NetSuite 2026.2 has arrived, and it’s a big one. Passwordless login, smarter AI tools, and a few deadlines worth putting on your calendar are all part of this release. It’s NetSuite’s new release version upgrade, one of two a year, but this one’s got a little bit of everything.
The Big Features in NetSuite 2026.2
Passkeys Are Here: Log In Without a Password
Let’s start with the update most users will notice right away: passkeys. As of July 13, 2026, every NetSuite 2026.2 user can set up a passkey and use it to log in instead of typing a password. If you’re not familiar with the term, a passkey is a form of authentication tied to your device (usually unlocked with your fingerprint, face, or device PIN) that replaces the traditional username-and-password combo with something that’s both faster to use and harder for anyone else to steal or guess. There’s no password to type, remember, or have phished, because the credential lives securely on your device rather than being something you type in each time.
A couple of things worth knowing: passkeys are only for the login screen, so you’ll still need a password for other actions inside NetSuite. And if your passkey meets the FIDO2 specification, you can also use it as your second factor for 2FA instead of an authenticator app. FIDO2 is an open industry security standard designed to make authentication resistant to phishing, and the good news is that most people don’t need to do anything special to meet it. If you’re setting up a passkey using your phone’s Face ID or Touch ID, Windows Hello, or a password manager like 1Password or Google Password Manager, you’re already using a FIDO2-compliant option. This mainly becomes something to check if you’re using a hardware security key or a less common authenticator app, where it’s worth confirming FIDO2 certification before relying on it. Administrators can also disable the passkey-as-2FA option, which would require FIDO2 users to fall back to an authenticator app for 2FA instead.
Bank Reconciliation: AI Handles the Matching
Next up: bank reconciliation just got smarter. NetSuite already used rules and AI to auto-match transactions, but anything it wasn’t confident about used to just get discarded. With NetSuite 2026.2, those ambiguous matches now surface in a new Match Suggestions workspace instead of disappearing, complete with a rationale for each recommendation. You can also compare bank-side and GL-side details side by side to pick from up to five possible options. It’s expanding what this workflow can do, too: creating and applying a payment for a matching invoice used to be AR-only, tucked away on a separate Automated Cash Application page. Now that same “suggest, create, apply” flow works for both invoices and payables, right from the same screen where you’re reviewing matches.
On top of that, manual matches and cleared transactions now get submitted for reconciliation automatically, so there’s one less step standing between you and a closed-out bank account. The audit trail got a real upgrade too. Every match now shows who or what made it and when, right down to System Notes tracking when a transaction was cleared, submitted, unmatched, or reconciled. That’s a nice win for anyone who’s had to explain reconciliation activity to an auditor, or just wants to know why a transaction ended up the way it did.
NetSuite Intelligent Flux Analysis: AI Explains What Changed
Another one for the finance team: NetSuite Intelligent Flux Analysis. If you’ve ever closed out a period and then had to go explain why an account balance moved, you know that’s rarely a quick answer. It uses AI to draft that explanation for you, available right from the Comparative Income Statement or as a task in the Intelligent Close Manager portlet. The goal is to cut down on the manual side of close (comparing reports, tracking down the driver, writing it all up) so accountants and controllers can get to the “why” faster instead of starting from scratch every period.
Account Reconciliation (EPM): AI Predicts Your Matches and Attributes
There’s also a wave of AI upgrades coming to NetSuite Account Reconciliation (part of EPM), aimed at cutting down on the manual side of managing reconciliation attributes and exceptions. Transaction matching assistance uses AI to identify likely matches based on your team’s historical matching activity, complete with confidence scores so you know how much to trust a given suggestion. It’s also designed to get better over time as your team validates or rejects what it recommends. There’s a similar assist for reconciliation assignment, where AI predicts and assigns reconciliation attributes based on past patterns, again with confidence scores attached.
A few supporting features round this out. Balance attributes let you fold additional account-level detail into reconciliations, and global rules give you centralized rule management instead of maintaining rules piecemeal. Automatic alerts handle the routing and tracking of reconciliation exceptions, looping in both internal teams and external users so nothing sits unresolved for long.
