Automating the import of bank statements is a critical step in streamlining the bank reconciliation process and achieving a near real-time view of your cash position. NetSuite offers several methods to bring bank transaction data into the system, but it is crucial to understand the distinction between the different connectivity and authentication methods to ensure a stable and secure connection.

Prerequisites

Before you begin, ensure the following are in place:

• A Bank Account record has been created in NetSuite for each account you wish to connect (Lists > Accounting > Bank Accounts).

• The necessary banking features are enabled. Go to Setup > Company > Enable Features, and on the Banking subtab, ensure that Bank Connectivity and/or Bank Feeds are checked.

  
  

Understanding the Connectivity Options

NetSuite provides two primary methods for importing bank data: direct connections (Bank Feeds) and file-based imports (which can be manual or automated).

Option 1: Direct Connections (Bank Feeds SuiteApps)

This method uses a SuiteApp to connect directly to your financial institution. However, the stability and security of this connection depend heavily on the authentication method used by the specific bank and SuiteApp.

• Credential-Based Aggregation (Less Stable): Many traditional Bank Feeds SuiteApps use a "screen scraping" method. You provide your online banking username and password, which NetSuite stores (encrypted) and uses to log in on your behalf. This method is prone to frequent timeouts and connection failures, especially if the bank updates its website or requires multi-factor authentication (MFA). It is becoming less common and is not the preferred approach.

• Token-Based/OAuth (More Stable): Modern direct connections use Token-Based Authentication (OAuth). When you set up the connection, you are redirected to your bank's secure portal to authorize NetSuite. Your banking password is never stored in NetSuite. Instead, the bank issues a secure token that grants NetSuite access. This method is far more secure and stable, as it is not affected by password changes and is designed to work with modern banking security.

Option 2: File-Based Import (Manual or Automated)

This method involves importing a statement file. It is universally compatible but can involve more manual steps unless fully automated.

• Manual Import: You download a file (in formats like OFX, QFX, BAI2, or CSV) from your bank's online portal and then upload it into NetSuite using a pre-configured Format Profile.

• Automated SFTP Import: The Auto Bank Statement Import (ABSI) SuiteApp allows you to configure a connection to an SFTP server. If your bank can automatically place statement files on this server, NetSuite can be scheduled to retrieve and import them automatically. This is a very reliable method if your bank supports it.

  
  

Configuration Process Overview

For a Modern, Token-Based Connection:

1. Install the appropriate Bank Feeds SuiteApp that supports OAuth for your bank/region.

2. Navigate to Setup > Accounting > Financial Institutions and configure the connection, which will redirect you to your bank's portal for authorization.

3. Link the newly configured institution to your NetSuite Bank Account record.

For an Automated SFTP Import (ABSI):

1. Install the Auto Bank Statement Import (ABSI) SuiteApp.

2. Create a Format Profile (Setup > Accounting > Format Profiles) and set the Connectivity Method to SFTP.

3. On the format profile, configure your SFTP server credentials and file paths.

4. Map the accounts in the file to your GL accounts in NetSuite.

   
   

Fact-Checking and Clarification

Based on user feedback, the distinction between authentication methods has been clarified:

• Traditional Bank Feeds: Often rely on less stable, credential-based login simulation.

• Modern Bank Connections: Use secure, stable, token-based (OAuth) authentication that does not store user passwords.

• ABSI (SFTP): A highly reliable file-based method that bypasses the need for direct bank login entirely.

When choosing a direct connection method, it is critical to determine whether it uses modern, token-based authentication or the older, less reliable credential-based approach.