ │ EMPLOYEE DATA MODEL │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ Employee Record │ │ ├── Personal Information │ │ │ ├── Name, Address, Contact │ │ │ ├── Emergency Contacts │ │ │ └── Documents (I-9, W-4, etc.) │ │ │ │ │ ├── Employment Details │ │ │ ├── Position / Job Title │ │ │ ├── Department / Class │ │ │ ├── Supervisor Hierarchy │ │ │ ├── Location / Work Assignment │ │ │ └── Employment Type (FT, PT, Contract) │ │ │ │ │ ├── Compensation │ │ │ ├── Salary / Hourly Rate │ │ │ ├── Pay Frequency │ │ │ └── Benefits Elections │ │ │ │ │ └── History │ │ ├── Job History │ │ ├── Compensation History │ │ └── Performance Reviews │ │ │ └─────────────────────────────────────────────────────────────────┘

Position Management

Concept Description Use Case
Position Specific seat in organization Track vacancies, headcount planning
Job Job description template Standardize titles, compensation bands
Job Family Group of related jobs Career paths, reporting
Grade Level Compensation tier Salary bands, equity

Organization Structure

  • Supervisory hierarchy: Approval routing, organizational chart
  • Departments: Cost center alignment, reporting
  • Locations: Work site, compliance (tax nexus)
  • Classes: Business unit or division segmentation

Employee Lifecycle Management

Lifecycle Stages

┌─────────────────────────────────────────────────────────────────┐ │ EMPLOYEE LIFECYCLE │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ ┌──────────┐ ┌──────────┐ ┌──────────┐ ┌──────────┐ │ │ │ Hire │──▶│Onboarding│──▶│ Active │──▶│Offboarding│ │ │ │ │ │ │ │ │ │ │ │ │ │ Offer │ │ Tasks │ │ Day-to- │ │ Exit │ │ │ │ Letter │ │ Forms │ │ Day Work │ │ Tasks │ │ │ │ Position │ │ Training │ │ Reviews │ │ Clearance│ │ │ └──────────┘ └──────────┘ └──────────┘ └──────────┘ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ ▼ ▼ ▼ │ │ │ ┌──────────┐ ┌──────────┐ ┌──────────┐ │ │ │ │ Employee │ │ Changes │ │ Termed │ │ │ └───────▶│ Record │──▶│ Transfers│──▶│ Inactive │ │ │ │ Created │ │ Promo │ │ Archived │ │ │ └──────────┘ └──────────┘ └──────────┘ │ │ │ └─────────────────────────────────────────────────────────────────┘

Onboarding Workflow

☐
Create employee record with start date
☐
Assign onboarding task list (documents, training)
☐
Employee completes self-service tasks
☐
HR reviews and approves submissions
☐
System provisions access and equipment

Employment Changes

Change Type Workflow Records Updated
Promotion Approval chain, effective date Position, Title, Compensation
Transfer Manager approval, HR processing Department, Location, Supervisor
Compensation Change Budget approval, HR approval Salary, Pay Frequency
Termination Exit workflow, final pay calc Status, Term Date, Access revoked

Employee Self-Service

Employee Center Features

Feature Employee Actions Manager Actions
Personal Info Update address, phone, emergency contacts View team directory
Time & Attendance Submit timesheets, request time off Approve time, view team calendar
Expenses Submit expense reports Approve expense reports
Pay Stubs View pay history, W-2s N/A
Benefits View/enroll in benefits N/A
Goals/Reviews Set goals, complete self-assessment Set team goals, conduct reviews

Employee Center Configuration

☐
Configure Employee Center role with appropriate permissions
☐
Customize dashboard with relevant portlets
☐
Set up time-off request types and policies
☐
Configure expense report categories and limits
☐
Brand Employee Center with company logo/colors

Performance Management

Performance Review Cycle

Annual Performance Cycle: ┌─────────────────────────────────────────────────────────────────┐ │ Q1 Q2 Q3 Q4 Q1 (Next) │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ ┌────────┐ ┌────────┐ ┌────────┐ ┌────────┐ ┌────────┐ │ │ │ Goal │ │Mid-Year│ │Progress│ │ Annual │ │ Comp │ │ │ │Setting │ │Check-in│ │ Update │ │ Review │ │Planning│ │ │ └────────┘ └────────┘ └────────┘ └────────┘ └────────┘ │ │ │ │ │ │ │ │ │ ▼ ▼ ▼ ▼ ▼ │ │ Employee Manager Employee 360 Input Merit/Bonus │ │ Goals Feedback Updates Calibration Decisions │ │ │ └─────────────────────────────────────────────────────────────────┘

Performance Review Components

Component Description Configuration
Goals Individual objectives Goal types, templates, cascading
Competencies Skills and behaviors Competency library, job mapping
Self-Assessment Employee reflection Review forms, rating scales
Manager Review Supervisor evaluation Review templates, workflows
360 Feedback Multi-rater input Rater selection, anonymity
Calibration Cross-team consistency Calibration meetings, adjustments
Rating Scale Design

Use clear, behaviorally-anchored rating scales (e.g., 1-5 with descriptions). Avoid forced distribution unless required. Train managers on consistent rating application.

Time & Attendance

Time Tracking Options

Method Description Best For
Weekly Timesheets Standard hours per project/task Professional services, project costing
Time Clock Clock in/out with punch times Hourly workers, manufacturing
Case Time Tracking Time against support cases Support teams, billable hours
Project Time Entry Time against project tasks Consulting, professional services

Time-Off Management

Feature Configuration Notes
Time-Off Types PTO, Sick, Bereavement, etc. Separate accrual tracking per type
Accrual Rules Per pay period, annual, tenure-based Configure per employee class
Carryover Max carryover, use-it-or-lose-it Policy varies by location/type
Blackout Dates Restrict requests during busy periods Optional per department

Workforce Analytics

Key HR Metrics

Metric Calculation Target
Headcount Active employees by period Plan vs actual
Turnover Rate Separations / Avg headcount Industry benchmark
Time to Fill Days from req open to hire < 45 days typical
Cost per Hire Total recruiting costs / Hires Varies by role level
Absenteeism Unplanned absence days / Work days < 3%
Revenue per Employee Total revenue / FTE Industry benchmark

