NetSuite NetSuite ERP Consultant Practice Test Questions, Exam Dumps

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NetSuite ERP Consultant NetSuite Practice Test Questions and Exam Dumps

Question 1
A company purchased and received 100 chairs for a conference room. Four of the chairs were the wrong style and must be returned. What steps are performed after approving the Vendor Return Authorization?

A. Shipping the Return > Close Return
B. Shipping the Return > Crediting the Return
C. Shipping the Return > Create a Journal Entry
D. Shipping the Return > Mark Shipped on the Return Authorization

Correct Answer: B

Explanation:
When a company receives goods from a vendor but identifies some as incorrect or defective, the appropriate process to initiate a return is to create a Vendor Return Authorization (VRA). This document is used to authorize the return of goods to the vendor and initiates the transaction flow in the system.

After the Vendor Return Authorization is approved, the company follows a standardized return process. The first step is to ship the returned goods back to the vendor, either through a shipping system or manual logistics tracking. This shipping activity needs to be recorded in the system to ensure inventory and logistics accuracy.

Once the vendor receives the returned goods, they typically issue a vendor credit memo. This credit reduces the amount the company owes or provides a refund if payment has already been made. This second step is known as crediting the return, and it must be processed in the system to properly reflect the financial impact of the return in the general ledger and accounts payable.

Let’s evaluate the options:

A. Shipping the Return > Close Return: This is incomplete. The return is not considered finalized until a credit memo has been issued and recorded. Simply closing the return after shipping doesn't complete the accounting side of the transaction.
B. Shipping the Return > Crediting the Return: This is the correct answer. It reflects the proper transactional sequence: first ship the items back, then record the vendor credit to reconcile the accounts.
C. Shipping the Return > Create a Journal Entry: While the system will create journal entries in the background to reflect the return, users do not manually create journal entries for this process. Instead, it is handled automatically by processing a vendor credit.
D. Shipping the Return > Mark Shipped on the Return Authorization: This option confuses documentation status with actual transactional flow. While a system may flag the VRA as "shipped," this is not a formal step in the return lifecycle, and it omits the critical crediting portion.

In summary, after approving a Vendor Return Authorization, the next steps are:

Ship the return – ensure that the items are returned to the vendor.
Credit the return – process a vendor credit memo to reflect the financial impact.

This makes B the best answer.

Question 2
Which statement is true about Drop Ship and Special Order items?

A. Can be used for Non-Inventory items for Resale and Inventory items.
B. Items can be marked as both Drop Ship and Special Order.
C. Vendor ships items to customer’s address.
D. Impact Asset and Cost of Goods Sold (COGS) accounts upon item receipt and fulfillment.

Correct Answer: C

Explanation:
Drop Ship and Special Order processes are commonly used in NetSuite and other ERP systems to facilitate different types of fulfillment scenarios that do not follow the standard "stock-and-ship-from-warehouse" model. Understanding how these two item types behave in the system is key to managing fulfillment and accounting operations effectively.

A Drop Ship item is a product that a company sells to a customer but does not stock in its own warehouse. Instead, when a customer places an order, the company sends a purchase order directly to the vendor, who then ships the item directly to the customer’s address. This model reduces handling time and inventory overhead for the company. This is also true in Special Orders, though the vendor ships the item to the company, not the customer.

Let’s analyze the options one by one:

