Running Intercompany Elimination

You can run the intercompany elimination process only from the Period Close Checklist. Ensure that you have completed all other period closing tasks before you run elimination. The Revalue Open Foreign Currency Balances and Calculate Consolidated Exchange Rates determine the gains and losses that post. These gains and losses post to the Cumulative Translation Adjustment – Elimination (CTA-E) account.

When you run elimination, NetSuite posts elimination journal entries. You can run intercompany elimination for a period multiple times, as needed. NetSuite does not support running multiple intercompany elimination process at the same time.

To run intercompany elimination:

1. From the Period Close Checklist, click the Eliminate Intercompany Transactions icon.
2. Verify the Period is correct.
3. Click Run Intercompany Elimination.
4. Select a class, department, and location, if used. Optionally, add a memo.
5. If you use Automated Intercompany Management and Multi-Location Inventory features, and the Make Location Mandatory accounting preference, note the following. You must assign a default elimination location to each elimination subsidiary. Then, on the Task: Eliminate Intercompany Transactions page, select the elimination subsidiary from the Location list. The default value is the Default Elimination Subsidiary Location. NetSuite assigns the elimination subsidiary to each intercompany elimination journal entry generated through completing this task.
6. If you use Multi-Book Accounting, the read-only Accounting Book field displays the accounting book for which you are running intercompany transaction elimination.
7. Click Save to run intercompany elimination and post the elimination journal entries for the period.

Viewing Intercompany Elimination Results

Run the Intercompany Elimination Report to view an audit trail of the source transactions and the elimination results for a period. For more information, see Intercompany Elimination Report.

You can also drill down to view the journal entry created when you run intercompany elimination for a period.

To view intercompany elimination results for an open period:

1. Go to Setup > Accounting > Manage G/L > Manage Accounting Periods.
2. Click the Checklist icon for the period you want to view.
3. Click the Eliminate Intercompany Transactions icon.
4. On the Task: Eliminate Intercompany Transactions page, click the Results subtab.
5. Click the link in the Elimination Journal column to view the generated journal entry.
6. On the Lines subtab, drill down to view account and source transaction details.

To view intercompany elimination results for a closed period:

1. Go to Setup > Accounting > Manage G/L > Manage Accounting Periods.
2. Click the Checklist icon for the period you want to view.
3. In the page header of the checklist page, click Notes.
4. On the Accounting Period page, click the Results subtab.
5. Click the link in the Elimination Journal column to view the generated journal entry.
6. On the Lines subtab, drill down to view the account and source transaction details for the journal entry.