HR Dashboards

  • Executive Dashboard: Headcount trends, cost analysis, turnover
  • Manager Dashboard: Team metrics, pending approvals, open positions
  • HR Operations: Onboarding status, compliance items, case queue
  • Compensation: Salary distribution, merit budgets, equity analysis

HR Compliance

Compliance Areas

Area Requirements NetSuite Support
I-9 Verification Employment eligibility within 3 days Document storage, reminders
EEO Reporting Annual EEO-1 filing (100+ employees) Demographic fields, reports
FLSA Overtime, exempt classification Employee type tracking
ACA Health coverage reporting Hours tracking, 1095-C forms
State Requirements Varies by state (leave, pay) Configurable policies
Data Privacy

Employee data is sensitive. Configure field-level permissions, audit trails, and data retention policies. Consider GDPR requirements for international employees.

SuitePeople Implementation Checklist

☐
Enable SuitePeople features and licenses
☐
Configure organization structure (depts, locations, classes)
☐
Set up position and job management
☐
Configure employee record custom fields
☐
Set up onboarding/offboarding workflows
☐
Configure Employee Center role and permissions
☐
Set up time-off types and accrual policies
☐
Configure performance review cycle (if using)
☐
Build HR dashboards and reports
☐
Migrate existing employee data
☐
Train HR team and managers
Chapter 8.5

SuiteCommerce

B2B and B2C e-commerce, web store management, catalog configuration, and omnichannel retail with NetSuite SuiteCommerce.

SuiteCommerce Overview

SuiteCommerce provides native e-commerce capabilities integrated with NetSuite ERP. The platform supports B2C retail sites, B2B customer portals, and hybrid scenarios with real-time inventory, pricing, and order management.

SuiteCommerce Product Options

Product Description Best For
SuiteCommerce Advanced (SCA) Full-featured, customizable e-commerce Complex B2C, high customization needs
SuiteCommerce Standard Pre-built templates, faster deployment Simple B2C, quick launch
SuiteCommerce MyAccount Self-service customer portal B2B, customer account management
SuiteCommerce InStore Point-of-sale for retail locations Brick-and-mortar, omnichannel
Architecture

SuiteCommerce Advanced runs on Node.js with Backbone.js frontend. It uses SuiteScript for backend customization and SCSS for styling. Understanding this stack is essential for advanced customizations.

Web Site Setup

Site Configuration Components

┌─────────────────────────────────────────────────────────────────┐ │ SUITECOMMERCE ARCHITECTURE │ ├─────────────────────────────────────────────────────────────────┤ │ │ │ ┌─────────────────────────────────────────────────────────┐ │ │ │ WEB SITE │ │ │ │ Domain, SSL, Hosting Configuration │ │ │ └─────────────────────────────────────────────────────────┘ │ │ │ │ │ ┌─────────────────────────────────────────────────────────┐ │ │ │ SHOPPING DOMAIN │ │ │ │ Customer-facing storefront experience │ │ │ └─────────────────────────────────────────────────────────┘ │ │ │ │ │ ┌────────────┐ ┌────────────┐ ┌────────────┐ │ │ │ ITEMS │ │ PRICING │ │ INVENTORY │ │ │ │ Catalog │ │ Price Lvls │ │ Locations │ │ │ │ Web Items │ │ Promotions │ │ Real-time │ │ │ └────────────┘ └────────────┘ └────────────┘ │ │ │ │ │ ┌─────────────────────────────────────────────────────────┐ │ │ │ CHECKOUT FLOW │ │ │ │ Cart → Shipping → Payment → Confirmation │ │ │ └─────────────────────────────────────────────────────────┘ │ │ │ └─────────────────────────────────────────────────────────────────┘

Web Site Record Configuration

Setting Purpose Location
Domain Primary site URL Web Site record
Subsidiary Financial entity for orders Web Site record
Default Location Inventory source for orders Web Site record
Default Currency Pricing display currency Web Site record
Customer Form Registration form template Web Site Setup

Catalog Management

Web Store Item Setup

Field/Tab Purpose Best Practice
Display in Web Site Make item visible online Check for all sellable items
Web Store Description Product description HTML SEO-optimized, customer-friendly
Store Display Name Name shown on website Clear, searchable title
Item Images Product photos Multiple angles, consistent size
URL Component URL slug for product page Hyphenated, keyword-rich
Meta Tags SEO title/description Unique per item, include keywords

Category Structure

☐
Create category hierarchy (3-4 levels max)
☐
Assign items to categories
☐
Configure category display order
☐
Add category images and descriptions
☐
Set up faceted navigation filters

Matrix Items (Variants)

Matrix items represent products with variations (size, color). Parent item holds common attributes; child items represent specific combinations.

Matrix Example: T-Shirt ├── Parent: T-SHIRT-BASIC │ ├── Child: T-SHIRT-BASIC-S-RED │ ├── Child: T-SHIRT-BASIC-M-RED │ ├── Child: T-SHIRT-BASIC-L-RED │ ├── Child: T-SHIRT-BASIC-S-BLUE │ ├── Child: T-SHIRT-BASIC-M-BLUE │ └── Child: T-SHIRT-BASIC-L-BLUE Options on Web: Size: [S] [M] [L] Color: [Red] [Blue]

Pricing & Promotions

Price Level Strategy

Approach Description Use Case
Base Price Standard retail price Anonymous/guest shoppers
Customer Price Levels Tiered pricing by customer group Wholesale, VIP customers
Quantity Pricing Volume discounts Bulk purchase incentives
Customer-Specific Negotiated prices per customer B2B contracts

Promotion Types

Type Example Configuration
Percent Discount 20% off all shirts Promotion record with % rate
Dollar Discount $10 off orders over $50 Minimum order threshold
BOGO Buy 2 get 1 free Buy X Get Y promotion
Free Shipping Free shipping on $75+ Shipping method promotion
Promo Code Enter code SAVE15 Coupon code required
Promotion Stacking

Configure promotion rules carefully to prevent unintended discount stacking. Use "Best Discount Only" or set explicit exclusion rules. Test all promotion combinations before launch.