A. Can be used for Non-Inventory items for Resale and Inventory items.
This statement is partially correct but misleading. While Drop Ship and Special Order functionalities can support both inventory and non-inventory items for resale, not all item types are always eligible, and this behavior can depend on system setup and configuration. Therefore, while this is possible, it's not universally true for all system configurations.
B. Items can be marked as both Drop Ship and Special Order.
This is incorrect. An item cannot be flagged as both Drop Ship and Special Order simultaneously in most ERP systems, including NetSuite. These are mutually exclusive flags that determine different fulfillment paths. An item must be set up as either one or the other to avoid confusion in order processing.
C. Vendor ships items to customer’s address.
This is true for Drop Ship items. In a Drop Ship scenario, once a sales order is created and a purchase order is generated from it, the vendor is instructed to send the item directly to the end customer. This eliminates the need for the item to pass through the seller's warehouse and significantly reduces handling time and cost. It’s the key defining feature of Drop Ship functionality.
D. Impact Asset and Cost of Goods Sold (COGS) accounts upon item receipt and fulfillment.
This is not accurate for Drop Ship items. In most cases, Drop Ship items do not impact inventory asset accounts, because they do not enter your inventory. However, COGS may still be impacted, but only at the time of vendor billing and item fulfillment confirmation. Special Orders, on the other hand, might impact both asset and COGS depending on how the items are received and fulfilled. The statement is therefore too broad and does not accurately apply to both item types.

In summary, the correct and most consistently true statement regarding Drop Ship and Special Order items is:

C. Vendor ships items to customer’s address.

This describes the essential characteristic of Drop Ship items and accurately reflects system behavior without introducing ambiguity or conditional exceptions.

Question 3
In NetSuite, when assigning permissions to manage saved or persistent search functionality through scripting or advanced system use, which of the following is a valid permission level for Persist Search?

A. Create
B. View
C. Edit
D. Full

Correct Answer: D

Explanation:
In NetSuite, Persisted Search refers to the ability to save and reuse complex search results across sessions, scripts, and workflows. This functionality is particularly useful in scripting contexts (e.g., SuiteScript) where the search object can be reused without rebuilding the logic every time. To allow this kind of persistent usage, users or scripts need appropriate permission levels.

The Full permission level grants complete access to create, view, modify, and delete persisted searches. This includes the ability to use these searches within advanced features like SuiteScript, which often require full control over saved search definitions and results.

Create is used for generating new records or searches but does not necessarily allow full management or scripting use.
View allows visibility but restricts editing or saving changes, and it's insufficient for scripting purposes.
Edit allows modification but may still limit certain high-level operations or automated uses that are permitted under the Full level.
Full, on the other hand, grants complete functionality over persisted searches, making it the only valid level for full utilization in scripting or advanced workflows.

Thus, the correct and required level of permission for Persist Search is Full, making D the correct answer.

Question 4
A company wants to include the same disclaimer message in the footer of all its PDF invoices. What action should the Administrator take to accomplish this?

A. Edit the custom Invoice form and enter the message in the Disclaimer field.
B. Enter the disclaimer message in the Sales Form Memo field.
C. Edit the custom Invoice form and change the Printing Type to Advanced.
D. Create a custom Disclaimer field on the customized Invoice form and enter the message.

Correct Answer: A

Explanation:
When a company wants to consistently print a disclaimer message in the footer section of its PDF invoices in NetSuite, the most direct and appropriate method is to use the Disclaimer field on the custom Invoice form. This method ensures that the message will appear on every printed or PDF-rendered invoice generated from that form.

Let’s break this down step-by-step:

In NetSuite, standard and custom transaction forms (such as invoices, sales orders, etc.) allow for customization of layout, fields, and display logic.
Among the customizable fields on a custom transaction form, there is a field called Disclaimer. This field is specifically used to add any legal, regulatory, or informational disclaimer text that should appear consistently—often in the footer area—on printed or PDF forms.
When you populate the Disclaimer field in a custom invoice form, this text is automatically rendered in the appropriate section during PDF generation, assuming you're using the standard PDF/HTML template or Advanced PDF/HTML template with the correct token in place.

Now let’s consider why the other choices are not ideal:

B. Enter the disclaimer message in the Sales Form Memo field: The Memo field is generally used for internal notes or short comments related to the transaction. While it may show on certain form layouts, it's not intended for consistent, formatted footer messages like a disclaimer.
C. Edit the custom Invoice form and change the Printing Type to Advanced: While Advanced PDF/HTML allows for highly customized formatting and layout, simply switching to Advanced Printing doesn't automatically add the disclaimer. You would still need to manually edit the template and place the disclaimer token. This makes the task more complex than needed if the goal is simply to add standard disclaimer text.
D. Create a custom Disclaimer field on the customized Invoice form and enter the message: This would require unnecessary customization and scripting. NetSuite already provides a built-in Disclaimer field on transaction forms specifically for this purpose.

