Intercompany Elimination Overview

When you enter intercompany transactions and advanced intercompany journal entries to record business activity between subsidiaries, the system identifies transaction lines that require elimination.

At the end of the accounting period, complete the tasks in your Period Close Checklist. The last task on the checklist is Eliminate Intercompany Transactions. You can complete this task only after completing the Revalue Open Foreign Currency Balances and Calculate Consolidated Balances tasks. You must complete these two tasks first to ensure that foreign currency adjustment amounts have been calculated for transactions in the period. See Using the Period Close Checklist.

When you run intercompany elimination, NetSuite creates elimination journal entries for all intercompany transaction journal lines that have the Elimination box checked. Adjustments that result from the difference in the foreign currency exchange rates post to the Cumulative Translation Adjustment-Elimination (CTA-E) account. These differences occur from the originating intercompany journal entry and the elimination journal entry. NetSuite also creates a reversing journal entry for all intercompany journal lines that post to Intercompany Receivables and Intercompany Payables. See Cumulative Translation Adjustment-Elimination (CTA-E).

If you use Multi-Book Accounting, you can run intercompany elimination on any accounting book.

Related Topics:

Key Points for Running Intercompany Elimination
Summarized Intercompany Elimination Journal Entries
Intercompany Elimination Example
Automated Intercompany Management Overview
Setting Up Automated Intercompany Management
Intercompany Sales and Billing Transactions Overview
Managing Intercompany Inventory Transfers - Arm's Length
Elimination Through the Automated Intercompany Management Feature
Working with Elimination Reports
Automated Intercompany Management

General Notices