Checkout & Payment Processing

Checkout Flow

Standard Checkout Flow: ┌─────────────────────────────────────────────────────────────────┐ │ │ │ ┌────────┐ ┌────────┐ ┌────────┐ ┌────────┐ │ │ │ Cart │──▶│ Info │──▶│Shipping│──▶│Payment │ │ │ │ │ │ │ │ │ │ │ │ │ │ Items │ │ Guest/ │ │ Address│ │ Credit │ │ │ │ Qty │ │ Login │ │ Method │ │ PayPal │ │ │ │ Update │ │ Create │ │ Rate │ │ etc. │ │ │ └────────┘ └────────┘ └────────┘ └────────┘ │ │ │ │ │ │ │ ▼ │ │ │ ┌────────────┐ │ │ │ │ Confirm │ │ │ │ │ Review │ │ │ │ │ Place Ord │ │ │ │ └────────────┘ │ │ │ │ │ │ ▼ ▼ │ │ ┌────────────────────────────────────────────────┐ │ │ │ ORDER CREATED IN NETSUITE │ │ │ │ Sales Order → Fulfillment → Invoice │ │ │ └────────────────────────────────────────────────┘ │ │ │ └─────────────────────────────────────────────────────────────────┘

Payment Gateway Integration

Gateway Features Notes
NetSuite Payment Gateway Native integration, PCI compliant Included with SuiteCommerce
PayPal Express checkout, PayPal Credit Popular for B2C
Stripe Cards, Apple Pay, Google Pay SuiteApp integration
Authorize.net Traditional gateway, CIM Established merchant accounts

Guest vs Registered Checkout

  • Guest: No account required, faster checkout, less friction
  • Registered: Save payment/shipping, order history, reorder
  • Hybrid: Guest checkout with optional account creation post-purchase

B2B Commerce Features

B2B vs B2C Differences

Feature B2C B2B
Pricing Standard retail Customer-specific, contract
Checkout Credit card, PayPal Terms, PO numbers, approval
Catalog Public, full catalog Restricted by customer
Quantities Individual units Bulk, case packs, MOQs
Account Optional/guest Required, multi-user

MyAccount Portal Features

☐
View order history and status
☐
Reorder from previous purchases
☐
View/pay invoices online
☐
Manage saved addresses
☐
View account balance/credits
☐
Request quotes (if enabled)
☐
Submit returns/RMAs

SEO & Analytics

SEO Configuration

Element Location Best Practice
Page Titles Item/Category Meta Title Keyword | Brand (60 chars)
Meta Descriptions Item/Category Meta Description Compelling, keyword-rich (160 chars)
URL Structure URL Component field Descriptive, hyphenated slugs
Canonical URLs Site configuration Prevent duplicate content
Sitemap Auto-generated Submit to search engines

Analytics Integration

  • Google Analytics: Track traffic, conversions, user behavior
  • Enhanced E-commerce: Product impressions, cart, checkout funnel
  • Google Tag Manager: Manage tracking tags without code changes
  • NetSuite Reports: Web store sales, conversion rates

SuiteCommerce Implementation Checklist

☐
Configure Web Site record and domain
☐
Set up SSL certificate
☐
Create category structure
☐
Configure items for web display
☐
Upload product images
☐
Set up pricing and promotions
☐
Configure payment gateway
☐
Set up shipping methods and rates
☐
Configure tax calculation
☐
Customize theme/branding
☐
Set up email notifications
☐
Configure SEO settings
☐
Integrate analytics tracking
☐
Test complete order flow
Chapter 8.6

SuiteProjects

Project accounting, resource management, and professional services automation with SuiteProjects.

SuiteProjects Overview

SuiteProjects provides comprehensive project management within NetSuite, enabling organizations to manage project-based work from opportunity through delivery and billing. It's particularly powerful for professional services firms, agencies, and any business that bills by time, milestone, or project completion.

Capability Basic Projects SuiteProjects OpenAir (PSA)
Project Records ✓ ✓ ✓
Task Management Basic Advanced Advanced
Time Tracking Basic ✓ ✓
Resource Management — ✓ Advanced
Project Budgeting Basic ✓ ✓
Revenue Recognition Manual ✓ ✓
Gantt Charts — ✓ ✓
Multi-Project Dashboards — ✓ ✓

Project Structure

SuiteProjects uses a hierarchical structure to organize work:

PROJECT HIERARCHY
═══════════════════════════════════════════════════════════════

PROJECT (Job Record)
├── Project Tasks
│   ├── Task 1: Requirements Phase
│   │   ├── Subtask 1.1: Discovery Workshops
│   │   ├── Subtask 1.2: Document Requirements
│   │   └── Subtask 1.3: Sign-off
│   │
│   ├── Task 2: Design Phase
│   │   ├── Subtask 2.1: Solution Architecture
│   │   └── Subtask 2.2: Technical Design
│   │
│   └── Task 3: Build Phase
│       ├── Subtask 3.1: Configuration
│       ├── Subtask 3.2: Development
│       └── Subtask 3.3: Testing
│
├── Project Resources (Assigned Employees)
│   ├── Project Manager
│   ├── Senior Consultant
│   └── Developer
│
├── Project Budget
│   ├── Labor Budget
│   ├── Expense Budget
│   └── Material Budget
│
└── Billing Schedule
    ├── Milestone 1: Requirements Complete
    ├── Milestone 2: Design Approved
    └── Milestone 3: Project Go-Live

Project Setup

Setup → Accounting → Project Management

Setting Options Recommendation
Project Type Standard, Template Create templates for repeatable projects
Billing Type Time & Materials, Fixed Price, Non-Billable Align with contract terms
Percent Complete Override Enabled/Disabled Enable for milestone-based rev rec
Project Cost Rules Employee cost, Standard cost, Custom Employee cost for accurate margins
Allow Time Entry Per project Enable on billable projects

Time Tracking

Accurate time tracking is the foundation of project accounting:

1
Time Entry
→
2
Approval
→
3
Costing
→
4
Billing
→
5
Revenue

Time Entry Methods

Method Best For Pros Cons
Weekly Timesheet Most employees Grid view, fast entry, copy week Less detail per entry
Time Record Detailed tracking Full detail, notes, memo Slower entry
Employee Center Self-service Easy access, mobile-friendly Limited permissions
Mobile Field workers Real-time entry, location Requires app
Time Approval Workflow

Set up workflow approval for time entries to catch issues before billing. Route by project manager, department head, or threshold amount. Consider same-day approval for accurate WIP reporting.

