2 Aug, 2023

Simplify NetSuite Invoice Consolidation Using Invoice Groups

In the dynamic world of business, managing financial transactions efficiently is crucial for the success of any organization. NetSuite, a comprehensive cloud-based ERP (Enterprise Resource Planning) software, offers a wide range of features to simplify business operations. One such powerful feature is NetSuite Consolidated Invoice group, designed to optimize the invoicing process for NetSuite users. In this blog, we explore the concept of using NetSuite Consolidated Invoice groups, its benefits, and how it enhances the financial management experience for businesses. 

Understanding NetSuite Consolidated Invoicing 

NetSuite Consolidated Invoicing is a feature within the NetSuite ERP system that enables businesses to consolidate multiple invoices into a single invoice. It is particularly useful for organizations with complex billing structures, multiple subsidiaries, or those dealing with multiple customers. By consolidating invoices, businesses refine their invoicing processes, reduce administrative overhead, and enhance overall efficiency. 

How can NetSuite Users Consolidate their Invoices? 

NetSuite's Invoice grouping feature lets you combine multiple invoices for the same account into a single, consolidated invoice, saving time for accounts receivable staff and customers. Even the simplest bill takes time to prepare, and time is money. So, sending a separate invoice for every product or service a customer purchases is not only inefficient, but it's also costly. Not to mention, it's inconvenient and lengthy for your customer who has to review, process and pay each of those invoices individually. And since receiving several invoices at once from a single vendor is a red flag for many AP (Accounts Payable) departments, it may result in delayed payments, which can impact your cash flow. 

However, preparing a consolidated invoice manually can take just as long as sending multiple invoices. NetSuite's invoice grouping capability removes manual work. It uses specified criteria- like bill- to address, invoice due date or purchase order number- to automatically combine several invoices for a single customer. You can also standardize invoice grouping characteristics or customize them to meet the specific billing requirements for a given account. 

Purpose of Consolidated Invoicing 

Consolidated invoicing is the aggregation of all a customer's purchases received over a specified period into a single invoice. Creating multiple, individual invoices for a single customer is a time-consuming, repetitive, and manual task. And when a customer receives an onslaught of invoices from you, they are not only likely to become overwhelmed, but also more likely to lose track of those invoices and miss payments. 

With a business system that provides consolidated invoicing capabilities, you can set billing cycles and batch multiple invoices for that period into a single invoice that you only need to send once. Thus, consolidated invoicing simplifies and speeds up the billing process and makes your team more productive. 

It improves cash flow by reducing days sales outstanding, and it reduces time spent tracking down late payments. And your customers? They will be happier doing business with you! An efficient and organized invoicing process that only takes up a margin of their time not only ensures you get paid faster, but it also improves your overall customer experience.

Advantages of NetSuite Invoice Consolidation

Simplifies Invoicing: NetSuite Consolidation Invoicing simplifies the invoicing process for businesses by reducing the number of invoices they need to generate and manage.

Increased Efficiency: By consolidating data from multiple sources into a single invoice, organizations can improve their efficiency and reduce errors. 

Time Savings: NetSuite Consolidated Invoicing accelerates the creation and management of invoices, resulting in time savings for businesses. 

Enhanced Financial Insights: NetSuite Consolidated Invoicing offers businesses a broader perspective on their financial standing, empowering them to make more informed choices. 

Optimized Cash Flow: By streamlining invoice creation and management, NetSuite Consolidated Invoicing accelerates cash flow, enabling companies to receive payments promptly. 

How does NetSuite Consolidated Invoicing Work?

You can group invoices for your clients using the Invoice Groups functionality. By integrating numerous bills into one invoice group, you have more flexibility in satisfying your customers' expectations for how and when they receive invoices. 

Each client is allowed to have several invoice groups. After enabling the Invoice Groups Feature for a client, check the Group Invoices box on the customer record's financial subtab. Clear the For Invoice Grouping box if you don't want the invoice grouped for this customer on a sales order. If a sales order is related to an invoice that you want to group, the For Invoice Grouping box on the sales order must be checked. 

An invoice that is suitable for grouping does not need to be accompanied by a sales order. Invoices generated from subscriptions or projects, as well as invoices imported into NetSuite, are examples of when an invoice does not always have a sales order. 

NetSuite Invoice Grouping 

• There is a button available for each group of invoices, which allows us to flag them individually. If an invoice is applicable to an Invoice group, we can flag it, and there is a separate status for that.

• Once we have grouped invoices using the tick marks, a bulk page will be generated containing all the invoices belonging to that group. 

• In this way, when there are groups, we can view them separately and make modifications within the group as needed.

• Furthermore, we can print all invoices related to a specific invoice group and provide them to the client.

Closing Remarks 

NetSuite Consolidated Invoicing is a powerful tool for businesses using the NetSuite ERP system. It organizes the invoicing process, improves efficiency, enhances accuracy, and provides a better experience for both businesses and customers. In 2023, as organizations strive for greater operational excellence and cost optimization, NetSuite Consolidated Invoicing proves to be a valuable feature that simplifies financial management and supports informed decision-making. 

By utilizing the capabilities of NetSuite Consolidated Invoicing, companies can experience time savings, decreased administrative burdens, and improved control over their financial processes. As technology progresses, NetSuite remains dedicated to innovation, ensuring that users can access robust functionalities such as consolidated invoicing to thrive in an ever-evolving business environment. 

If you have any inquiries or need support with NetSuite Consolidated Invoicing, do not hesitate to reach out to our knowledgeable team at Jobin & Jismi. Our experts are ready to assist you in optimizing your financial operations and achieving maximum efficiency.