User expects to have no posting against the Standard COGS account and only the Intercompany COGS should be impacted.
For arm’s length intercompany inventory transfer/sale, users are NOT supposed to mark any COGS account as Elimination, including Intercompany COGS account.
When the Intercompany COGS is marked for elimination, it will result in double booking of COGS, because the Standard COGS account is used for Intercompany Elimination. This will also result in a balance in CTA account.
Currently, NetSuite is not capable of knowing or detecting the future on when will the Items be sold to external customers. Therefore, the regular COGS is being eliminated at the time when the intercompany transactions were created. Once the system is capable of identifying the difference between intercompany sale and sale to external customer, then the intercompany elimination account may be marked for elimination.