Scenario: Is it possible to assign the Intercompany Payable and Intercompany Receivables Account in Cross Charges on a subsidiary level [ie., separate intercompany accounts for each subsidiary]?
The intercompany Company Receivable and Payable accounts are set up in the intercompany accounting preference, which is a company-level preference. Having a subsidiary-wise account definition for the Intercompany Receivable and Payable account is currently logged as an Enhancement within NetSuite and is currently in the voting stage:
Enhancement #279228
Enhancement #445865
The cross-journal charge record itself cannot be edited or modified as it is generated by the system and hence, we cannot directly modify those records manually or using scripts. We tried to reclassify the accounts using additional journal entries using a script but the payment tracking and transaction relation might be an issue, so it may not work. To elaborate, we considered the workaround of transferring the balance of intercompany receivable and intercompany payable accounts that were brought in by Cross Charges to the subsidiary-specific intercompany accounts via Journal entries. We also took into consideration the scripting possibility of automating this process. However, there might be issues as there are no offsetting transactions to neutralize the balance in the subsidiary-specific intercompany accounts. In the absence of the same, the balance in the subsidiary-specific intercompany GL accounts would keep on bulking up without any offsetting reversal aspect.
We have also investigated the possibility of setting default subsidiary-wise A/R and A/P accounts in the ‘Intercompany Entity’ records. However, due to the current system limitations, the Intercompany accounts in the Cross Charges are not impacted by these default preferences in Entity records.
In the case of Cross Charges, we can identify the subsidiaries involved from the ‘Subsidiary’ body field and the ‘Entity’ line column. The Subsidiary field represents the subsidiary of the transaction whereas the Entity name is the transaction entity (vendor/customer) representing the subsidiary. The entity that comes in these Cross charges has been defined as the ‘Intercompany Entity’ in the vendor or customer records. With this in consideration, the best we could do is to create a new separate report/search to get the information that displays subsidiary-wise account payable and receivable amounts.
We can create a Saved Search displaying the amount for the Cross charge Journals with filters for the subsidiary and the line-wise subsidiary representing entities. Thereby, we would be able to identify how much amount is transferable to each intercompany subsidiary account. We can also modify the search as per the client’s preferences.