The most efficient and standard-compliant way to achieve this requirement is by editing the custom invoice form and entering the message in the Disclaimer field, which makes A the correct answer.

Question 5
What action is permitted for a user role that has the Override Period Restriction permission in NetSuite?

A. Post to a locked period
B. Post to neither closed nor a locked period
C. Post to a closed period
D. Post to both a closed and/or a locked period

Correct Answer: A

Explanation:
In NetSuite, accounting periods can be in various statuses—open, locked, or closed—to control when users can post transactions. These statuses are important for ensuring financial integrity, preventing unauthorized back-dated entries, and supporting audit readiness. Let’s define the relevant terms first:

A locked period prevents users from posting transactions unless they have special permissions.
A closed period is completely closed off for any financial activity. Not even administrators can post into a closed period without re-opening it.
The Override Period Restriction permission allows designated users to post into locked periods, but it does not allow posting into closed periods.

So now, let’s evaluate each option in light of this permission:

A. Post to a locked period: This is correct. The main function of the Override Period Restriction permission is to allow a user to post transactions in a locked period, typically used when adjustments or late entries need to be made after the general ledger has been temporarily restricted.
B. Post to neither closed nor a locked period: This is incorrect. A user with this permission can post to locked periods, so the statement is too restrictive.
C. Post to a closed period: This is incorrect. NetSuite does not allow posting into closed periods unless the period is manually re-opened, and this permission does not override that safeguard.
D. Post to both a closed and/or a locked period: This is incorrect. As explained, Override Period Restriction applies only to locked periods, not closed ones.

Therefore, the correct answer is A: users with the Override Period Restriction permission can post to locked periods, but not to closed periods. This capability is particularly useful for roles like finance managers or accountants who may need to make end-of-period adjustments while keeping the period restricted from general access.

Question 6
What is the highest number of quantity-based Price Levels that a user can configure in NetSuite?

A. Unlimited
B. 2
C. 99
D. 50

Correct Answer: C

Explanation:
In NetSuite, quantity-based price levels are a powerful pricing feature that allows businesses to offer different prices depending on the quantity of an item being purchased. This is particularly useful for wholesale operations, volume discounts, and tiered pricing structures.

When you create or manage price levels in NetSuite, you can define specific quantity ranges and the corresponding unit prices for each range. These can be applied globally or tailored to specific customers, items, or customer groups.

Now, to understand the limits:

NetSuite allows up to 99 quantity-based price levels per item. This means you can define 99 different quantity breakpoints and assign corresponding prices for each level. For example, you could have different prices for quantities like 1–10, 11–20, 21–30, all the way up to your 99th tier.

Let’s now examine each option:

A. Unlimited: This is incorrect. While NetSuite is flexible, it does impose a limit of 99 quantity pricing levels. This limit ensures system performance and database manageability.
B. 2: This is incorrect. While you could choose to define only two quantity-based levels, the system allows significantly more—up to 99.
C. 99: This is correct. NetSuite supports up to 99 quantity-based pricing levels per item. This provides significant flexibility for companies that need detailed tiered pricing structures.
D. 50: This is incorrect. Though 50 levels might be sufficient for many use cases, NetSuite allows nearly double that.

It's also important to distinguish between price levels and pricing tiers within a price level. In NetSuite, you can have multiple price levels (e.g., Base Price, Wholesale, Retail), and each of those can have up to 99 quantity breaks.

Question 7
Which shipping carrier requires you to review and respond to invoice information when configuring a Shipping Integration account in NetSuite?