Resource Management

Match the right resources to projects based on skills, availability, and utilization targets:

RESOURCE ALLOCATION VIEW
═══════════════════════════════════════════════════════════════

Resource         Mon    Tue    Wed    Thu    Fri    Util%
─────────────────────────────────────────────────────────────
Sarah (PM)
├── Project A    4h     4h     4h     4h     4h     50%
├── Project B    2h     2h     2h     2h     2h     25%
└── Admin        2h     2h     2h     2h     2h     25%
                                              TOTAL: 100%

Mike (Sr. Cons)
├── Project A    8h     8h     8h     —      —      60%
├── Project C    —      —      —      8h     8h     40%
└── Bench        —      —      —      —      —      0%
                                              TOTAL: 100%

Lisa (Developer)
├── Project B    8h     8h     8h     8h     8h     100%
└── Available    —      —      —      —      —      0%
                                              TOTAL: 100%

Target Utilization: 75% (billable)
───────────────────────────────────────────────────────────────

Resource Management Features

  • Skills Matrix: Track employee certifications, technologies, and expertise levels
  • Availability Calendar: View PTO, training, and existing allocations
  • Utilization Targets: Set billable hour targets by role or department
  • Capacity Planning: Forecast resource needs vs. availability
  • Resource Request: Project managers request resources from resource pool
Project Manager Role (2025.2)

New dedicated role for project managers with optimized permissions for project oversight without full accounting access. Includes project dashboard, resource requests, and budget monitoring.

Project Budgeting

Control project profitability with detailed budgets:

Budget Category Components Key Metrics
Labor Budget Hours × Rate by role, Resource assignments ETC (Estimate to Complete), EAC (Estimate at Completion)
Expense Budget Travel, software, subcontractors Spend vs. budget, reimbursable %
Material Budget Items charged to project Markup, pass-through costs
Revenue Budget Milestone amounts, T&M estimates Recognized vs. billed vs. contracted 
PROJECT BUDGET EXAMPLE
═══════════════════════════════════════════════════════════════

PROJECT: ERP Implementation - Acme Corp
Contract Value: $250,000
────────────────────────────────────────────────────────────────

LABOR BUDGET
Role              Hours    Rate     Budget     Actual    Var
──────────────────────────────────────────────────────────────
Project Manager    200    $175    $35,000    $32,000   $3,000
Sr. Consultant     400    $200    $80,000    $72,000   $8,000
Consultant         600    $150    $90,000    $85,000   $5,000
Developer          200    $125    $25,000    $28,000  ($3,000)
──────────────────────────────────────────────────────────────
Labor Total                       $230,000   $217,000  $13,000

EXPENSE BUDGET
Category                  Budget     Actual    Var
──────────────────────────────────────────────────────────────
Travel                   $10,000     $8,500   $1,500
Software/Licenses         $5,000     $5,000      $0
Training Materials        $2,500     $1,800     $700
──────────────────────────────────────────────────────────────
Expense Total            $17,500    $15,300   $2,200

SUMMARY
──────────────────────────────────────────────────────────────
Contract Value:                    $250,000
Total Costs:                       $232,300
Gross Margin:                       $17,700 (7.1%)
Target Margin:                          10%
Status:                            ⚠ Below target

Billing Methods

SuiteProjects supports multiple billing approaches:

Time & Materials (T&M)

  • Bill actual hours worked at agreed rates
  • Charge expenses at cost or with markup
  • Create invoices from unbilled time/expenses
  • Best for: Scope-variable projects, ongoing support

Fixed Price

  • Bill predetermined amounts at milestones
  • Track costs internally for margin analysis
  • Revenue recognition based on % complete
  • Best for: Well-defined scope, predictable work

Retainer/Prepaid

  • Collect payment upfront
  • Draw down against time/expenses
  • Alert when retainer runs low
  • Best for: Ongoing services, advisory relationships
Revenue Recognition Considerations

Project billing method must align with ASC 606 / IFRS 15 revenue recognition requirements. Fixed price projects typically use percentage-of-completion; T&M recognizes as services delivered. Consult with accounting on appropriate treatment.

Project Financials

Track profitability at every level:

PROJECT PROFITABILITY STATEMENT
═══════════════════════════════════════════════════════════════

PROJECT: ERP Implementation - Acme Corp
Period: Q4 2025
───────────────────────────────────────────────────────────────

REVENUE
  Milestone Billings                         $175,000
  T&M Billings                                $25,000
  Expense Reimbursements                       $8,500
───────────────────────────────────────────────────────────────
  TOTAL REVENUE                              $208,500

COST OF SERVICES
  Direct Labor (at cost rates)               $145,000
  Contractor Costs                            $15,000
  Travel & Expenses                            $8,500
  Other Direct Costs                           $2,300
───────────────────────────────────────────────────────────────
  TOTAL COS                                  $170,800

GROSS PROFIT                                  $37,700
Gross Margin %                                 18.1%
───────────────────────────────────────────────────────────────

KEY METRICS
  Budget Variance:                      $15,200 favorable
  Schedule Variance:                    On track (2 days ahead)
  Scope Changes:                        3 approved (+$12,000)
  Customer Satisfaction:                4.5/5.0

Project Dashboard & Reporting

Report Category Key Reports Audience
Project Health Project Status Summary, Milestone Tracker, Risk Register Project Managers, Executives
Financial Project P&L, WIP Report, Budget vs. Actual Finance, Project Managers
Resource Utilization by Employee, Capacity Forecast, Bench Report Resource Managers, HR
Billing Unbilled Time, Unbilled Expenses, Billing Backlog Finance, Project Managers
Time Timesheet Status, Time by Project/Task, Approval Queue HR, Project Managers

