User Guide

Once Localization Germany is set up by the administrator, users can work directly with all functions that are relevant in day-to-day accounting — no technical setup required.

The product extends NetSuite with features that make German accounting and tax compliance easier, safer, and more automated.

Here’s what users typically do in their daily work:

Send invoices including XRechnung
Create standard invoices and generate legally compliant XRechnung XML files with one click.
Clear messages show if mandatory fields like the Leitweg-ID are missing — so invoices can be corrected and re-sent without delay.
Validate VAT IDs for customers and vendors
Check EU VAT numbers directly on customer or vendor records.
The system verifies both syntax and company data via the official VIES interface, ensuring compliant and fraud-safe transactions.
Handle early-payment discounts correctly (VAT Clawback)
When discounts (Skonto) are applied, the system automatically generates the required VAT adjustment journal entry — fully compliant with §17 UStG.
No manual calculations, no risk of overstated VAT claims.
Use the Account Details (Kontenblatt)
Access detailed account views for customers, vendors, or transactions — including debit/credit movements and running balances.
Data can be filtered, printed, or exported to PDF or CSV for reporting or audits.
Generate Bill Accruals for unapproved bills
Create journal entries for open vendor bills from previous periods to ensure expenses are booked in the correct reporting period.
Run financial reports according to HGB
Use predefined layouts for SKR03, SKR04, or generic charts of accounts, ensuring German-compliant income statements and balance sheets without manual remapping.

Note: The functions available to a user depend on which components have been activated by the administrator.

2. What’s important for users?

Localization Germany adds structure and automation to your daily finance work — with a clear focus on compliance, transparency, and ease of use.
Each component works directly where users need it: in invoices, transactions, and reports.

Clear visibility in daily workflows

Every function appears as a visible action or button within familiar NetSuite records — for example: Create XRechnung on invoices or Account Details on customer and vendor records. No need to leave your usual workspace or open separate tools.

Compliance out of the box

All features follow German accounting and tax rules automatically:

XRechnung for public-sector invoicing
HGB-based reporting layouts (SKR03 / SKR04)
VAT handling aligned with §17 UStG and EU VAT regulations
This ensures that transactions, tax calculations, and reports always meet legal standards — without extra effort from the user.

Understand and fix errors easily

If something goes wrong, the system provides clear and actionable messages.
For example, missing fields like the Leitweg-ID are flagged immediately, and all technical errors are listed transparently in the Integration Log.
This makes it easier to solve small issues on your own — without waiting for admin support.

Locked Posting for secure financial data

Once transactions are posted, they become immutable — ensuring audit-proof accounting.
Users always see the current state of booked data and can trace every change through new entries, not edits.

Modular design — you only see what’s relevant

Each component of Localization Germany can be activated or deactivated individually.
That means you’ll only see the functions your company uses — keeping the interface clean and focused on your daily work.

→ Tip: Use the buttons and messages in your transaction records as guidance. If a function is missing, it’s likely not activated yet — just ask your administrator.

3. Using Localization Germany

XRechnung (Outgoing Invoices)

What it does

Creates and manages XRechnungen — electronic invoices in Germany’s official XML format (UBL 3.x).
Public authorities and many B2B partners now require this format for compliance and automated processing.
The feature converts your NetSuite invoice data into a legally compliant XML file and attaches it directly to the record — ready for submission or email delivery.

How it works

Open the invoice you want to send electronically and click Create XRechnung.

If all required data is in place, the system creates the XML and attaches it automatically under Communication > Files.

You can then download it or — if email sending is set up — send it straight from NetSuite using your predefined sender and email template.

Troubleshooting

If the process stops with a warning, follow the link to the Integration Log. There you’ll see exactly what’s missing—usually the Leitweg-ID, VAT ID, or payment terms. Add the missing data on the customer or invoice, then run Create XRechnung again. If a field isn’t visible, ask your administrator to enable it.

→ Tip: The XML file stays linked under Communication > Files — ideal for audits or for manual upload to public portals.

VAT ID Check (EU VAT Number Validation)

What it does

Verifies the validity of European VAT IDs for customers and vendors by connecting to the official VIES system.

How it works

Open the customer or vendor record and click Validate VAT ID.
The system sends your own valid VAT ID together with the number to be checked to the VIES database.
The response shows whether the VAT ID is valid and, if applicable, displays company name and address details.

