Intercompany Framework

The Intercompany Framework feature includes a variety of components to help you manage your intercompany workflows. For example, this feature includes the cross charge generation functionality. Cross charge generation is a process that you can perform throughout the accounting period or at period end close. This process generates charges for subsidiaries that performed services for each other during the accounting period. For example, when you source and fulfill inventory items from different subsidiaries. When subsidiaries fulfill orders or accept returns on behalf of other subsidiaries, NetSuite creates open intercompany payable and receivable balances. NetSuite reconciles these balances when you generate cross charges.

The Intercompany Framework feature also includes the intercompany netting functionality. This functionality enables you to settle mutual intercompany open balances across subsidiaries, and then automatically generate intercompany settlements statements. When you use this functionality throughout the accounting period, you reduce the number of open intercompany transactions. Fewer open intercompany transactions means less manual effort spent reconciling, revaluing, and eliminating these balances. It also simplifies the period close process, and decreases the time spent on payment processing and bank reconciliation.

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General Notices