What is a crucial step when defining formatting based on conditions in NetSuite?

Adding a legend to explain the highlighting is essential when defining formatting based on conditions in NetSuite because it enhances user understanding and clarity. When you apply conditional formatting, the changes in appearance—such as colors or styles—are primarily for visual distinction, which can sometimes lead to confusion about the meaning behind those changes. A legend clarifies what each formatting style represents, ensuring that users can accurately interpret the data presented.

This practice promotes effective communication of information, as it eliminates ambiguity may arise from visual cues alone. It also ensures that anyone reviewing the report or dashboard can easily grasp the conditions that led to the different formatting, making the data more actionable and understandable.

Other options do not correctly reflect best practices for effective conditional formatting and user communication in NetSuite.