Intercompany Transaction Management
Please contact your sales or account representative to find out how to get the Full Multi-Book Accounting feature. The assistance of NetSuite Professional Services or a Multi-Book authorized partner is required to implement this feature. You should consider contacting NetSuite Professional Services or a Multi-Book authorized partner for assistance in setting up the Adjustment-Only Books feature, even though it is not required.
Multi-Book Accounting, including the Adjustment-Only Books feature, is available only in NetSuite OneWorld.
In 2014.1 NetSuite OneWorld introduced a new Intercompany Clearing account for payable and receivables. This account is of the type Other Current Asset. It is set at the parent level and includes all subsidiaries. It is not currency locked. This new clearing account is used in Multi-Book Accounting and other features such as Intercompany Time and Expense, for intercompany transactions. All currency-locked intercompany clearing accounts (the Intercompany Payable/Receivable accounts) that existed prior to 2014.1 are maintained as child accounts of the new clearing account for historical purposes. The Intercompany Clearing account is created when the first transaction requires it, rather than when a feature is enabled.
Month-end intercompany time and expense adjustments allocate the expense across subsidiaries. They use book-specific intercompany adjustment journal entries in the originating subsidiary’s base currency.
Intercompany elimination journal entries post to the primary or any secondary accounting book, providing global consolidation in any accounting book.
Intercompany sales and purchasing transactions are book-generic transactions.
Intercompany inventory transfer transactions may be arm’s length or not. Non-arm’s length transactions use the transfer order. If one of the two subsidiaries is not associated with a particular secondary accounting book, the posting to that subsidiary is skipped. For that book, only half of the general ledger impact is posted.
Arm’s length intercompany inventory transfers occur through the intercompany inventory sales or purchase workflow. If an intercompany inventory sales or purchase workflow exists in the primary book, Multi-Book Accounting assumes it is also intercompany in all secondary books. The item receipt for these transactions posts additional lines to debit inventory in-transit and credit intercompany clearing. The item fulfillment posts additional lines to credit inventory in-transit and debit intercompany clearing. If one of the subsidiaries does not exist in the secondary book, the additional intercompany lines are not posted in that subsidiary.