When we enable the Automated Intercompany Management feature, we can let NetSuite create and update representing entities for all active and inactive non-elimination subsidiaries. Representing entities are vendors and customers that act as agents for a selected subsidiary. The default entity name is the same as the subsidiary name, reduced in length to the field length. If the entity name is not unique in the system, the subsidiary ID is appended to the entity name.
The primary currency is the base currency of the subsidiary. NetSuite adds all of the subsidiary’s currencies, and all of the subsidiary’s secondary subsidiaries to the representing entities’ records.
The default primary subsidiary for the representing entities is the parent (root) subsidiary, but we can select another subsidiary as the primary subsidiary. However, if the primary subsidiary for a representing entity is the first child subsidiary, you cannot change it.
Features to be enabled:
- Automated Intercompany management
- Multiple Currencies
- Multi Subsidiary Customer
- Multiple vendors
When an administrator enables the Intercompany Framework feature or the Automated Intercompany Management feature, NetSuite provides access to the Intercompany Preferences page. Click the Representing Entities subtab – This subtab is for users who want NetSuite to create and maintain representing entities for the Automated Intercompany Management feature.
If we mark the ‘Automatically Generate Representing Entities’ preference checkbox and then save, we can view the system-generated entities on the Subsidiaries list page. The Representing Entities subtab on the Intercompany Preferences page provides a link to the Subsidiaries list page. If we want to regenerate representing entities, the Subsidiaries list page includes a Generate Representing Entities button. If we provide a prefix, we can quickly identify the representing entities generated and maintained by NetSuite.