Creating Intercompany Accounts

You can create intercompany accounts by adding a new account or by modifying an existing account, when permitted. Before you create intercompany accounts, ensure that you understand the different types of accounts that can be used to record intercompany transactions. For more information, see Account Types and Intercompany Transactions.

You cannot create intercompany accounts for the following system-generated accounts:

• Unrealized Matching Gain/Loss

• Unrealized Gain/Loss

• Realized Gain/Loss

• Rounding Gain/Loss

• Exchange Rate Variance

• Cumulative Translation Adjustment-Elimination

• Cumulative Translation Adjustment

• Undeposited Funds

• Intercompany Clearing XXX (deferred Cost of Goods Sold (COGS))

For more information about features and system-generated accounts, see Feature-Specific, System-Generated Accounts.

At a minimum, to properly account for and eliminate intercompany transactions, you need the following accounts:

• Expense Account

• Income Account

• Receivables Account

• Payables Account

• Deferred Revenue Account

To add a new intercompany account:

1. Go to Setup > Accounting > Manage G/L > Chart of Accounts > New.

2. Select the type of account to create based on the account purpose.

   Note:

   NetSuite requires an intercompany customer or intercompany vendor for intercompany A/R and A/P accounts.

   The values for General Rate Type and Cash Flow Rate Type default based on the type of account selected.

3. Enter a name for the account.

4. Check the Eliminate Intercompany Transaction box.

5. Complete other fields, as needed.

6. For Subsidiaries, select the parent or top level subsidiary and then check Include All Children.

7. Click Save.

Making an Existing Intercompany Account an Elimination Account

Use the following procedure to change an intercompany account into an elimination account.

To make an existing intercompany account an intercompany elimination account:

1. Go to Setup > Accounting > Manage G/L > Chart of Accounts.

2. Click Edit next to the account you want to modify.

3. Check the Eliminate Intercompany Transactions box, and then click Save.

Related Topics:

Intercompany Accounts

Creating Intercompany Customers and Vendors

Intercompany Inventory Items Guidelines

Customizing Standard Journal Entries for Intercompany Elimination

Setting Up Automated Intercompany Management

General Notices