Elimination Subsidiaries

When subsidiaries transact, you may have to eliminate the revenue and expenses at the consolidated level to remove the effect of transactions between subsidiaries.

For example, intercompany transaction balances may require elimination for the following reasons:

You use elimination subsidiaries to post journal entries that balance consolidated books. These journal entries, called elimination journal entries, reverse the impact of the intercompany transactions. Each elimination journal entry posts to an elimination subsidiary.

Note:

Only journal entries post to elimination subsidiaries. No other transactions post to elimination subsidiaries. See Elimination Journal Entries.

You create an elimination subsidiary (as a child of the parent subsidiary) for any subsidiary that has child subsidiaries. Set the currency to the same currency as the base currency of the parent subsidiary.

The following illustration shows a sample subsidiary hierarchy that includes an elimination subsidiary.

Diagram of a sample subsidiary structure that includes an elimination subsidiary.

You create elimination subsidiaries the way you create other subsidiaries except that you check the Elimination box on the subsidiary record. For more information, see Creating Subsidiary Records.

License fees for subsidiaries do not include charges for elimination subsidiaries, and elimination subsidiaries do not count toward the maximum of 250 subsidiaries.

Note the following about elimination subsidiaries and transactions:

Related Topics

Subsidiary Hierarchy Planning
Multiple Currencies in OneWorld
Nexuses and Taxes in OneWorld
NetSuite Editions Overview
Subsidiaries in OneWorld

General Notices