If the validation returns invalid, review the VAT ID and company data on the record.
In some cases, temporary issues with the national VAT service can also cause an invalid status — try again later.

→ Tip: Keeping VAT IDs validated ensures compliance with EU VAT rules and helps prevent input-tax corrections or audit issues.

VAT Clawback (Early Payment Discount Adjustment)

What it does

The VAT Clawback feature automatically handles VAT corrections when an early payment discount (Skonto or Cash Discount) is taken.

In German accounting, VAT is initially calculated on the full invoice amount. Only at the time of payment does it become clear whether a discount applies. When a discount is taken, the taxable base changes and VAT must be adjusted accordingly.

Doing this manually requires additional journal entries and careful VAT calculations. VAT Clawback automates this process and applies the correction correctly at payment time.

Why This Matters for Users

With VAT Clawback, you get:

No manual VAT correction journals
Automatic use of the correct VAT code
Accurate VAT amounts in the VAT advance return
Full compliance with German tax law (§17 UStG)

Compared to standard NetSuite behavior — where all corrections must be posted manually — this significantly reduces workload and risk.

How it works

Open the Customer Payment or Vendor Payment record.
Enter the actual discount in the Discount Taken field.
Save the payment.

That’s it.

The system automatically creates a VAT Clawback journal and links it directly to the payment.:

Booking Example (Customer Payment with Skonto)

Initial Invoice

Net amount: 1,000.00 EUR
VAT (19 %): 190.00 EUR
Gross amount: 1,190.00 EUR

Payment with 2 % Skonto

Discount: 20.00 EUR
Adjusted net amount: 980.00 EUR
Adjusted VAT (19 %): 186.20 EUR

Resulting VAT Clawback Journal

The system automatically creates a journal entry that:

Posts the discount amount
Reduces revenue accordingly
Corrects VAT by the difference (3.80 EUR)
Uses the VAT code from the original invoice

The journal consists of separate lines for:

Discount-related postings (non-tax relevant)
VAT correction postings (tax relevant)

This ensures that both the accounting result and VAT reporting are correct.

Transparency & Traceability

Each VAT Clawback journal:

Is clearly linked to its payment
Uses the VAT code from the original transaction
Is included correctly in VAT reporting and the VAT advance return

This ensures audit-safe documentation without additional effort.

Note: Skonto (also referred to as Early Payment Discount or Cash Discount) is a conditional discount (e.g., “2 % if paid within 10 days”). Because the applicability is only known at payment time, VAT is adjusted automatically when the payment is recorded.

Account Details (Kontenblatt)

What it does

Displays detailed account movements for customers, vendors, employees, or general ledger accounts — similar to an account statement.
A typical German Kontenblatt shows:

Opening balance
Debit and credit movements
The corresponding contra account
A running balance
Closing balance

German accountants use this structured view for reconciliation, audit preparation, and booking analysis.

Compared to the NetSuite standard view (GL Impact), Account Details presents debit and credit together with the contra account in a format that reflects German bookkeeping logic. This makes it easier to understand which posting was made against which account.

Example: How a Booking Appears

Assume an invoice for 1,000 EUR is posted:

Debit: Receivables 1,000 EUR
Credit: Revenue 1,000 EUR

In the NetSuite GL Impact, debit and credit appear as separate lines.

In Account Details (Kontenblatt), the posting is displayed together with its contra account. This makes it immediately visible which account was posted against which and helps users review and understand the booking logic more efficiently.

Viewing Account Details

You can access Account Details from different entry points:

From a Customer/Vendor/Employee record

Click Account Details.

This view shows all movements on the receivables or payables account of that entity — including invoices, payments, and adjustments — with a running balance.

From a transaction record

Click GL Lines with Contra Account.

This view shows the accounting impact of the selected transaction. Unlike the NetSuite GL Impact, which displays debit and credit as separate lines, this view links postings with their contra account, making the booking logic easier to read.

From the main menu

Go to Reports > Financial > Account Details Entry.

This allows you to review all movements of a selected general ledger account for a specific period. Each view shows the relevant accounts, subsidiaries, and currencies automatically.

Each view shows the relevant accounts, subsidiaries, and currencies automatically.

