NetSuite 2026.2: NLAuth stops working in 2027.1, and four other changes

As of July 13, 2026, all NetSuite users can set up passwordless authentication with a passkey. Once set up, the passkey can be used at the next login instead of a password. Passkeys are available only for logging in to the account, and a password is still required for other actions inside NetSuite.

As of 2026.2, users who set up a passkey that complies with the FIDO2 specification can also use it as a second authentication factor during login. Administrators can disable this feature, which requires users with FIDO2 compliant passkeys to use an authenticator app for 2FA instead. NetSuite prompts users to enter a code from an authenticator app every three months, to confirm that a working 2FA setup exists for cases where a passkey cannot be used.

The same section of the release notes carries three end of support announcements.

NLAuth. As of 2027.1, all integrations that use NLAuth as an authentication method will stop working. Oracle notes that this end of support does not include existing integrations that use the IssueToken endpoint.

Token-based Authentication. As of 2027.1, you will not be able to create new integrations that use TBA for authentication. This covers both the IssueToken endpoint and the three step TBA authorization flow. Oracle describes the limitation as preparation for the end of support of the TBA feature, tentatively planned for the 2028.1 release. Existing integrations will continue to work until that final end of support.

PKCE. Previously PKCE was an optional security extension for the OAuth 2.0 authorization code grant flow when using a private client, and was required only for flows using a public client. As of 2027.1, PKCE parameters will be required for all new integrations that use the OAuth 2.0 authorization code grant flow. Existing integrations without PKCE will remain functional.

Banking carries seven separate entries in the 2026.2 release notes. They combine into a reworked matching and reconciliation flow.

A new Match Suggestions subtab on the Match Bank Data page lets you review suggestions before you reconcile. Previously the Review subtab displayed automatic matches when NetSuite found a likely match using reconciliation rules or AI tools. The Match Suggestions subtab displays imported transactions along with suggested matches and a suggested action for each one. The available actions are Match Transaction, Review Match Options, Apply Payment, Review Payment Options, and Create followed by a transaction type, which creates and reconciles a transaction based on an auto create rule.

On payment application, the release notes state that previously only the accounts receivable side of this workflow was available, accessible from the Automated Cash Application page. Now you can review, create, apply and reconcile open invoices and open payables from the Match Bank Data page. NetSuite can create and apply the payment to the open invoice or payable, then match the payment to the imported transaction.

Manual matches and cleared transactions are now submitted for reconciliation automatically from the Match Bank Data page. The updated workflow removes the separate submission step from the Review subtab there, and submitted transactions appear on the Review subtab of the Reconcile Account Statement page. Two labels change on the Match Bank Data page: Match and Submit replaces the Match button, and Clear and Submit replaces the Clear button.

System notes and match ownership

System notes now track matching and reconciliation events on related general ledger transactions. To view them, open the related transaction record and click the System Information subtab. Reconciliation Status and Date Reconciled are also available in transaction searches and specific accounting reports. Per the release notes, this lets you review when a transaction was cleared, submitted for reconciliation, unmatched, reconciled or unreconciled, and use the Reconciled Status field in transaction searches and reports.

On the Match Bank Data and Reconcile Account Statement pages, the Review tab now shows Matched By and Submitted By columns indicating whether the action was performed by a user or by the system. Opening the match link shows additional match and submission details including the user, date and time. You can filter submitted matches by system generated matches, user generated matches, or a specific user. The Excluded tab identifies the user or system action responsible for an exclusion.

WhereTransactions > Bank > Bank Matching and Reconciliation > Match Bank Data

Two accounting preferences control payment application suggestions, Generate Match Suggestions for Accounts Receivable and Generate Match Suggestions for Accounts Payable. Both are enabled by default. On the interface itself, the To Be Matched tab is renamed Transactions to Match and the Excluded tab is renamed Excluded Transactions. On the Transactions to Match tab, action buttons now appear above and below the transaction lists, and the tab includes filter chips for date, type and cash flow type.

Separately, NetSuite now displays banners on the Format Profile and Upload File pages warning that imported bank transaction memo fields may contain sensitive information such as bank account numbers, credit card numbers and addresses.

Payment Runs give you an accounts payable workflow for preparing, reviewing, approving and processing multiple payables from a single transaction. You create a payment run, select eligible payable transactions, save the selection, review it, and submit it when ready.

The selected payment account determines subsidiary and currency context. From there you can add eligible vendor bills, vendor credits, journal entries, expense reports and bill payments. When you submit the payment run, NetSuite uses the Bulk Processing Framework to create the resulting vendor payments, grouped consistently with existing Pay Bills behavior.

The release notes state two benefits and one capability list. On benefits, payment runs help improve control and traceability by reducing duplicate payment selection and by showing related payment activity on source transactions.

On capability, Payment Runs supports standard NetSuite transaction capabilities where applicable:

• Permissions and approvals
• Custom fields and custom segments
• Numbering and searches
• REST, SuiteScript and CSV exposure

Inventory Optimization appears under Inventory Management, and Rough-Cut Capacity Planning appears under both Inventory Management and Manufacturing.

Inventory Optimization

The Inventory Optimization feature helps supply planners set Reorder Point planning parameters based on demand patterns, lead time variability and service level targets.

