Intercompany Cross Charges
When you enable the Intercompany Framework feature, NetSuite lets you generate intercompany cross charges throughout the accounting period and at period end close. The cross charge functionality generates cross charges between subsidiaries that provided business services to each other. For example, when one subsidiary creates a sales order and another subsidiary fulfills the order. The cross charge pair are automatically approved as read-only intercompany transactions. NetSuite generates one transaction for the selling subsidiary, and one for the buying subsidiary. These cross charges create open intercompany payable and receivable balances, and appear in the trading currency specified on the Intercompany Preferences page. You can settle mutual open intercompany balances with intercompany netting. For information about intercompany netting, see Intercompany Netting.
To generate cross charges throughout the accounting period, go to Transactions > Financial > Manage Intercompany Cross Charges (Administrator).
Newly enabled feature menu items are not automatically added to custom centers. You must manually add menu items to custom centers after a feature is enabled.
To generate cross charges at period end close, use the Generate Intercompany Cross Charges task on the Period Close Checklist.
You must set intercompany preferences before you can generate cross charges. For more information, see Intercompany Preferences.
Related Topics:
- Generating Cross Charges From the Transactions Subtab
- Generating Cross Charges From the Period Close Checklist
- Best Practices for Paying Intercompany Cross Charges
- Financial Reports That Display Cross Charges
- Best Practices for Using the Intercompany Framework Feature
- Requirements for the Intercompany Framework Feature