Salora’s Guide to Navigating NetSuite: Financial Reporting Part 2

Welcome back, NetSuite Newbies! In Part 1, we covered the basics of accessing and running pre-built reports in NetSuite. Now, let’s take it up a notch and dive into more advanced customization options and some pro tips to make your reports shine.

Why Customize Financial Reports?

Customizations are like customizing your coffee order. Sure, a plain coffee is fine, but adding that extra shot of espresso and white mocha syrup, swapping out whole milk for breve, politely requesting to not add water makes it just right for you (or me, specifically). Customizing financial reports ensures you get the exact insights you need to drive your business forward.

Step 1: Advanced Customization

Alright, you’ve mastered the basics. Now it’s time to get advanced. Here’s how you can further customize your financial reports to get even more insights:

Adding Formulas & Calculations

To add custom formulas to your financial reports, follow these steps:

  1. Navigate to the Report Builder:Go to Reports > Saved Reports (or Custom Reports depending on your setup).Select the report you want to customize. If you need to create a new report, choose New Report and select the type of financial report you need.
  2. Open the Customize Report Interface:Once the report is open, click on the Customize button. This will take you to the Report Builder interface.
  3. Access the Columns Section:In the Report Builder, you will see several tabs at the top, such as Edit Columns, Filters, Sorting, etc. Click on the Edit Columns tab. This is where you can add, remove, and modify the columns in your report.
  4. Add a Formula Column:In the Edit Columns tab, you will see a list of available columns on the left and the columns currently included in your report on the right. To add a custom formula, look for the option to add a new column. This is often labeled as Add Field or Add Formula. Click on Add Formula.
  5. Define Your Formula:A dialog box will appear where you can define your custom formula.Enter the formula you need. For example, to calculate Gross Profit Margin, you might use a formula like (Total Revenue – Total Cost) / Total Revenue. Name your formula column appropriately, such as “Gross Profit Margin.”
  6. Apply and Save:Once you’ve defined your formula, click OK or Apply to add it to your report. Review the column settings to ensure everything looks correct. Save your customized report by clicking Save or Save As (if you want to create a new report template).

Example:

  • Formulas & Calculations:Gross Profit Margin: (Total Revenue – Total Cost) / Total RevenueReturn on Investment (ROI): (Net Profit / Cost of Investment) * 100

Conditional Formatting

To highlight specific data points with conditional formatting:

  1. Access the Customize Report Interface:Go to the Customize button as before.
  2. Navigate to the Conditional Formatting Option:In the Report Builder, find the option for Conditional Formatting.
  3. Set Up Rules:Define the rules for formatting. For example, you can set up a rule to highlight expenses that exceed a certain threshold in red.

Chart Integration

To integrate charts and graphs:

  1. Add a Chart:In the Report Builder, look for an option to add a chart or graph.Select the type of chart that best represents your data (e.g., bar chart, line graph).
  2. Configure the Chart:Choose the data series and parameters for your chart.

Note: Advanced customizations are where you can really make the reports work for you, showing exactly what you need to know in a format that makes sense.

Step 2: Scheduling & Automating Reports in NetSuite

Scheduling and automating reports in NetSuite allows you to streamline your reporting process, ensuring that key stakeholders receive up-to-date information without manual intervention. Here’s a detailed explanation of how to set this up:

Scheduling Reports

Example: Weekly Sales Report

  1. Navigate to the Saved Reports:Go to Reports > Saved Reports (or Custom Reports depending on your setup).Select the report you want to schedule (e.g., Weekly Sales Report).
  2. Open the Customize Report Interface:Click on Customize to open the report settings.
  3. Access the Scheduling Options:In the customization interface, look for the More Options or Scheduling tab. Click on Schedule.
  4. Set the Schedule:Choose the frequency at which you want the report to run (e.g., daily, weekly, monthly).Specify the exact day and time for the report to run (e.g., every Monday at 8:00 AM).
  5. Configure Email Delivery:Set up email delivery to send the report directly to your inbox or other stakeholders.Enter the email addresses of the recipients.Customize the email subject and message if needed.
  6. Save the Schedule:Save the scheduling settings and exit the customization interface.

