Intercompany Reconciliation Report

Use the Intercompany Reconciliation report to identify unmatched or incorrectly matched intercompany transactions. This includes intercompany transactions that have not been paired with a corresponding transaction in another subsidiary, and paired transactions that have different amounts or currencies. To produce this report, NetSuite scans all transactions submitted for intercompany customers and vendors including:

If you use the Multi-Book Accounting feature, you can run the Intercompany Reconciliation report for any accounting book enabled for consolidation.

The Automated Intercompany Management feature automatically generates intercompany elimination journal entries during the period close process. If you use this feature, the intercompany journal form includes an Eliminate box to identify lines to be eliminated. For more information, see Automated Intercompany Management Overview.

Before you run elimination for the period, run this report as part of your period end process to identify any problems associated with intercompany transactions. You can then correct the discrepancies to synchronize sales and billing information across subsidiaries before you run intercompany elimination. You can also drill down from the report to edit the source sales and billing transactions, as needed.

Best practices is to run the report periodically to catch problems with transactions before the month end process.

Important:

Run the Intercompany Reconciliation report before you run intercompany elimination. Set the filter for the report for the dates or period you are about to close. Review the transactions listed in each section of the report and determine if you need to make any corrections before running elimination. You can drill down to view the transaction records from the report.

The Intercompany Reconciliation report has five sections and lists the mismatched intercompany transactions for:

  1. Unlinked Orders and Returns - intercompany transactions not paired with a corresponding intercompany transaction in another subsidiary

    This section includes purchase orders, sales orders, return authorizations and vendor return authorizations.

  2. Mismatched Amount - paired intercompany transactions with amounts that do not match

    This section includes purchase orders, sales orders, return authorizations, and vendor return authorizations.

  3. Mismatched Inventory Item Quantities - paired intercompany transactions with item quantities that do not match

    This section includes only item quantities that do not match. Item rates on paired intercompany inventory orders are always the same.

    The Inventory Item Quantity columns identify the differences in quantities per item for the following:

    • Item Fulfillment and Sales Invoice - the item quantity fulfilled on a sales order is different from the quantity billed on the sales invoice

      NetSuite creates the sales invoice from the sales order.

    • Item Receipt and Vendor Bill - the item quantity received on a purchase order is different from the quantity on the vendor bill

      NetSuite creates the vendor bill from the purchase order.

    • Item Receipt and Item Fulfillment - the item quantity fulfilled on a sales order is different from the quantity received for the paired purchase order

    Note:

    The Inventory Item: Display Name column displays the Item's Display Name for any item that appears in the Mismatched Inventory Item Quantities section. If the Item's Display Name is blank, the column does not display anything.

  4. Mismatched Billing - paired intercompany transactions with billed amounts that do not match

    The amount billed (vendor bill) for the purchase order does not match the amount billed (invoice) for a sales order.

  5. Standalone Transactions - billing and payment transactions that are not associated with a sales order or purchase order

    This section includes vendor bills, invoices, credit memos, vendor credits, customer payments, and vendor payments.

To view the Intercompany Reconciliation Report:

Go to Reports > Financial > Intercompany Reconciliation.

The following filters are available in the report footer:

A message appears indicating that your report is loading. The status bar in the footer of the report indicates the progress as your report loads. You can click Cancel Report next to the status bar to stop the report from loading.

The Intercompany Reconciliation report displays the following columns:

Additional Topics

Related Topics

General Notices