Filter and Navigation

Use filters to narrow down results:

Date range (default: current month)
Entities (specific customers, vendors, employees)
Transaction type (e.g. invoices, payments)
Configuration (selects which columns are displayed, such as Location or Department)

Depending on the selected configuration, different columns such as tax, foreign currency, or classifications may be displayed. This ensures that each account view shows only relevant information.

→ Tip: The default view hides classifications like Location or Department. To see these columns, select a custom configuration in the Configuration filter.

Balances and Totals

Each report includes:

Opening Balance – total before the “From” date
Closing Balance – total as of the “To” date
Debit / Credit totals – based on transactions in view

Export and Print Options

Export a single page: Export Page to PDF / CSV
Export the entire report – either opens directly or is sent by email (depending on system threshold)

Summary:

The Account Details feature provides a structured, German-style view of account movements.

It allows users to:

Understand booking logic through contra accounts
Review transaction impact in a clear format
Reconcile balances efficiently
Export reports for audit or documentation purposes

Account Details makes accounting movements transparent and easier to analyze than the standard NetSuite view.

Bill Accruals (Accruals for Unapproved Vendor Bills)

What it does

Creates accrual journal entries for vendor bills that are not yet approved — ensuring expenses are recognized in the correct reporting period.
This helps maintain accurate month-end financials, even when invoices are still pending approval.

How it works

Go to Transactions > Payables > Bill Accrual.
Select the Subsidiary.
The system lists all unapproved bills from the previous period.
Mark the bills to be accrued.
Choose the Accrual Account to be used.
Click Start to generate the journals.

Depending on configuration, the system creates

one Journal Entry per bill, or
a summarized entry for all selected bills using the same account.

Summary:

Bill Accruals ensures clean period-end reporting without waiting for bill approvals — improving accuracy and closing speed.

HGB Reporting (SKR03 / SKR04 / Generic)

What it does

Generates HGB-compliant financial statements based on your NetSuite data, using German-standard account structures (SKR03 or SKR04).

Layouts can be customized or copied, ensuring alignment with statutory reporting formats and internal accounting preferences (e.g. Umsatzkostenverfahren or Gesamtkostenverfahren).

How to use

Go to Reports > Financial > Income Statement or Balance Sheet.

Select or duplicate the desired layout (SKR03, SKR04, or Generic).

Review the structure and ensure the profit/loss aligns between the Income Statement and the Balance Sheet.

Summary:

These preconfigured layouts simplify statutory closing and reporting under German HGB standards — ready for audit or export without manual mapping.

EU Generic Tax (inkl. OSS)

What it does

Ensures correct tax codes and calculations for cross-border EU transactions — including ship-from/ship-to logic, OSS rates, and automatic rounding adjustments.
It replaces NetSuite’s default tax logic with a more precise setup tailored to EU and German accounting rules.

In day-to-day use

When creating transactions, tax codes are applied automatically based on the shipping countries.
For imported data (e.g. webshop orders), rounding differences are automatically corrected.
OSS-specific rates and B2B/B2C logic are handled in the background — no manual setup needed.

→ Tip: If tax amounts or codes look unusual, check the transaction’s shipping details and subsidiary configuration. These define which rule set (EU / OSS) is applied.

Tax Point Date

What it does

Defines the tax-effective date of a transaction — i.e. the date used for VAT reporting under German and EU law.
This can differ from the invoice or service date (for example, in prepaid or subscription scenarios).

How it helps

Tax Point Date ensures transactions are booked in the correct VAT period, even when the performance date and payment date don’t match.
This avoids mismatches between your accounting books and VAT filings.

How to use

Open the relevant transaction (e.g. Invoice, Credit Memo).
Review the Tax Point Date field.
Adjust it if the tax liability should fall in a different period (for example, future delivery or deferred service).

Summary:

Keeps VAT reporting accurate and compliant by separating the tax-effective date from the posting or invoice date — especially useful for cross-period or advance transactions.

Locked Posting (Immutability of Bookings)

What it does

Prevents any modifications to transactions once they are posted.
This ensures data integrity and compliance with German accounting standards, where already booked records must remain unchanged.

When Locked Posting is active, users can no longer edit or delete posted transactions — only reversal entries are allowed.
This protects against accidental changes and keeps your audit trail consistent.

Note: Locked Posting is automatically applied once activated by your administrator.
In day-to-day work, you’ll simply notice that booked transactions can no longer be edited — a key safeguard for audit reliability.