Integration Points

SUITEPROJECTS INTEGRATION MAP
═══════════════════════════════════════════════════════════════

                    ┌─────────────────┐
                    │   OPPORTUNITY   │
                    │   (CRM)         │
                    └────────┬────────┘
                             │ Convert to Project
                             ▼
┌─────────────┐      ┌─────────────────┐      ┌─────────────┐
│  CUSTOMER   │◄────►│    PROJECT      │◄────►│  EMPLOYEE   │
│  Record     │      │    (Job)        │      │  Records    │
└─────────────┘      └────────┬────────┘      └──────┬──────┘
                              │                      │
        ┌─────────────┬───────┼───────┬─────────────┼────────┐
        │             │       │       │             │        │
        ▼             ▼       ▼       ▼             ▼        ▼
┌───────────┐  ┌───────────┐  │  ┌───────────┐  ┌────────┐  │
│  INVOICES │  │  EXPENSES │  │  │ PURCHASE  │  │  TIME  │  │
│           │  │           │  │  │  ORDERS   │  │  ENTRY │  │
└───────────┘  └───────────┘  │  └───────────┘  └────────┘  │
        │             │       │       │             │        │
        └─────────────┴───────┼───────┴─────────────┴────────┘
                              │
                              ▼
                    ┌─────────────────┐
                    │   FINANCIALS    │
                    │   (GL, Rev Rec) │
                    └─────────────────┘

Industry Applications

Professional Services

Core use case for SuiteProjects. Track client engagements, manage consultant utilization, bill by project/phase/milestone, and measure realization rates. Focus on gross margin by project and practice area.

Software/SaaS

Implementation projects for new customers, professional services engagements, and internal development projects. Track billable vs. R&D time, measure implementation margin, and capitalize development costs per ASC 350-40.

Manufacturing

Engineering projects, new product development, capital projects, and plant improvements. Track project costs against capital budgets, manage cross-functional teams, and integrate with work orders.

Consultant Insight

The #1 SuiteProjects implementation challenge is getting employees to enter time accurately and promptly. Build time entry into daily habits: require approval before expenses, tie to performance reviews, and make it as easy as possible. Weekly timesheet view with ability to copy previous week is key for adoption.

Implementation Checklist

☐
Enable Projects feature and configure preferences
☐
Set up project templates for repeatable engagements
☐
Define billing rates by role/employee
☐
Configure cost rates for margin calculation
☐
Set up time approval workflow
☐
Define utilization targets by role
☐
Create project dashboards for PM and executives
☐
Train employees on time entry procedures
☐
Test billing workflow end-to-end
☐
Validate revenue recognition rules with accounting
Chapter 8.7

Planning & Budgeting

Financial planning, budgeting, and forecasting with NSPB (NetSuite Planning and Budgeting).

Planning & Budgeting Overview

NetSuite Planning and Budgeting (NSPB) extends NetSuite's native budgeting with enterprise-grade planning capabilities including driver-based modeling, multi-scenario planning, and collaborative workflow. It replaces spreadsheet-based planning with a connected, auditable platform.

Capability Native Budgets NSPB
Budget Entry Per account, per period Model-driven with calculations
Scenarios Single version Unlimited what-if scenarios
Workflow Basic approval Multi-stage with task ownership
Driver Models — Revenue drivers, headcount, etc.
Forecasting Manual reforecast Rolling forecasts, AI predictions
Consolidation Manual Automated multi-subsidiary
Reporting Budget vs. Actual reports Interactive dashboards, variance drill-down
Data Integration Manual import Bi-directional NetSuite sync

Planning Process Architecture

ANNUAL PLANNING CYCLE
═══════════════════════════════════════════════════════════════

Q3 (Sep-Oct)              Q4 (Nov-Dec)             Q1 (Jan-Mar)
─────────────────────────────────────────────────────────────────

┌─────────────┐     ┌─────────────┐     ┌─────────────┐
│  STRATEGIC  │────►│   BUDGET    │────►│   FINAL     │
│  PLANNING   │     │  BUILDING   │     │  APPROVAL   │
└─────────────┘     └─────────────┘     └─────────────┘
      │                   │                   │
      ▼                   ▼                   ▼
┌───────────────┐  ┌───────────────┐  ┌───────────────┐
│ • CEO targets │  │ • Dept inputs │  │ • Board review│
│ • Growth goals│  │ • Iterations  │  │ • Final lock  │
│ • Initiatives │  │ • Consolidate │  │ • Publish     │
└───────────────┘  └───────────────┘  └───────────────┘

ROLLING FORECAST (Continuous)
─────────────────────────────────────────────────────────────────
     Q1          Q2          Q3          Q4          Q1+1
┌─────────┐ ┌─────────┐ ┌─────────┐ ┌─────────┐ ┌─────────┐
│ Actual  │ │ Actual  │ │Forecast │ │Forecast │ │Forecast │
│ (Lock)  │ │ (Lock)  │ │(Active) │ │(Active) │ │(Active) │
└─────────┘ └─────────┘ └─────────┘ └─────────┘ └─────────┘

Each month: Lock completed period, extend forecast horizon

NSPB Components

Component Purpose Key Features
Models Define data structure and calculations Dimensions, hierarchies, formulas, drivers
Forms Data entry interface Grid-based input, validation rules, spreads
Workflows Approval and task management Task assignment, status tracking, notifications
Reports Analysis and presentation Dashboards, variance analysis, drill-down
Scenarios What-if analysis Base, best case, worst case, working
Integrations Data synchronization NetSuite GL, subledger, external sources

Dimension Design

Dimensions define the granularity and structure of your planning model:

PLANNING MODEL DIMENSIONS
═══════════════════════════════════════════════════════════════

REQUIRED DIMENSIONS
┌─────────────────────────────────────────────────────────────┐
│  ACCOUNT          TIME           SCENARIO        VERSION    │
│  ────────         ────           ────────        ───────    │
│  GL Accounts      Months         Budget          Working    │
│  Hierarchy        Quarters       Forecast        Submitted  │
│  Roll-ups         Years          Best Case       Approved   │
│                   Fiscal/Cal     Worst Case      Published  │
└─────────────────────────────────────────────────────────────┘