Result: The Weekly Sales Report will now be automatically generated and emailed to the specified recipients every Monday at 8:00 AM.

Email Delivery

Example: Monthly Financial Summary

  1. Navigate to the Saved Reports:Go to Reports > Saved Reports. Select the report you want to automate (e.g., Monthly Financial Summary).
  2. Open the Customize Report Interface:Click on Customize to open the report settings.
  3. Access the Email Options:In the customization interface, find the Email or Distribution settings. Click on Email.
  4. Configure Email Delivery:Set up the recipients’ email addresses.Specify the frequency of email delivery (e.g., monthly on the first day of the month).Customize the email subject and message content if needed.
  5. Save the Email Settings:Save the email delivery settings and exit the customization interface.

Result: The Monthly Financial Summary will be automatically generated and sent via email to the specified recipients on the first day of each month.

Saving Custom Reports as Templates

Example: Custom Expense Report Template

  1. Navigate to the Saved Reports:Go to Reports > Saved Reports. Select the report you want to customize and save as a template (e.g., Custom Expense Report).
  2. Open the Customize Report Interface:Click on Customize to open the report settings.
  3. Customize the Report:Make the necessary customizations, such as adding specific columns, filters, or formulas.
  4. Save the Report as a Template:Click on Save As to create a new template.Give the template a descriptive name (e.g., “Quarterly Expense Report Template”).
  5. Set Up Scheduling and Email Delivery:Follow the steps above to schedule and set up email delivery for this custom report template.

Result: You now have a custom expense report template that can be easily accessed and scheduled for regular automated delivery.

Real-Life Scenario

Scenario: CFO of a Growing Tech Startup Imagine you’re the CFO of a growing tech startup. By scheduling and automating your financial reports, you ensure that every Monday morning, you and your team receive the latest financial data without lifting a finger. This means more time for strategy meetings and less time fiddling with spreadsheets. You set up a Weekly Sales Report to be emailed to the sales team and a Monthly Financial Summary to be sent to the executive team. Additionally, you save a custom expense report template to quickly generate and schedule expense reports for quarterly reviews.

Step 3: Analyzing Your Reports in NetSuite

Analyzing your reports is crucial to understanding your business’s financial health and making informed decisions. Here’s a detailed explanation of how to effectively analyze your reports using NetSuite:

Comparative Analysis

Example: Monthly Sales Comparison

  1. Run the Report:Go to Reports > Saved Reports and select the monthly sales report.
  2. Set the Comparison Periods:In the report settings, specify the periods you want to compare (e.g., January vs. February).You can use the Period or Date Range filters to select the months.
  3. Analyze the Data:Compare the sales figures for the selected periods.Look for trends, such as increased sales in February compared to January.
  4. Visual Representation:Use charts and graphs integrated into the report to visualize the sales trends.A bar chart comparing monthly sales figures can highlight the differences clearly.

Result: By comparing sales data from different months, you can identify trends, seasonality, and the impact of marketing campaigns or other initiatives.

Variance Analysis

Example: Budget vs. Actual Expenses

  1. Run the Report:Go to Reports > Saved Reports and select the budget vs. actual expenses report.
  2. Set the Date Range:Choose the relevant date range for the analysis (e.g., Q1 of the current year).
  3. Analyze the Variances:Compare the actual expenses against the budgeted figures.Look for significant variances where actual expenses exceed or fall short of the budget.
  4. Highlight Variances:Use conditional formatting to highlight variances that exceed a certain threshold (e.g., expenses over budget by more than 10%).
  5. Investigate Variances:Investigate the reasons behind significant variances. For example, higher than budgeted marketing expenses might be due to a new advertising campaign.

Result: Variance analysis helps you identify areas where actual performance deviates from the budget, allowing you to take corrective actions and manage costs effectively.