PDF Texts (Steuer- und Formularhinweise)

What it does

Automatically adds legally required or informational text blocks to invoices and credit memos, depending on the applied tax code and language.

This ensures that all VAT-related notes are consistent and compliant — without manual editing of forms.

Where to see it

On the invoice or credit memo printout
In the PDF preview within NetSuite

Summary:

Keeps invoice texts legally correct and multilingual — automatically applied per tax code and form type.

ELSTER Submission

What it does

Enables the electronic submission of German VAT returns (Umsatzsteuer-Voranmeldung) directly from NetSuite via the official ELSTER interface.
All steps — from report upload to transmission and feedback — happen within one dashboard, ensuring a compliant and paperless VAT process.

How it works

Go to Setup > Custom > AV ELSTER VAT Report.
In the ELSTER Dashboard, upload the generated VAT report file (.xml) from your NetSuite VAT report.
Choose the submission type: First submission (Erstübermittlung) or Correction (Berichtigung).
Click Submit to ELSTER to transmit the file.
Once sent, ELSTER automatically provides confirmation and feedback reports (success, error, or transmission logs).
All reports are stored in the configured incoming folder in the File Cabinet.

Summary:

Localization Germany integrates key German accounting and tax features directly into NetSuite — from XRechnung and VAT validation to HGB reporting and OSS logic. All core processes run automatically within your daily NetSuite workflow, reducing manual effort and ensuring compliance.

Integration Logs, clear error messages, and automated postings help users understand and fix issues directly, without technical steps. If a field or function is missing, it’s likely not activated for your subsidiary — just contact your administrator.

Together, these features make financial operations easier, safer, and fully compliant with German standards.

Customer Down Payment Process

What it does

The Customer Down Payment Process allows you to request, receive, and apply customer prepayments directly within your standard sales workflow.

It ensures that:

Down payments are handled correctly in accounting
VAT is calculated and adjusted automatically
Final invoices automatically consider received prepayments

This avoids manual journal entries and ensures compliant financial reporting.

Why it matters

In German accounting, down payments:

Must not be treated as revenue
Require specific VAT handling
Must be cleared correctly once the final invoice is issued

Without automation, this process requires manual adjustments and increases the risk of errors.

The system handles this automatically — reducing effort and ensuring compliance.

How it works

Step 1: Create Sales Order

Go to Transactions > Sales > Enter Sales Orders

Create a Sales Order as usual
Define the down payment:
- Fixed amount
- Percentage of the order value

The system calculates the down payment and VAT automatically based on the net value.

Step 2: Generate Down Payment Invoice

On the Sales Order, click Down Payment Invoice Generation

The system:

Creates a standard invoice
Assigns an invoice number
Prepares it for sending to the customer

→ Tip: This invoice represents a payment request, not revenue.

Step 3: Record Customer Deposit

Go to: Transactions > Customers > Accept Customer Deposits

Enter:

Customer
Related Sales Order
Bank account
Amount received

Save the record.

The system automatically posts the payment and handles VAT allocation.

Step 4: Fulfill the Order

Process the Sales Order as usual:

Approve (if required)
Fulfill items or deliver services

Step 5: Create Final Invoice

Create the invoice from the Sales Order.

The system automatically:

Applies the down payment
Reduces the open amount

Example:

Order total: 10,000 EUR
Down payment: 3,000 EUR
Remaining invoice: 7,000 EUR

Step 6: Record Final Payment

Go to: Transactions > Customers > Accept Customer Payments

Apply the payment to the final invoice
Enter payment details
Save

What happens in the background

The system automatically:

Posts down payments without recognizing revenue
Adjusts VAT correctly
Applies deposits to the final invoice
Creates all required clearing entries

No manual journal entries are required.

Roles in the process

Role Responsibility

- Sales/ Operations Create Sales Order and generate down payment invoice

- Accounting Record deposits and final payments

- System Handles accounting logic and VAT adjustments automatically

The Customer Down Payment Process integrates prepayments into your standard sales and accounting workflow.

It allows users to:

Request and track down payments
Record incoming payments correctly
Automatically apply prepayments to final invoices

Bottom line: Down payments are handled automatically, VAT-compliant, and without manual accounting effort — ensuring accurate and audit-safe financial data.

Summary:

Together, these features make financial operations easier, safer, and fully compliant with German standards.

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