Scenario: The User gets 2 elimination journal entries for the same invoice or bill while running the intercompany elimination.
Answer:
In NetSuite, intercompany eliminations are typically performed in two stages:
- Intercompany matching, which matches intercompany transactions between subsidiaries.
- Intercompany elimination, which eliminates the matched intercompany transactions to avoid double-counting in consolidated financial statements.
During the intercompany elimination stage, two elimination journal entries may be created for an invoice.
The first elimination journal entry is created in the subsidiary where the invoice originated. This entry eliminates the revenue or expense associated with the intercompany transaction by debiting the intercompany revenue or expense account and crediting the intercompany receivable or payable account.
The second elimination journal entry is created in the subsidiary that received the invoice. This entry eliminates the intercompany receivable or payable by debiting the intercompany payable or receivable account and crediting the intercompany revenue or expense account.
By creating two elimination journal entries, the intercompany transactions are fully eliminated, ensuring that they are not double-counted in consolidated financial statements.