ORGANIZATIONAL DIMENSIONS
┌─────────────────────────────────────────────────────────────┐
│  SUBSIDIARY       DEPARTMENT     LOCATION        CLASS      │
│  ──────────       ──────────     ────────        ─────      │
│  Legal entities   Cost centers   Facilities      Products   │
│  Hierarchy        Roll-up        Geography       Segments   │
│  Elimination      Allocation     Consolidation   P&L split  │
└─────────────────────────────────────────────────────────────┘

CUSTOM DIMENSIONS (Examples)
┌─────────────────────────────────────────────────────────────┐
│  PRODUCT          CUSTOMER       PROJECT         EMPLOYEE   │
│  ───────          ────────       ───────         ────────   │
│  Product lines    Segments       Capital proj    Headcount  │
│  SKU groups       Key accounts   Initiatives     Roles      │
│  Categories       Territories    Programs        Levels     │
└─────────────────────────────────────────────────────────────┘

Driver-Based Planning

Move beyond line-item budgeting to models that calculate from business drivers:

Revenue Drivers

REVENUE MODEL
═══════════════════════════════════════════════════════════════

SUBSCRIPTION REVENUE (SaaS)
───────────────────────────────────────────────────────────────
  Beginning ARR                           $10,000,000
  + New Logo ARR        Deals × ASP       $2,500,000
  + Expansion ARR       Base × Rate        $1,000,000
  - Churn               Base × Churn %      ($500,000)
  ───────────────────────────────────────────────────
  Ending ARR                              $13,000,000

  MRR = ARR / 12                           $1,083,333
  Recognition timing adjustments             ($50,000)
  ───────────────────────────────────────────────────
  GAAP Revenue                             $1,033,333

PRODUCT REVENUE (Wholesale)
───────────────────────────────────────────────────────────────
  Units Sold           Customers × Avg Units    100,000
  × Average Price      List - Discount %           $150
  × Seasonal Factor    Index by month             1.15
  ───────────────────────────────────────────────────
  Gross Revenue                            $17,250,000
  - Returns            Gross × Return %      ($862,500)
  ───────────────────────────────────────────────────
  Net Revenue                              $16,387,500

Expense Drivers

EXPENSE MODELS
═══════════════════════════════════════════════════════════════

HEADCOUNT-DRIVEN
───────────────────────────────────────────────────────────────
  Headcount by Role × Salary × Month         = Salaries
  Headcount × Benefits Rate                  = Benefits
  Headcount × Payroll Tax Rate               = Payroll Taxes
  Sales Headcount × Quota × Commission %     = Commissions
  Engineering HC × Tool Cost/Employee        = Software
  Total HC × Rent/Employee                   = Facilities

REVENUE-DRIVEN
───────────────────────────────────────────────────────────────
  Revenue × COGS %                           = Cost of Goods
  Revenue × Marketing %                      = Marketing
  Revenue × Hosting % (SaaS)                 = Infrastructure
  Revenue × Bad Debt %                       = Bad Debt

ACTIVITY-DRIVEN
───────────────────────────────────────────────────────────────
  Support Tickets × Cost/Ticket              = Support Costs
  Transactions × Processing Fee              = Payment Fees
  Travel Days × Per Diem                     = Travel
  Shipments × Avg Freight                    = Shipping
Multivariate Predictions (2025.2)

NSPB now supports AI-powered multivariate predictions. Combine historical data with external factors (seasonality, economic indicators) to generate more accurate forecasts. Models learn from actuals vs. forecast variance to improve over time.

Workflow & Approval

Manage the planning process with structured workflows:

1
Initialize
→
2
Input
→
3
Review
→
4
Consolidate
→
5
Approve
Stage Owner Actions
Initialize FP&A Set targets, seed data, open forms
Input Department Heads Enter budget, add notes, submit
Review Finance Business Partners Validate, request changes, approve
Consolidate FP&A Roll up, adjust, model scenarios
Approve CFO / Board Final review, lock, publish

Scenario Analysis

Model multiple outcomes to understand risk and opportunity:

SCENARIO COMPARISON
═══════════════════════════════════════════════════════════════

                        Budget      Best Case   Worst Case   Likely
                        ──────      ─────────   ──────────   ──────
ASSUMPTIONS
  Revenue Growth        15%         25%         5%           18%
  New Customers         50          75          25           55
  Churn Rate            8%          5%          15%          7%
  Headcount Adds        20          25          10           22

RESULTS
  Revenue              $50M        $62M        $41M         $53M
  Gross Margin         65%         68%         58%          66%
  Operating Expenses   $35M        $38M        $30M         $36M
  EBITDA               $10M        $15M        $2M          $11M
  EBITDA Margin        20%         24%         5%           21%
  Cash Balance (EOY)   $25M        $35M        $15M         $27M
  Runway (months)      18          24          12           19

PROBABILITY WEIGHTED
───────────────────────────────────────────────────────────────
  Expected Revenue = (Budget×40%) + (Best×20%) + (Worst×10%) + (Likely×30%)
                   = $51.5M

Reporting & Analysis

Report Type Purpose Audience
Budget vs. Actual Period performance to budget All managers
Variance Analysis Drill into favorable/unfavorable Finance, department heads
Forecast vs. Prior Forecast Track forecast accuracy FP&A
Scenario Comparison Side-by-side what-if Executive team
Driver Dashboard KPI performance vs. plan Executives, board
Workflow Status Budget completion tracking FP&A

NetSuite Integration

NSPB ↔ NETSUITE DATA FLOW
═══════════════════════════════════════════════════════════════

FROM NETSUITE TO NSPB
───────────────────────────────────────────────────────────────
┌─────────────┐                          ┌─────────────┐
│  NetSuite   │                          │    NSPB     │
│             │                          │             │
│ GL Actuals  │ ────────────────────────►│ Actuals     │
│ Headcount   │  (Scheduled sync)        │ Dimension   │
│ COA         │                          │ Members     │
│ Dimensions  │                          │ Seed Data   │
└─────────────┘                          └─────────────┘