A. FedEx
B. UPS
C. USPS
D. None

Correct Answer: A

Explanation:
When setting up a Shipping Integration account in NetSuite, each carrier—such as FedEx, UPS, and USPS—has its own unique setup requirements. These requirements often involve authentication steps, linking credentials, and configuring billing or invoice-related settings.

For FedEx, one of the unique steps in setting up their integration with NetSuite involves reviewing and responding to invoice information. This is part of FedEx's Web Services registration and account validation process. The purpose of this step is to confirm that the person registering has access to and authority over the account. FedEx uses invoice data to verify the ownership of the account during integration.

Here’s how this typically works:

During the FedEx Shipping Integration setup in NetSuite, you are required to input recent invoice information (such as invoice number, amount, and date) from your FedEx account.
FedEx uses this to validate the account being linked, adding a layer of security to the registration process.
Without correct invoice data, the integration process cannot be completed successfully.

Let’s review the options:

A. FedEx – Correct. FedEx requires invoice verification during integration to confirm ownership of the account.
B. UPS – Incorrect. While UPS requires credentials and may require API keys, it does not typically ask for invoice review as part of the setup process in NetSuite.
C. USPS – Incorrect. USPS (when integrated through Endicia or Stamps.com) also does not require invoice review during integration setup.
D. None – Incorrect. Since FedEx explicitly requires invoice validation, this option is not accurate.

Question 8
Which statement is true when creating Statistical Accounts?

A. The Unit Type field can be changed after saving a Statistical Account.
B. The Include Children checkbox is greyed out when selecting Subsidiaries for a Statistical Account.
C. A Statistical Account is debit positive and not excluded from foreign currency translation.
D. Currency-specific fields do not display when creating a Statistical Account.

Correct Answer: D

Explanation:
In NetSuite, Statistical Accounts are used to track non-monetary data such as headcount, square footage, or machine hours, and can be used in conjunction with financial data to perform allocations or generate more meaningful reports. These accounts differ from standard general ledger accounts primarily because they are non-financial in nature.

Let’s examine the choices:

A. The Unit Type field can be changed after saving a Statistical Account.

This statement is false. Once a Statistical Account is saved, the Unit Type field becomes locked and cannot be edited. This is because the unit type (e.g., people, hours, units) determines how the statistical data will be recorded and used in reports and allocations. Changing it after transactions have been posted could compromise data integrity and reporting accuracy.

B. The Include Children checkbox is greyed out when selecting Subsidiaries for a Statistical Account.

This statement is false. The Include Children checkbox is typically available when selecting subsidiaries, allowing you to include sub-subsidiaries for broader data application. It is not greyed out by default unless the role or permissions prevent selection.

C. A Statistical Account is debit positive and not excluded from foreign currency translation.

This statement is false. Statistical Accounts are non-monetary, so they are excluded from foreign currency translation entirely. The notion of debit-positive or credit-positive generally applies to financial accounts, not statistical accounts, since these don’t track amounts in any currency.

D. Currency-specific fields do not display when creating a Statistical Account.

This is the correct answer. Because Statistical Accounts do not involve currency values, all currency-specific fields (e.g., currency, exchange rate) are not displayed when you create one. This simplifies the interface and highlights the non-financial nature of these accounts. It also means they are not subject to processes like foreign exchange revaluation or consolidation currency translation.

When creating a Statistical Account in NetSuite, the system recognizes that this account will be used for non-financial tracking, and accordingly hides any fields related to currency. This makes D the only true statement among the options provided.

Question 9
A company reduces overhead by not keeping stock of Item A at their warehouse. When a customer generates a Sales Order for Item A, the company generates a linked Purchase Order to a preferred vendor and can only fulfill the order upon receiving the item receipt.
Which item type meets the company’s requirements?

A. Non-Inventory Item for Sale
B. Drop Ship item
C. Non-Inventory Item for Resale
D. Special Order item

Correct Answer: D

Explanation:
The scenario describes a Just-in-Time procurement approach, where a company does not maintain stock of a specific item but instead orders it from a vendor only after a customer places a Sales Order. The key details include:

No stock is held in inventory.
A Purchase Order is automatically or manually generated when the Sales Order is entered.
The company must receive the item (Item Receipt) before it can be fulfilled and shipped to the customer.

