Managing financial transactions is essential for businesses, especially when using multiple platforms to handle payments. If you’re using NetSuite for your accounting and PencilPay for managing payments, reconciling these with your bank account is crucial to ensure that all transactions are properly recorded, matched, and cleared.

This article provides a detailed step-by-step guide on how to reconcile NetSuite, your bank account, and PencilPay, streamlining your payment and accounting workflows.

Why Reconciliation Matters

Reconciling your accounts ensures that every payment processed through PencilPay matches with your NetSuite accounting system and your bank statement. This reduces errors, simplifies financial reporting, and ensures that all transactions are properly accounted for, which is essential for maintaining accurate financial records.

Step-by-Step Guide to Reconciliation in NetSuite

Step 1: Check Your Bank Account Configuration in NetSuite

The first step is ensuring that your bank account is properly configured for reconciliation in NetSuite. This ensures that all funds disbursed by PencilPay into your bank account can be matched and reconciled.

1. Navigate to the Chart of Accounts:
   • In NetSuite, go to your Chart of Accounts.
   • Locate the bank account that PencilPay disburses funds into and click Edit.
2. Enable Reconciliation for the Bank Account:
   • In the middle column, ensure that the option Use Match Bank Data and Reconcile Account Statement Pages is checked.
   • Click Save.

Note: If this option is not available, reach out to support@pencilpay.com for assistance.

Step 2: Import Your Bank Feed

Next, you’ll need to import your bank statement into NetSuite. If you have automated bank feeds set up, you can skip this step and move to Step 3.

1. Upload Your Bank Feed:
   • In NetSuite, you can either:
     • Search for Upload File in the search bar, or
     • Navigate to Transactions > Bank > Banking Import History > Upload File.
2. Select Your Bank Feed File:
   • Choose the appropriate file from your computer.
3. Note: If you don’t have a template, you can download the CSV template from the right side of the upload page.
4. Import the File:
   • Under Import Options, select Import with a default parser (CSV, OFX, QFX, BAI2, or CAMT.053).
   • Click Import and wait for the process to complete.

Step 3: Match Bank Data with PencilPay Disbursements

Once the bank feed is uploaded, you’ll need to match the disbursements from PencilPay with transactions in NetSuite.

1. Navigate to Bank Data Matching:
   • In NetSuite, go to Transactions > Bank > Match Bank Data.
   • Select the bank account where PencilPay disbursements are deposited.
2. Review Transactions:
   • Click on the Review tab.
   • Look for the “Matched” transaction from PencilPay.
3. Submit to Confirm:
   • After reviewing the matched transaction, click Submit in the top left corner of the screen to confirm that the data is correctly matched.
4. NetSuite will now clear the transactions and mark them as reconciled.

Step 4: Review Invoices Included in the Disbursement

To ensure accuracy, it’s important to review the specific invoices included in the PencilPay disbursement.

1. Locate the Deposit:
   • Navigate to the Deposits section in NetSuite.
   • Find the deposit by the Memo, which will display the invoice numbers associated with the disbursement.
2. View Invoice Details:
   • Click View to open the deposit details.
   • In the Memo column, you’ll see all the invoices that were included in the disbursement from PencilPay.

Step 5: Check the Pencil Clearing Account

Lastly, you should review the Pencil Clearing Account to ensure that all funds related to PencilPay payments are correctly tracked.

1. Access the Pencil Clearing Account:
   • In the deposits section, click on the Pencil Clearing Account.
2. Review Transactions:
   • The clearing account will show all the funds flowing in and out related to payments made through PencilPay.
   • Ensure that the balance in the clearing account matches the corresponding transactions in NetSuite.

Benefits of Automating Reconciliation with PencilPay and NetSuite

Automating your reconciliation process using PencilPay and NetSuite provides numerous benefits:

• Time Savings: Manual reconciliation can be labor-intensive and error-prone. Automating the process ensures accuracy and saves valuable time for your finance team.
• Improved Accuracy: With automated matching and reconciliation, you reduce the risk of human error in accounting and transaction tracking.
• Real-Time Financial Insights: By automatically syncing PencilPay payments with NetSuite, you can maintain up-to-date financial records, allowing you to better manage cash flow and operational efficiency.
• Streamlined Operations: Automation helps streamline payment processes, improve cash flow, and reduce administrative overhead.

Conclusion

Reconciling your accounts is an essential task for any business using multiple platforms for financial transactions. By following these simple steps, you can ensure that your bank, NetSuite account, and PencilPay are fully aligned, giving you a clear and accurate picture of your financial situation.

With PencilPay’s automated features and NetSuite’s robust reconciliation capabilities, your business can efficiently manage its payments, saving time and improving cash flow.