Intercompany Elimination

Elimination of P&L account in Adjustment Period

According to standard NetSuite process, the P&L accounts in the adjustment period will not be considered when executing the intercompany elimination of the base period. #553390 Intercompany Transaction posted on Adjustment Period > Run the Eliminate Intercompany Transactions task in a Non-adjustment Period > Transaction Not Eliminated. This enhancement offers the solution of Creating manual… Continue reading Elimination of P&L account in Adjustment Period

COGS account is not marked for Elimination

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… Continue reading COGS account is not marked for Elimination

Eliminate checkbox error was shown in normal JE on selecting intercompany receivable account while same was not shown in intercompany current account.

By standard, on selection of intercompany GL account in advanced intercompany JE, the eliminate checkbox is automatically checked. However, in the case of normal JE, we need to manually check the eliminate checkbox. In normal JE, we can save the transaction without eliminating for the intercompany current account as the account type is other current… Continue reading Eliminate checkbox error was shown in normal JE on selecting intercompany receivable account while same was not shown in intercompany current account.

Resolve error: “The Location XXX is not available in the elimination subsidiary XXX required to run intercompany elimination. Please change the location record to include the elimination subsidiary.”

This happens when the Location is set to mandatory on transaction. To resolve the error, make sure Location value is supplied and available to Elimination Subsidiary. User may create a Location via the following steps: Navigate to Setup > Company > Locations > New Name: Enter Name Subsidiary: Choose Elimination Subsidiary Click Save OR Navigate to Setup > Accounting > Accounting Preferences Unmark Make Locations Mandatory Click Save

AUTOMATIC ELIMINATION: The Automated Intercompany Management feature manages intercompany transactions and generates elimination journal entries automatically Reducing: – Need to manually create, track, and eliminate intercompany transactions – Manual steps required to manage and report intercompany activity. NetSuite generates the elimination journal entries based on the intercompany transaction lines and intercompany journal lines marked to be eliminated.… Continue reading Intercompany Elimination

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… Continue reading Running Intercompany Elimination

Creation of Elimination Subsidiaries

You create elimination subsidiaries the way you create other subsidiaries except that you check the Elimination box on the subsidiary record. You can create an elimination subsidiary (as a child of the parent subsidiary) for any subsidiary that has child subsidiaries. Set the currency to the same currency as the base currency of the… Continue reading Creation of Elimination Subsidiaries

Intercompany Transactions and Consolidation

When you enter intercompany transactions and advanced intercompany journal entries to record business activity between subsidiaries, the system identifies transaction lines that require elimination. Intercompany sales and billing transaction lines are identified by default, based on the intercompany account with which the line is associated. An intercompany sales order is a nonposting transaction, a… Continue reading Intercompany Transactions and Consolidation

Saved Search to Display Accounts with Eliminate Intercompany Transactions=True

Create a Saved Search to Display Accounts with ‘Eliminate Intercompany Transactions’ box = True Navigate to Lists > Search > Saved Searches > New Click Account On the Criteria tab > Standard subtab, set the following filters: – System Notes Fields > Field = Eliminate – System Notes: New Value = T Rename the Custom Account Search Click Save or Save & Run. Note: The search will only return those… Continue reading Saved Search to Display Accounts with Eliminate Intercompany Transactions=True

Important points to consider before running Intercompany Elimination

points to consider while running intercompany elimination in NetSuite: Ensure that all intercompany transactions have been properly recorded and matched before running the elimination process. This includes making sure that all transactions are properly classified as intercompany and that the correct intercompany accounts have been used. Make sure that the elimination process is performed in… Continue reading Important points to consider before running Intercompany Elimination