Key Performance Indicators (KPIs)

Example: Tracking Profit Margins

  1. Run the KPI Report:Go to Reports > Saved Reports and select a report focused on KPIs such as profit margins.
  2. Set the Date Range and Filters:Choose the relevant date range and any necessary filters to focus on specific products, departments, or time periods.
  3. Analyze the KPIs:Review the key metrics, such as Gross Profit Margin, Net Profit Margin, and Return on Investment (ROI).Compare these metrics against your business goals and industry benchmarks.
  4. Visual Representation:Use charts and graphs to visualize the KPIs. For example, a line graph showing Gross Profit Margin over the last 12 months.

Result: Tracking KPIs allows you to monitor the overall health of your business, measure performance against goals, and make data-driven decisions to improve profitability.

Practical Tips for Analysis

Comparative Analysis:

  • Tip: Regularly compare data from different periods (e.g., month-over-month, year-over-year) to spot trends and seasonal variations.
  • Example: A retail company notices that December sales are consistently higher than other months, indicating a holiday season peak.

Variance Analysis:

  • Tip: Focus on variances that significantly impact your business and investigate the underlying causes.
  • Example: A manufacturing company finds that production costs are higher than budgeted due to increased raw material prices.

Key Performance Indicators (KPIs):

  • Tip: Select KPIs that align with your business objectives and regularly track them to measure progress.
  • Example: A tech startup tracks Customer Acquisition Cost (CAC) and Lifetime Value (LTV) to ensure they are acquiring profitable customers.

Real-Life Scenario

Scenario: Finance Manager at an E-commerce Company As a finance manager at an e-commerce company, you run monthly sales comparison reports to identify trends and measure the success of marketing campaigns. You also conduct variance analysis to manage the budget effectively, investigating any significant deviations. Additionally, you track key performance indicators such as profit margins to ensure the company is on track to meet its financial goals. By using these analysis techniques, you provide valuable insights to the management team, helping them make informed decisions that drive business growth.

Practical Tip

Ever wonder why variance analysis is important? It’s like checking the weather forecast before a road trip. If you know a storm is coming, you can prepare accordingly. Similarly, identifying variances helps you address potential issues before they become major problems.

Congratulations, NetSuite Newbies! You’ve journeyed from the basics to advanced financial reporting in NetSuite, and now you’re equipped with the tools to make your reports truly shine. Let’s quickly recap what we’ve covered from Part 1 to Part 2:

Part 1:

  • Accessing and Running Pre-Built Reports: We started with the essentials, showing you how to access and run the pre-built reports in NetSuite. This foundation set the stage for more advanced techniques.
  • Understanding Report Types: We explored different types of financial reports available in NetSuite, helping you choose the right report for your needs.
  • Basic Customization: We dipped our toes into basic customization, learning how to tweak pre-built reports to better fit your specific requirements.

Part 2:

  • Advanced Customization: Like customizing your coffee order, we dove into adding formulas and calculations to your reports, integrating charts and graphs, and using conditional formatting to highlight key data points.
  • Scheduling and Automating Reports: We showed you how to set up scheduled reports and automate email delivery, ensuring that you and your stakeholders receive the latest data without lifting a finger.
  • Analyzing Reports: From comparative analysis to variance analysis and tracking key performance indicators (KPIs), we covered how to make sense of your data and extract valuable insights.

With these advanced techniques in your toolkit, you’re now ready to take full control of your financial reporting in NetSuite. Customize your reports to get the exact insights you need, automate them to save time, and analyze the data to make informed decisions that drive your business forward.

Remember, mastering NetSuite’s financial reporting isn’t just about crunching numbers; it’s about understanding your business on a deeper level and using that knowledge to achieve your goals. Keep exploring, keep customizing, and keep analyzing. Your journey to becoming a NetSuite reporting pro doesn’t end here—this is just the beginning.

Need help with anything NetSuite or accounting related? Whether you’re looking to optimize your financial reporting, streamline your operations, or just have some questions, we’re here to help! Reach out to Salora ERP for expert guidance and solutions tailored to your business needs. Let’s make your NetSuite experience seamless and powerful!

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