Segmentation classifies items or item locations into ABC and 123 categories. Each assigned segment has a service level that NetSuite uses for downstream planning calculations, and planners can override the service level for specific items or item locations. When NetSuite calculates optimized planning parameters, it updates lead time, safety stock level, reorder point and preferred stock level for eligible item locations, and stores segmentation and planning calculation results for SuiteAnalytics reporting.

To use the feature, enable Advanced Inventory Management, then check the Inventory Optimization box on the Items and Inventory subtab at Setup > Company > Enable Features. Enabling the feature does not change existing planning values until you include eligible Reorder Point items in Inventory Optimization. Users with the Administrator role can control access to Inventory Optimization records and tasks with the Inventory Optimization permission. After setup, planners can set optimization preferences, review the nine predefined Inventory Optimization Segment records, include eligible items, and run or schedule segmentation at the item or item location level. Per location segmentation requires the Advanced Item Location Configuration feature.

Exception Management for Inventory Optimization also gains inventory exception detection, covering projected stock out, shortage and overstock exceptions. It requires Inventory Optimization to be enabled plus the appropriate Exception Management and Inventory Optimization permissions, and the exceptions appear on the Inventory Imbalance tab of the Exception Management page.

EnableAdvanced Inventory Management, then Setup > Company > Enable Features > Items & Inventory > Inventory Optimization

Rough-Cut Capacity Planning

Rough-Cut Capacity Planning helps you review required and available capacity by work center over a selected date range. The report uses planned time from work orders and planned work orders to identify potential overloads and underloads.

You can filter the report by subsidiary, location, work center, date range, assembly item, supply plan definition and other planning criteria, and view results in daily, weekly or monthly time buckets. It shows total and required machine and labor capacity as well as machine and labor utilization, and you can refine results by resource type and utilization range. Expanding a report row shows related transaction details including operation, transaction number, start and end dates, required capacity and utilization.

Two connection points are worth noting. When Supply Planning is used, planned work orders are included in RCCP only if they were created from a Supply Plan Definition with the Include in RCCP box checked, and that box is clear by default. Separately, Work Center records now include total machine and labor capacity resource fields used to calculate available capacity for RCCP reporting.

Three SuiteBuilder entries in 2026.2 relate to how NetSuite describes custom objects to AI features.

AI Description fields have been added for custom record, custom field and custom transaction definitions for all customers. The fields appear in the main body section of each definition page and hold up to 280 characters. An Optimize for AI action enhances the description for AI use. Per the release notes, AI features use the description to understand the meaning of the custom object, which enables them to deliver relevant answers to user questions about the object.

The release notes name the destination. Descriptions added in the AI Description field are used by NetSuite AI features such as the NetSuite AI Connector Service. That service uses Model Context Protocol to connect external AI platforms, with ChatGPT and Claude given as examples, to your NetSuite data.

Advanced Record Customization provides a centralized layer where administrators can review, manage and override record definitions from a single location, at Customization > Advanced Record Customization. It supports overrides for custom record types and custom transaction types, and also for selected standard record types. Overrides apply at the account level, and when an ARC override exists, changes made elsewhere in NetSuite or through installed partner solutions are not applied. AI Description is the first record definition attribute administrators can override, and when an ARC AI description override exists, the override becomes the effective AI description used by AI features.

Administrators can currently use ARC to view and filter existing record types including name, ID, record family, record type source and effective AI description, view effective AI descriptions across supported record types, identify record types using ARC overrides, create or update overrides, add descriptions for SuiteApps and bundles where the owner provided none, compare default and override descriptions, revert overrides to restore the default, and use Optimize for AI when editing.

Two more changes to be aware of

Default sorting changed for SuiteQL and Analytics datasets

With the 2026.2 release, SuiteQL queries and Analytics datasets based on generic transactions use Transaction.tranDate as the default sort field when no sort order is specified. Previously they used Transaction.tranDisplayName. Oracle states that the change helps prevent performance issues.

Per the release notes, the change may alter the order of returned results. Queries and datasets that specify a sort order are not affected, and if result order is important you should specify the required sort order.

Advanced Pricing gains bulk import and new views

Pricing records are now supported in the CSV Import Assistant. Previously you could create price rules and price rule entries only one at a time, which the release notes say slowed high volume processing and data migration and increased the risk of manual entry errors. To use it, go to Setup > Import/Export > Import CSV Records, select the Accounting import type, then select the Price Rule or Price Rule Entry record type. The assistant lets you map all standard and custom fields available in the UI, REST or SuiteScript, and no additional setup is required.

Price rules can also use item collections and customer groups. Where those collections or groups are dynamic, meaning based on a saved search, NetSuite refreshes their membership on a schedule, precomputes and stores a snapshot of the members, and uses that snapshot during price evaluation rather than running the saved search on every evaluation.

Two additions on the reporting side. Advanced Pricing now includes a dedicated Price Level view showing how price levels relate to items, customers and pricing configuration. And the Sales Pricing Overview Workbook now includes a Sales by Price Rule pivot table, showing the total value of invoiced transactions by active price rule within a selected date range.

ImportSetup > Import/Export > Import CSV Records, select the Accounting import type

Two related items appear elsewhere in the notes. Units Type records are now supported in the CSV Import Assistant, requiring no additional setup beyond enabling the Multiple Units of Measure feature. And when exporting lists, saved searches and reports to Excel, the default format is now .xlsx rather than .xls.