FROM NSPB TO NETSUITE
───────────────────────────────────────────────────────────────
┌─────────────┐                          ┌─────────────┐
│    NSPB     │                          │  NetSuite   │
│             │                          │             │
│ Approved    │ ────────────────────────►│ Budget      │
│ Budget      │  (On approval/publish)   │ Records     │
└─────────────┘                          └─────────────┘

SYNC CONSIDERATIONS
───────────────────────────────────────────────────────────────
• Match dimension members (account numbers, dept codes)
• Handle hierarchy differences (NSPB can be more granular)
• Currency conversion timing
• Period alignment (fiscal calendar sync)
• Consolidation elimination entries

Industry Applications

Software/SaaS

Model ARR, MRR, customer cohorts, and unit economics. Plan by customer segment, product line, and geography. Forecast bookings to revenue conversion with proper deferred revenue timing. Track CAC payback and LTV in planning.

Manufacturing

Capacity planning tied to production volume. Model material costs with commodity price assumptions. Workforce planning by shift and skill level. Capital expenditure modeling for equipment and facilities.

Professional Services

Headcount-driven model with utilization assumptions. Plan revenue by practice area, client, and project type. Model hiring pipeline to meet capacity needs. Forecast bench costs and contractor spend.

Common Implementation Pitfalls
  • Over-engineering: Start simple; add complexity only when needed
  • Dimension explosion: Too many dimensions = slow calculations, user confusion
  • Stale actuals: Schedule frequent syncs; outdated actuals undermine trust
  • Unclear ownership: Define who owns each budget line and approve
  • No documentation: Document assumptions, formulas, and processes
Consultant Insight

The biggest NSPB success factor is executive sponsorship. If the CFO doesn't actively use the system for decision-making, adoption will fail. Start with a high-visibility use case (board deck, investor reporting) that executives care about. Once leadership relies on NSPB for key decisions, department-level adoption follows naturally.

Implementation Checklist

☐
Define planning calendar and cycle timeline
☐
Document dimension requirements and hierarchies
☐
Design driver models for revenue and expenses
☐
Configure NetSuite integration mappings
☐
Build input forms for each audience
☐
Define workflow stages and ownership
☐
Create standard reports and dashboards
☐
Test end-to-end planning cycle
☐
Train budget owners on input forms
☐
Document assumptions and model logic
Chapter 8.8

Compliance 360

Regulatory compliance, audit management, and governance with NetSuite Compliance 360.

Compliance 360 Overview

NetSuite Compliance 360 provides comprehensive compliance management capabilities including control monitoring, audit management, policy enforcement, and regulatory reporting. It helps organizations meet SOX, GDPR, HIPAA, and other regulatory requirements while reducing compliance costs.

Capability Manual Compliance Compliance 360
Control Monitoring Periodic manual testing Continuous automated monitoring
Evidence Collection Spreadsheets, email Centralized, automated capture
Audit Preparation Weeks of gathering On-demand reporting
Issue Tracking Manual follow-up Workflow-driven remediation
Policy Management Document repositories Version-controlled with attestation
Risk Assessment Annual spreadsheet exercise Dynamic risk scoring

Compliance Framework

COMPLIANCE 360 ARCHITECTURE
═══════════════════════════════════════════════════════════════

┌─────────────────────────────────────────────────────────────┐
│                    GOVERNANCE LAYER                          │
│  ┌──────────────┐ ┌──────────────┐ ┌──────────────┐         │
│  │   Policies   │ │  Procedures  │ │   Standards  │         │
│  └──────────────┘ └──────────────┘ └──────────────┘         │
└─────────────────────────────────────────────────────────────┘
                          │
                          ▼
┌─────────────────────────────────────────────────────────────┐
│                     CONTROL LAYER                            │
│  ┌──────────────┐ ┌──────────────┐ ┌──────────────┐         │
│  │  Preventive  │ │  Detective   │ │  Corrective  │         │
│  │  Controls    │ │  Controls    │ │  Controls    │         │
│  └──────────────┘ └──────────────┘ └──────────────┘         │
└─────────────────────────────────────────────────────────────┘
                          │
                          ▼
┌─────────────────────────────────────────────────────────────┐
│                   MONITORING LAYER                           │
│  ┌──────────────┐ ┌──────────────┐ ┌──────────────┐         │
│  │  Automated   │ │   Evidence   │ │   Exception  │         │
│  │  Testing     │ │   Capture    │ │   Alerts     │         │
│  └──────────────┘ └──────────────┘ └──────────────┘         │
└─────────────────────────────────────────────────────────────┘
                          │
                          ▼
┌─────────────────────────────────────────────────────────────┐
│                    REPORTING LAYER                           │
│  ┌──────────────┐ ┌──────────────┐ ┌──────────────┐         │
│  │   Dashboards │ │ Audit Reports│ │  Attestation │         │
│  └──────────────┘ └──────────────┘ └──────────────┘         │
└─────────────────────────────────────────────────────────────┘

Control Library

Build and maintain a library of controls mapped to regulatory requirements:

Control Type Description Examples
Preventive Stop issues before they occur Approval workflows, segregation of duties, field validation
Detective Identify issues that occurred Exception reports, variance analysis, reconciliations
Corrective Remediate identified issues Adjusting entries, system corrections, process fixes
IT General Controls System-level controls Access management, change control, backup/recovery
Application Controls Process-specific controls Data validation, calculation checks, interface controls

Control Mapping

CONTROL TO REGULATION MAPPING
═══════════════════════════════════════════════════════════════

CONTROL: Vendor Invoice Three-Way Match

Description: System requires match of PO, receipt, and invoice
             before payment approval

Frequency:   Continuous (automated)
Type:        Preventive / Application Control
Owner:       Accounts Payable Manager

REGULATORY MAPPING:
───────────────────────────────────────────────────────────────
┌─────────────┬──────────────┬───────────────────────────────┐
│ Framework   │ Requirement  │ Description                   │
├─────────────┼──────────────┼───────────────────────────────┤
│ SOX         │ Section 404  │ Financial reporting controls  │
│ COSO        │ Control Act. │ Transaction authorization     │
│ COBIT       │ BAI06        │ IT change management          │
│ ISO 27001   │ A.12.1.2     │ Change management             │
└─────────────┴──────────────┴───────────────────────────────┘