Payment Runs: Pay Multiple Bills at Once
On the accounts payable side: Payment Runs is worth a look. It’s a new workflow for preparing, reviewing, approving, and processing multiple payables in one go. No more working through them one at a time or juggling a separate bulk process. You create a payment run and add the eligible payables (vendor bills, vendor credits, journal entries, expense reports, bill payments). Then you save your selection, review it, and submit when you’re ready. Behind the scenes, NetSuite groups the resulting vendor payments the same way the existing Pay Bills process does. It should feel familiar if you’ve used that before. It also plays nicely with the rest of NetSuite. Permissions, approvals, custom fields, custom segments, searches, REST, SuiteScript, and CSV are all supported where applicable.
Inventory Optimization: Reorder Points Based on Real Demand
On the operations side, there’s Inventory Optimization, a new feature for anyone managing reorder points. Instead of relying on static formulas, it sets your reorder point parameters based on actual demand patterns, lead-time variability, and the service-level targets you care about. Once it’s turned on, NetSuite segments your items into ABC/123 categories, each with its own service level (which you can override for specific items if needed). It then uses that segmentation to calculate updated lead times, safety stock levels, reorder points, and preferred stock levels.
It’s opt-in, too. Enabling it doesn’t touch your existing planning values until you actually include eligible items in Inventory Optimization, so there’s no risk of it quietly changing your numbers behind the scenes. Items you don’t include just keep using standard Reorder Point calculations as before.
Advanced Pricing Context: Know Exactly How a Price Was Calculated
Here’s a small but useful one for anyone who’s ever had to explain a price to a confused customer. Sales order lines now show clearer pricing context, so you can see exactly how NetSuite landed on an item’s final price, whether it’s base pricing, a rule-based price, or something customer-specific. Click the tag icon on the item line and you get a Pricing Details summary right there. It’s a nice one for handling audits, catching exceptions, or just explaining a number during order entry without having to dig through price rules to trace how it was calculated.
NetSuite CPQ: AI Guides Complex Configurations
On the sales side: NetSuite CPQ (Configure, Price, Quote) is getting its own AI assistant. When a sales rep or buyer is configuring a complex product in a transaction, a Configure with CPQ Assistant button now appears, launching a guided chat that walks them through the configuration using natural language instead of having to know every rule and option by heart. The assistant clarifies choices and makes real-time recommendations as you go, which should help less experienced reps handle complicated configurations with more confidence.
On the admin side, Administrators and CPQ Product Builders get a new CPQ AI Assistant subtab where they can prep the product, question, and answer records the assistant relies on, review readiness, and control where and when end users actually see the assistant. One thing to note: it’s currently only available for accounts in supported locations and for users with a supported language preference set, so it may not show up for everyone just yet.
Similar Cases Recommendations: Stop Solving the Same Ticket Twice
On the support side: Similar Cases Recommendations is a new CRM feature that identifies previously resolved cases that are semantically similar to the one a rep is currently working on. The suggestions surface in Narrative Insights with useful context (subject, customer name, and a confidence score) so reps can quickly judge whether a past resolution applies before reusing it. For high-volume support teams, that’s a real time-saver. A lot of tickets are repeats of known issues, and this lets reps clear those fast and save the deep investigation for cases that are actually new. It should also make escalations more consistent, since reps are working from the same resolution history instead of each solving the same problem their own way.
Labor Cost Insights: Connect Payroll to Revenue
Over on the HR side, NetSuite is rolling out two new reports built specifically for CFOs: a Labor Costs Report and a Labor Costs and Revenue Insights Report. They let you break down labor costs by period, subsidiary, department, location, or other segments. Both also come with the option to generate AI summaries of the data, so you’re not stuck manually connecting payroll numbers to the rest of your financials just to answer “how are labor costs trending against revenue.” Before you dive in, you can configure exactly which payroll components get included, and the reports can be added right into your existing CFO dashboards.
Rough-Cut Capacity Planning: Know Your Capacity Before You Commit
On the manufacturing side: Rough-Cut Capacity Planning is a new report that helps you see whether you have enough capacity (machine and labor) to actually pull off your production plan before you commit to it. It uses planned time from work orders to flag potential overloads and underloads by work center. You can filter by subsidiary, location, work center, date range, assembly item, and more, and view results in daily, weekly, or monthly buckets.
