Requirement
The task involves analyzing the client’s requirements for an intercompany management system. The client intends to purchase parts from one subsidiary for use by another subsidiary. They require a solution that allows the linking of intercompany purchase orders to sales orders and facilitates the flow between subsidiaries. The objective of this task is to analyze the client’s requirements, evaluate the standard intercompany functionality in NetSuite, and propose a solution that meets the client’s needs.
Solution
NetSuite Oneworld enables us to manage intercompany transactions and automatically generate elimination journal entries. The intercompany feature involves the following activities:
- Enable and setup the preferences related to the intercompany management.
- Setup Intercompany entities, chart of accounts and inventory items.
- Create intercompany purchase orders per subsidiary, as needed.
- Generate intercompany sales orders from intercompany purchase orders.
- Manage intercompany inventory transfers.
- Enter advanced intercompany journal entries for other intercompany transactions.
- Reconcile intercompany transactions.
- Run Intercompany Elimination from the Period Close Checklist.
- View the Intercompany Elimination report.
- User Training for Intercompany process in NetSuite (If required).
Assumptions
- A NetSuite OneWorld account with a feature to handle multiple currencies and subsidiaries is essential for intercompany processes.
- Update the existing chart of accounts or create a new chart of accounts to handle intercompany transactions.
- NetSuite allows us to create intercompany entities automatically or manually.
Risks
- The Intercompany feature cannot be disabled after it is enabled. This is true even if we have not created any intercompany entities or transactions.
Estimated Time
14 Hours