TEST PROCEDURE:
1. Generate report of invoices processed in period
2. Sample 25 invoices (statistical sample)
3. Verify PO, receipt, and invoice match for each
4. Document any exceptions
5. Assess control effectiveness

Automated Testing

Configure automated control tests that run continuously:

Test Type Mechanism Example
Transaction Tests Saved search with criteria Identify invoices without PO approval
Access Reviews Role/permission analysis Users with conflicting duties
Threshold Monitoring Value-based alerts Purchases over limit without approval
Trend Analysis Period-over-period comparison Unusual expense patterns
Configuration Checks System setting validation Password policy compliance
Compliance 360 AI Assistant (2025.2)

New AI-powered assistant helps interpret regulatory requirements, suggests relevant controls, and identifies gaps in coverage. Ask natural language questions like "What controls do we need for HIPAA PHI access?" and receive actionable recommendations.

Audit Management

Streamline internal and external audit processes:

1
Plan
→
2
Request
→
3
Collect
→
4
Review
→
5
Report

Audit Workflow

Phase Activities Compliance 360 Support
Planning Define scope, timeline, team Audit project templates, risk-based scoping
Information Request Auditor requests (PBC list) Request management, assignment tracking
Evidence Collection Gather supporting documentation Automated evidence capture, secure portal
Testing Control testing, substantive tests Test results documentation, exception tracking
Findings Issue identification, remediation Issue workflow, remediation tracking
Reporting Opinion, management letter Report generation, status dashboards

Risk Assessment

RISK SCORING MATRIX
═══════════════════════════════════════════════════════════════

                    IMPACT
           │  Low   Medium   High   Critical
    ───────┼─────────────────────────────────
    High   │   M       H       C       C
LIKELIHOOD │
    Medium │   L       M       H       C
           │
    Low    │   L       L       M       H
    ───────┴─────────────────────────────────

L = Low Risk (Accept/Monitor)
M = Medium Risk (Mitigate)
H = High Risk (Priority Mitigation)
C = Critical Risk (Immediate Action)

RISK FACTORS:
───────────────────────────────────────────────────────────────
• Financial Impact:     Dollar value at risk
• Regulatory Impact:    Fines, sanctions exposure
• Operational Impact:   Business disruption
• Reputational Impact:  Brand/customer trust
• Control Effectiveness: Existing mitigation strength

Regulatory Frameworks

Compliance 360 includes pre-built frameworks for common regulations:

Framework Scope Key Requirements
SOX (Sarbanes-Oxley) Public companies Section 302/404, internal controls over financial reporting
GDPR EU data subjects Data protection, consent, right to erasure, breach notification
HIPAA Healthcare (US) PHI protection, access controls, audit trails
PCI-DSS Payment card data Cardholder data security, network controls
SOC 2 Service organizations Trust services criteria (Security, Availability, etc.)
CCPA/CPRA California residents Consumer privacy rights, opt-out, data access

Segregation of Duties

Monitor and enforce separation of conflicting responsibilities:

SEGREGATION OF DUTIES MATRIX
═══════════════════════════════════════════════════════════════

                          CREATE   APPROVE   POST   RECONCILE
─────────────────────────────────────────────────────────────────
Vendor Master              X         X        —        —
Purchase Orders            X         X        —        —
Vendor Bills               —         X        X        —
Payments                   —         X        X        X
Bank Reconciliation        —         —        —        X

X = Conflicting duties (cannot be same person)

CONFLICT MONITORING:
───────────────────────────────────────────────────────────────
• Role Analysis:        Review permission combinations
• Transaction Monitoring: Same user on conflicting steps
• Exception Reporting:  Override and emergency access
• Periodic Review:      Quarterly SoD assessment
Common SoD Violations
  • Same user creates and approves purchase orders
  • AP clerk has vendor master edit access
  • Payroll admin can edit own compensation
  • IT admin has production and development access
  • Single user for journal entry creation and posting

Industry Applications

Healthcare

HIPAA compliance for protected health information (PHI). Track access to patient data, monitor for unauthorized disclosure, manage business associate agreements, and maintain breach notification procedures. 2025.2 AI Assistant helps interpret complex HIPAA requirements.

Software/SaaS

SOC 2 and ISO 27001 for customer trust. Demonstrate security, availability, and confidentiality controls to enterprise customers. Document change management, access controls, and incident response. Essential for selling to regulated industries.

Manufacturing

SOX compliance for public companies, export controls (ITAR/EAR), and environmental regulations (EPA). Quality management system controls for ISO 9001. Supply chain compliance for conflict minerals and modern slavery reporting.

Nonprofit

Single Audit (Uniform Guidance) for federal grant recipients. Fund accounting controls, cost allocation compliance, and donor restriction monitoring. Grant-specific reporting and compliance attestation.

Reporting & Dashboards

Report Purpose Audience
Control Effectiveness Test results and exceptions by control Compliance team, auditors
Risk Heat Map Visual risk distribution Executive team, board
Issue Aging Open findings by severity and age Compliance, management
SoD Violations Conflicting access/actions IT security, audit
Audit Status Request fulfillment, timeline Compliance team, auditors
Policy Attestation Employee acknowledgment tracking HR, compliance
Consultant Insight

The ROI of Compliance 360 comes from audit preparation time savings. Companies typically spend weeks gathering evidence for external audits. With proper setup, this drops to days. Start by mapping your most frequent audit requests to automated evidence capture. The AI Assistant in 2025.2 accelerates gap analysis significantly—use it during initial implementation to identify missing controls.

Implementation Checklist

☐
Identify applicable regulatory requirements
☐
Document existing control environment
☐
Map controls to regulatory frameworks
☐
Configure automated control testing
☐
Set up segregation of duties monitoring
☐
Define risk assessment methodology
☐
Configure audit management workflows
☐
Set up evidence capture automation
☐
Create compliance dashboards
☐
Train compliance team on system use