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 – Elimination (CTA-E) account.

When you run elimination, NetSuite posts elimination journal entries. You can run intercompany elimination for a period multiple times, as needed. NetSuite does not support running multiple intercompany elimination process at the same time.

To run intercompany elimination:

  1. From the Period Close Checklist, click the Eliminate Intercompany Transactions icon.

  2. Verify the Period is correct.

  3. Click Run Intercompany Elimination.

    Select a class, department, and location, if used. Optionally, add a memo.

    If you use Automated Intercompany Management and Multi-Location Inventory features, and the Make Location Mandatory accounting preference, note the following. You must assign a default elimination location to each elimination subsidiary. Then, on the Task: Eliminate Intercompany Transactions page, select the elimination subsidiary from the Location list. The default value is the Default Elimination Subsidiary Location. NetSuite assigns the elimination subsidiary to each intercompany elimination journal entry generated through completing this task.

    If you use Multi-Book Accounting, the read-only Accounting Book field displays the accounting book for which you are running intercompany transaction elimination.

  4. Click Save to run intercompany elimination and post the elimination journal entries for the period.

    Note:

    If there is an amount not eliminated due to a currency delta, make a manual journal entry to eliminate the amount.

Important:

Do not close the accounting period while the intercompany transaction elimination process is still running. The process may take time depending on the number of transactions to be eliminated. You can check the Status subtab on the Task: Eliminate Intercompany Transactions page. When the status says Complete, you can click Back to Period Close to return to the task page and close the accounting period.

You can find more details about the elimination process you initiated by viewing the following subtabs on the Task: Eliminate Intercompany Transactions page:

Related Topics:

Enter Intercompany Transactions for Elimination
Elimination Through the Automated Intercompany Management Feature

General Notices