This behavior is most aligned with the Special Order item type in NetSuite.

Let’s break down the options:

A. Non-Inventory Item for Sale

This item type is used when the business sells an item but does not purchase it for resale, nor does it need to track inventory quantities. It is typically used for services or one-off items that don’t require fulfillment or receiving.
Not appropriate in this case, because a linked PO and receipt process is not involved.

B. Drop Ship item

A Drop Ship item is also not held in inventory, but when a Sales Order is created, the system generates a PO to the vendor with the customer’s shipping address, and the vendor ships directly to the customer.
This does not match the scenario because the company receives the item first before fulfilling the Sales Order, which is not how drop shipping works.

C. Non-Inventory Item for Resale

This item type is used for items the company purchases and resells but does not track inventory. Although it involves purchasing from a vendor, it does not inherently generate linked POs or require an item receipt. It’s more for general resale purposes without tracking stock.
Not a full match for this use case.

D. Special Order item

A Special Order item behaves exactly as described in the scenario:

The item is not kept in stock.
When a customer places a Sales Order, the system generates a linked Purchase Order to a preferred vendor.
The item must be received by the company (item receipt) before it can be fulfilled and shipped to the customer.
Helps manage custom orders, low-demand items, or expensive goods where inventory holding would be inefficient.

The Special Order item type is designed specifically for situations where the company only procures an item in response to customer demand and must receive it before fulfillment. This matches all key details in the scenario.
Therefore, the correct answer is D.

Question 10
One item on a Return Authorization is damaged and will not be added back into Inventory. Which Accounting Preference needs to be enabled to process the Return Authorization?

A. Write-Off Account for Returns
B. Enforce Minimum Quantity on Return Authorizations
C. Credit in Advance of Vendor Return
D. Allow Overage on Item Receipts

Correct Answer: A

Explanation:
When an item is being returned through a Return Authorization, and it is damaged, the organization may decide not to restock it in inventory. Instead, the item's value must be written off because it cannot be resold or reused.

In NetSuite, this situation requires a specific accounting treatment. The system must know where to post the cost of the non-returnable item. This is handled through an Accounting Preference that allows for such write-offs: the “Write-Off Account for Returns.”

Let’s go through the answer choices to see why A is correct and the others are not:

A. Write-Off Account for Returns

This is the correct accounting preference.
When an item is not eligible to be restocked (due to being damaged, expired, or defective), NetSuite provides the ability to write off the value of the item to a designated general ledger account.
This accounting preference allows you to:

Automatically post the value of the damaged item to a write-off account, rather than trying to force it back into inventory.
Complete the Return Authorization even though the item isn't returned to stock.
Accurately reflect losses due to damage or shrinkage.

Without enabling this setting and defining a write-off account, NetSuite may block the processing of the return unless the item is returned to inventory, which would lead to incorrect financial reporting.

B. Enforce Minimum Quantity on Return Authorizations

This option enforces rules about the minimum quantities that can be returned. It is not relevant to damaged goods or handling non-inventory returns.
This preference is more about validation rules, not accounting treatment of damaged returns.
Not applicable in this scenario.

C. Credit in Advance of Vendor Return

This option is used when dealing with vendor returns, and it allows the system to issue a credit before the physical return is complete.
This is relevant for purchasing workflows, not customer returns of damaged items.
Not the correct accounting preference for this situation.

D. Allow Overage on Item Receipts

This preference relates to the receiving process, where more quantity is received than was ordered.
It is used during purchase order receiving, not in the return process.
Completely unrelated to the damaged item scenario.

To properly handle a damaged item on a Return Authorization — one that will not be returned to inventory — the system must know how to account for that loss. The Write-Off Account for Returns preference enables this by specifying where to post the cost of returned items that are not restocked