NetSuite Customization: Unlocking the Full Potential of Your ERP

NetSuite Customization: Unlocking the Full Potential of Your ERP

Introduction

NetSuite is a comprehensive, cloud-based ERP system that provides a robust suite of tools to manage all facets of a business, including accounting, financials, inventory management, ecommerce, CRM, and more. Out of the box, NetSuite delivers powerful functionality that can streamline operations for a wide range of organizations. 

However, the true value of NetSuite lies in its extensive customization capabilities. By tailoring and optimizing the NetSuite environment to fit an organization’s unique business processes, challenges, and objectives, companies can derive even greater benefit from the platform. Effective customization is key to maximizing return on investment and molding NetSuite into the ideal solution for a particular business.

This article will explore the many customization options available within NetSuite, provide real-world examples of successful customizations, and offer actionable advice for optimizing NetSuite to its fullest potential. Whether your organization is a small business just getting started with NetSuite or a large enterprise looking to take its ERP to the next level, the insights in this post will help guide your customization journey.

 The Business Case for NetSuite Customization 

Every organization is unique, with its own distinct processes, data requirements, and key performance indicators. While the native functionality in NetSuite provides a solid foundation, there will inevitably be gaps between what the core system offers and what a specific business needs to operate at peak efficiency. 

Customizing NetSuite allows organizations to close these gaps and tailor the system to their precise specifications. Some of the key benefits and objectives driving NetSuite customization include:

– Streamlining and automating unique workflows to eliminate manual processes and workarounds

– Capturing and managing business data more effectively to enable smarter decision-making 

– Gaining richer insights through custom reports, dashboards, and data visualizations

– Integrating with third-party systems and data sources to break down information silos

– Improving the NetSuite user experience to drive adoption and productivity

– Adhering to industry-specific best practices and compliance requirements

– Scaling NetSuite to support business growth and evolution over time

With the appropriate customizations in place, NetSuite transforms from a generic ERP into a purpose-built solution that fits the organization like a glove. Customizing NetSuite empowers companies to operate with greater efficiency, make better data-driven decisions, and ultimately increase profitability and competitive advantage.

NetSuite Customization Options and Techniques

NetSuite offers a wide range of customization options and a robust development platform, allowing organizations to tailor virtually every aspect of the system to their needs. The following sections will explore some of the key areas and techniques for customizing NetSuite.

Custom Fields and Forms

One of the most impactful ways to customize NetSuite is by adding custom fields to standard records and transactions. Custom fields enable organizations to capture additional data points that are critical to their operations but aren’t included in NetSuite by default.

For example, a wholesale distribution company might add custom fields to track lot numbers and expiration dates on inventory items. A professional services firm could create custom fields to capture project details on customer orders and invoices. The use cases for custom fields are virtually limitless.

In addition to custom fields, NetSuite also enables the customization of data entry forms and screens. Using the point-and-click Form Customization tool, administrators can rearrange fields, incorporate custom fields and subtabs, and tailor the overall layout and design. Optimizing NetSuite forms streamlines data entry, ensures that critical information is prominently displayed, and improves the overall user experience.

Workflows and Approval Routing

Workflows are another powerful tool for customizing NetSuite to align with an organization’s business processes. NetSuite workflows allow companies to automate multi-step processes, route records for review and approval, apply conditional if/then logic, and more. By implementing custom workflows that mirror their operational flows, organizations can significantly boost efficiency, minimize manual effort, and enforce control and compliance.

Common applications for custom workflows include:

– Routing sales orders for approval based on discount level or profit margin

– Automatically reordering inventory items when stock falls below predefined thresholds

– Escalating customer support cases if they are not resolved within a specified timeframe 

– Triggering customer invoices to be generated and delivered upon order fulfillment 

– Calculating sales commissions using custom criteria and rules

To build workflows, NetSuite provides two key tools. The point-and-click SuiteFlow tool allows non-technical users to define workflow steps, conditions, and actions without coding. For more complex workflows, the SuiteScript API can be used to develop highly customized workflow logic using JavaScript.

Custom Records and Transactions 

In situations where an organization needs to track data or processes that don’t map to standard records in NetSuite, custom record and transaction types can be created. Custom records are entirely new data structures that an organization designs and implements from the ground up, complete with custom fields, forms, and relationships.

Custom transactions are similar in concept to custom records, but they represent specific business events or financial transactions rather than just data tables. Custom transactions can have their own tailored data entry forms, approval flows, and general ledger impacts.

Use cases for custom records and transactions span a wide range of industries and requirements. Some examples include:

– Creating a custom “Project” record to manage project details, tasks, budgets, and profitability  

– Building a custom “Asset” record to track fixed assets and calculate depreciation over time

– Developing a custom “Rental Agreement” transaction to handle complex equipment rental processes

– Implementing a custom “Timesheet” record to streamline employee time tracking and approvals

– Designing custom “Quality Control” transactions to manage inspections, defects, and corrective actions

By leveraging custom record and transaction types, organizations can extend NetSuite to handle their most specialized data and process needs, no matter how unique or industry-specific.

