Mastering NetSuite Intercompany Journal Entries: A Step-by-Step Guide

NetSuite intercompany journal entries are a specialized type of journal entry designed specifically for OneWorld accounts. These entries are used to post transactions between different subsidiaries. Unlike regular journal entries, which cannot be associated with more than one subsidiary, intercompany journal entries facilitate transactions between two subsidiaries. Therefore, when you need to record transactions involving multiple subsidiaries, you should use intercompany journal entries.

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The advanced version of intercompany journal entries is now available. This feature allows you to define multiple receiving subsidiaries, change the base currency to any currency configured in your system, and utilize the Auto Balance functionality.

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To create Inter Company journal entries, follow these steps:

1. Navigate to Transactions > Financials> Make Intercompany Journal Entries .

2. In the Classification section, choose the subsidiary that is initiating the ledger transaction. You need to select the subsidiary before you can accept or choose the currency.

The first line of this journal entry must be posted to the selected subsidiary.

3. In the Primary Information section, either accept the default number in the Entry No. field or enter a different number.

              Enter all the required information ,in the primary information section .

4. If you have enabled Departments, Classes, or both on the Company subtab of the Enable Features page, select the appropriate classification to associate with this journal entry.
5. On the Lines subtab, enter the detailed information for each journal line.
6. On the Communication subtab, you can attach files and notes to this transaction.
7. If the Multi-Book Accounting feature is enabled in your account, the Accounting Books subtab will appear. This subtab displays any secondary books along with their respective base currencies and exchange rates.
8. Click Save.

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For more information on NetSuite Intercompany Journal Entries set up a consultation with us today.

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