Overview
Blue Onion's reconciliation platform requires specific data flows in NetSuite to successfully perform order-to-cash reconciliation. This guide outlines best practices for configuring your NetSuite order flow to ensure optimal Blue Onion performance and accurate financial reporting.
Core Requirements for Blue Onion Success
Essential Data Relationships
Blue Onion's reconciliation engine depends on clear, traceable relationships between:
Order Management System (OMS) records with unique identifiers
Payment processor transactions linked to specific orders
NetSuite financial records that mirror these relationships
Bank settlement data that can be matched to payment processor activity
Critical Success Factor: One-to-One Traceability
Blue Onion requires the ability to trace from individual orders through to specific payment records in NetSuite. This enables:
Order-level reconciliation and variance detection
Automated deposit creation with detailed backup
Comprehensive audit trails
Recommended Order Flow Configurations
Standard Shopify Flow (Assumes Payment Captured at Order)
Optimal Configuration:
Order Placed → Sales Order → Item Fulfillment → Invoice → Customer Deposit → Bank Settlement
Key Characteristics:
Individual customer deposits or customer payments created for each order at the time of order
Item fulfillment and Invoice created at the time of fulfillment
Customer Deposits/Payments remain in Undeposited Funds until settlement (clearing accounts can work but not encouraged for maximum visibility)
Refunds processed as customer refunds or cash refunds
Standard Amazon Flow
Option 1: Individual Payment Method
Configuration:
Order Placed → Sales Order → Item Fulfillment → Invoice → Individual Payment Record → Bank Settlement
Key Characteristics:
Individual customer deposits or customer payments, item fulfillment and invoice all created for each order at fulfillment
Some setups may prefer to create payments at the time of payment initiation instead of fulfillment to show value in Accounts Receivable instead of Undeposited Funds
Customer Deposits/Payments remain in Undeposited Funds until settlement (clearing accounts can work but not encouraged for maximum visibility)
Refunds processed as customer refunds or cash refunds
Refunds can be omitted if data is not easily synced from Amazon to NetSuite
Option 2: Cash Sale Method
Configuration:
Order Placed → Cash Sale → Bank Settlement
Implementation Details:
Consolidates order fulfillment and payment into single transaction
Reduces transaction volume
Payments accumulate in undeposited funds until settlement
Suitable for high-volume, low-complexity scenarios
Common Pitfalls and How to Avoid Them
Lump Sum Payments
What Is It:
Multiple orders settled in single payment record
FIFO or arbitrary allocation methods
Lack of order-level traceability
Why It Fails:
Blue Onion cannot perform order-level matching
Creates unresolvable variances
Eliminates audit trail benefits
Prevents automated reconciliation
Using Cash Sales at Fulfillment (when payment is captured at order)
What Is It:
Cash sales are created at fulfillment but payment is captured earlier
Aggregated payment data
No fee breakdown or reconciliation
Why It Fails:
Cannot validate against processor records
Manual processes prone to errors
Limited visibility into transaction details
Failing To Record Refunds in NetSuite
What Is It:
Cash sales are created at fulfillment but payment is captured earlier
Aggregated payment data
No fee breakdown or reconciliation
Why It Fails:
Cannot validate against processor records
Manual processes prone to errors
Limited visibility into transaction details
Fee Handling Best Practices
Accrual Management
Recommended Approach:
Month-End Accruals: Estimate fees for timely financial close if material to your
Automated Reversals: Reverse estimates when actual data available
Blue Onion Fee Mapping: Map actual fees to expense accounts
Reconciliation: Ensure estimated vs. actual fees net appropriately
Payment Processor Fee Allocation
Best Practices:
Map each fee type to appropriate GL accounts
Collapse similar fees at payout level to reduce transaction volume
Maintain ability to drill down to transaction detail when needed
Consider audit requirements for fee documentation
Conclusion
Successful Blue Onion integration requires thoughtful NetSuite configuration that prioritizes order-level traceability and consistent transaction processing. By following these best practices, organizations can achieve automated reconciliation, improved financial controls, and streamlined month-end processes while maintaining comprehensive audit trails and accurate financial reporting.
The key is establishing clear, traceable relationships between orders, payments, and bank settlements that Blue Onion's reconciliation engine can reliably process and match across all data sources.