Scripting and Custom Development

To achieve the utmost flexibility and control in NetSuite customization, a full-fledged development framework called SuiteCloud is available. Using SuiteCloud and the SuiteScript JavaScript API, developers can write custom programs and applications to extend NetSuite’s native capabilities in virtually any way imaginable.

Common use cases for scripted customizations and custom development include:

– Displaying custom alerts, field validations, and dynamic form behaviors to guide data entry

– Defining custom search filters, formulas, and analytics to mine NetSuite data in new ways

– Automating complex, multi-step processes spanning multiple records and related systems  

– Generating custom-branded documents such as invoices, statements, and pick tickets

– Synchronizing NetSuite data with other enterprise platforms and databases in real time

– Creating bespoke data visualizations, dashboards, and KPI scorecards for specialized reporting    

– Building new custom modules and end-to-end applications to run atop the NetSuite platform

With the SuiteCloud development framework, the customization possibilities are endless. An experienced NetSuite development partner can help define, architect, and implement custom solutions to enable any business requirement or process.

Customizing Reports and Dashboards

NetSuite ships with a powerful toolset for real-time reporting and data visualization, allowing organizations to monitor business performance, identify issues and opportunities, and make data-driven decisions. Customizing NetSuite’s reporting capabilities is critical for surfacing an organization’s most important metrics and KPIs.

The SuiteAnalytics Workbook tool makes it simple for non-technical users to create custom dashboards and data visualizations through a drag-and-drop, point-and-click interface. Key customization options include defining data sets, building data filters, arranging charts and graphs, setting alerts and thresholds, and sharing insights with specific audiences. With SuiteAnalytics Workbook, it is easy to create role-specific, actionable dashboards that align with a team’s most critical objectives and questions.

For pixel-perfect, printable business reports, NetSuite provides a range of tools and options. The Financial Report Builder allows accounting teams to generate custom financial statements using their desired rows, columns, and formatting. The Report Builder tool can be used to create bespoke transactional reports related to sales, projects, inventory, customer support, and other areas. Out of the box, NetSuite includes hundreds of standard reports that can also be copied and customized to an organization’s specific needs. 

SuiteAnalytics Connect enables organizations to define custom data sets that join information from NetSuite and external sources. These data sets can then be explored using the charting, pivoting, and drill-down capabilities of SuiteAnalytics Workbook or exported to third-party business intelligence tools for further analysis.

Industry-Specific Customization

While NetSuite is well-suited for a broad cross-section of industries out of the box, certain sectors have highly specialized requirements that necessitate focused customization. NetSuite can be tailored to align closely with the unique needs of a particular industry, with purpose-built dashboards, workflows, data structures, and compliance features.

A few examples of key industry customizations include:

– Wholesale Distribution: Automating multi-step pick/pack/ship processes and calculating landed costs

– Manufacturing: Defining complex assemblies and routings and optimizing production scheduling

– Software and Technology: Syncing usage and billing data and streamlining the renewals process

– Professional Services: Tracking project tasks, budgets, timelines, and resource utilization  

– Nonprofit: Tailoring the chart of accounts and reporting for fund and grant accounting  

– Healthcare: Developing HIPAA-compliant processes and audit trails for patient information 

– Retail and Ecommerce: Integrating item, inventory, and order data with online storefronts

– Advertising and Digital Media: Building workflows to manage insertion orders and ad campaigns

An experienced implementation partner will have the industry expertise and NetSuite knowledge needed to align the platform with an organization’s specific vertical, enabling streamlined processes, KPI tracking, and regulatory compliance.

Real-World NetSuite Customization Examples

To demonstrate the transformative potential of NetSuite customization, let’s explore several real-world examples of how organizations have tailored NetSuite to achieve their goals.

Streamlining Procure-to-Pay with Custom Workflows 

ABC Manufacturing’s procure-to-pay processes spanned multiple departments and systems, with inconsistent data and frequent manual handoffs. The company was struggling to maintain control and efficiency across its purchasing activities. 

To streamline P2P in NetSuite, ABC worked with an implementation partner to:

– Create a custom Purchase Requisition record to capture key data for approval

– Define a multi-step approval routing workflow based on requisition amount and department

– Implement a Purchase Order approval workflow with automated notifications and escalations  

– Develop custom reports and searches to track P2P metrics like cycle time and spend vs. budget

Thanks to these customizations, ABC was able to automate its P2P processes from end to end within NetSuite. Requesters and approvers now have full visibility into the status of purchase requests. Automatic alerts and escalations keep the process moving forward. Bottlenecks can be identified using the custom reports. Overall, the company reduced manual effort by 45% and can now analyze purchasing data in real time to optimize spending.