If you need more detail, just expand any row to see the underlying transaction details: operation, transaction number, start and end dates, required capacity, utilization. You can also refine by resource type or utilization range to quickly spot which work centers are overloaded or sitting idle. If you’re using Supply Planning, planned work orders only show up here when they come from a Supply Plan Definition with the new Include in RCCP box checked.
Excel Exports: Now in .xlsx by Default
A small quality-of-life update for anyone exporting data: lists, saved searches, and reports exported to Microsoft Excel now come out as .xlsx files instead of the older .xls format. For most people this changes nothing day to day, since .xlsx has been the standard Excel format for years. The main thing to check is whether any automated process on your end picks up those exported files and expects the old format or extension, in which case it may need a small adjustment.
Auth Deadlines to Put on Your Calendar
If you’re doing any integration work with NetSuite, a few authentication methods are on their way out. None of these are urgent today, but they’re worth planning around before 2027.1 arrives:
- NLAuth for RESTlets is going away.
As of 2027.1, integrations using NLAuth to authenticate with RESTlets will stop working entirely. If you’re still using it, start planning your move to OAuth 2.0 now. - No new TBA integrations after 2027.1.
You won’t be able to create new integrations using Token-based Authentication (TBA) once 2027.1 lands. That includes the IssueToken endpoint and the three-step TBA authorization flow. Existing TBA integrations will keep working until TBA’s final sunset, tentatively planned for 2028.1, but any new integration work should skip TBA and go straight to OAuth 2.0. - PKCE becomes required for OAuth 2.0 in 2027.1.
If you’re using the OAuth 2.0 authorization code grant flow, PKCE will be a required part of that flow for new integrations starting in 2027.1. Existing integrations without it will keep working, but new ones will need it built in from the start.
Bottom line: if you’re building anything new, build it on OAuth 2.0 with PKCE. NLAuth and TBA are both being phased out, and OAuth 2.0 is clearly where NetSuite wants everyone to land.
A Few Extra Notes for Developers
A handful of smaller updates for anyone doing integration or SDF work:
- Watch out for a default sort order change.
SuiteQL queries and Analytics datasets on generic transactions now default to sorting by Transaction.tranDate instead of Transaction.tranDisplayName when no sort order is specified. If anything you’ve built relies on implicit default ordering, double-check it after upgrading. Queries with an explicit sort order aren’t affected. - Bound parameters now work in REST SuiteQL search.
You can use anonymous placeholders (?) in a SuiteQL query and supply the values separately at execution time, instead of concatenating user input directly into the query string. - Batch operations in REST web services can now run sequentially.
Useful for anything with record dependencies. Think creating a parent record and its children in one batch, where the children reference the parent’s external ID, or inventory adjustments where order affects availability. - New SuiteApp Control Center REST API endpoints.
You can now publish, deprecate, and upgrade SuiteApp installations programmatically, plus filter them by upgrade eligibility and phase. Requires the Release Manager role.
The Takeaway
Those are the highlights of NetSuite 2026.2, a release that leans hard into AI for the repetitive parts of finance work while quietly delivering some real upgrades for operations, manufacturing, and sales teams too. If you take one thing away from the deadlines section, make it this: any new integration work should be built on OAuth 2.0 with PKCE from here on out. And if you want to dig into anything covered here in more detail, the full release notes are worth your time. Just keep in mind they’re still in preview and subject to change as the release rolls out, so some details may shift before everything lands in your account.
How TAC Can Help
NetSuite 2026.2 introduces meaningful changes across authentication, AI, finance, manufacturing, integrations, and development. While many of these features can improve efficiency, knowing which ones apply to your business and implementing them correctly is what delivers real value.
TAC Solutions Group helps organizations evaluate new NetSuite releases, identify high impact opportunities, and implement new functionality without disrupting day to day operations. Whether you’re planning your migration from NLAuth or Token Based Authentication to OAuth 2.0, enabling passkeys, adopting AI powered finance features, or updating custom SuiteScript and integrations for 2026.2 compatibility, our team can help you navigate the changes with confidence.
As a NetSuite Alliance Partner, we work with businesses to ensure new features are implemented securely, customizations remain compatible after each release, and your NetSuite environment continues to scale as Oracle delivers new capabilities. From release readiness assessments and integration modernization to AI adoption and performance optimization, TAC can help you get the most out of every NetSuite upgrade.