Integrating NetSuite and 3PL Systems 

XYZ Wholesale’s fulfillment processes were bogged down by swivel chair data entry and limited integration between NetSuite and the company’s third-party logistics provider. Orders, shipments, and inventory data had to be manually reconciled between the two systems on a daily basis, introducing errors and delays.

XYZ engaged a NetSuite partner to build a custom integration that would:

– Automatically sync sales order, item fulfillment, and item receipt data via the 3PL’s API

– Incorporate custom item attributes and lot numbering into the synchronization

– Generate and transmit ASNs, pack slips, and GS1 labels based on predefined rules 

– Develop exception reports to identify and resolve any synchronization issues in real time

After deploying the custom integration, manual data entry between NetSuite and the 3PL decreased by 90%. The warehouse team saved hours per day that had been spent aligning records. Real-time visibility into 3PL transactions improved inventory accuracy and accelerated order processing. Customer service also had better information to proactively communicate with buyers about order statuses and changes.

Custom Development for Revenue Recognition Compliance

DEF Software needed to overhaul its financial reporting and revenue recognition processes to comply with the new ASC 606 and IFRS 15 standards. The company’s existing revenue workflows, schedules, and reports in NetSuite would all need to be updated to align with the revised guidelines. 

DEF collaborated with a NetSuite customization firm to:

– Design custom revenue arrangement and revenue plan records to capture 606-relevant fields

– Develop custom fair value pricing templates to automate standalone selling price calculations

– Script new revenue recognition and reallocation schedules to comply with 606 rules 

– Build updated revenue reports and dashboards to analyze 606 impacts and disclosures 

The lead time required to implement these customizations was significantly less than migrating to a new ERP would have taken. DEF was able to achieve compliance by the 606 deadlines while continuing to run its core financial processes in NetSuite. The company is now able to handle even its most complex multi-element arrangements and revenue waterfalls in accordance with the revised standards.

Ensuring NetSuite Customization Success

As these client stories illustrate, customizing NetSuite strategically can deliver transformative business benefits, enabling organizations to operate with greater efficiency, transparency, and control. However, it takes careful planning and the right implementation approach to optimize NetSuite effectively and avoid common customization pitfalls. 

Here are several recommendations to set your NetSuite customization initiative up for success:

1. Assess your current state processes and systems thoroughly before starting to customize. Interview stakeholders to understand where existing constraints and pain points exist. Map out your business processes and identify specific gaps and opportunities to enhance them in NetSuite.

2. Establish clear requirements and priorities for your customizations. Determine which custom elements are truly essential and which are just nice-to-haves. Validate customization ideas with end users before investing time in development.

3. Be judicious in the number and complexity of customizations you undertake. An over-customized NetSuite environment can become challenging to maintain and upgrade over time. Always consider if a need can be met with standard functionality before pursuing customization.

4. Follow NetSuite development best practices to ensure your customizations are scalable, maintainable, and upgradeable. Leverage NetSuite’s recommended customization frameworks and APIs wherever possible. Avoid client-side scripting and leverage modular coding patterns.

5. Partner with an experienced NetSuite solution provider to guide your customization journey. The right partner will have a deep understanding of NetSuite’s customization toolset as well as leading practices for your industry. They can help you make informed design decisions and avoid issues down the road.

6. Phase your customizations to deliver value quickly while controlling scope and complexity. Identify the highest-value customizations and tackle those first, rather than trying to solve for everything right out of the gate. Establish a cadence of iterative enhancements over time.

7. Invest in training and change management to drive adoption of your customized solution. Make sure that end users understand the new custom fields, workflows, and capabilities you are rolling out. Continuously gather their feedback to identify opportunities for refinement.

8. Monitor your custom environment and plan for ongoing enhancements. As your business needs evolve, adjust your customizations accordingly to maintain alignment. Stay current on new NetSuite features that could be leveraged to replace or complement existing customizations.   

Conclusion

Customizing NetSuite is a powerful strategy for aligning the platform with your organization’s unique operational needs and business objectives. From custom fields and workflows to purpose-built records and scripts, NetSuite offers a broad range of tools and techniques for tailoring the system to tackle your most pressing challenges and opportunities.  

Whether you are looking to streamline a complex process, drive new insights through custom data and reports, or extend NetSuite to enable a specialized industry requirement, building the right customizations can help you maximize the value of your ERP investment. A thoughtful approach that leverages leading practices and expert guidance is critical for long-term customization success.

Has your organization customized NetSuite to power more efficient processes, deeper analytics, or enhanced user productivity? What advice would you offer to others considering or starting their NetSuite customization journey?

If you are looking for an experienced partner to support your NetSuite customization initiatives, our team would be happy to share real-world examples and leading practices aligned with your unique requirements and objectives. Contact us today to discuss how we can help you build a NetSuite environment that will drive your business forward.