Setup advanced Intercompany Journal

Owned by Dennis van der Graaf (Unlicensed)
Last updated: Jan 03, 2022

This page explains how to set up the advanced intercompany journal posting

Eliminate Intercompany Transaction

Netsuite provides the option to automatically eliminate intercompany transactions. This option can be set on account settings. Currently the advanced intercompany journal feature doesn’t support the automatic elimination, so only accounts that do not have this option enable are able to work with this feature. If elimination is needed then this should be done manually.

General setup

For creating an advanced intercompany journal the journal posting needs a clearing account and these should be set up for each “From” and “To” subsidiary combination. The “From” subsidiary is always the subsidiary listed on the bank statement and the “To subsidiary” is the selected subsidiary to where you would like to post the funds. The system will only show to the end-user configurations that are applicable to the subsidiary in which they are performing the reconciliation.

Review the permissions

To be able to use the new intercompany journal posting feature the user role must be adjusted so it does include the customer record permission “Bank Statement IC Clearing Account”.

We recommend setting this for standard users to “View” and for managers or administrators to “full”.

Create a from/to subsidiary setup

To create a from/to subsidiary setup, navigate to SETUP->BANK RECONCILIATION->INTERCOMPANY CLEARING ACCOUNT->NEW. On the page that opens there are 4 settings:

  • From subsidiary (select here form which subsidiary the posting is initiated, this is the subsidiary listed on the bank statement)

  • To subsidiary (select here the subsidiary to where the posting could go)

  • Clearing account (select here the clearing account that should be used to clear the intercompany posting)

  • Inactive (when checked the rule is not taken into consideration)

Activate intercompany journal posting

The ability to create advanced intercompany journals is by default disabled and must be set for each bank account configuration separately. To activate this option navigate to SETUP->BANK RECONCILIATION->BANK ACCOUNT CONFIGURATION. Select a bank account configuration and press edit. Scroll to the bottom section and under preferences check the checkbox labeled “Enable Intercompany Journal Posting”. When enabled a new column will become visible that allows the user to select a subsidiary to.

 

Checklist - the following 3 steps are needed for full configuration of the feature:

  1. Adding a permission “Bank Statement IC Clearing Account”

  2. Check the preference “ENABLE INTERCOMPANY JOURNAL POSTING” in the Bank Account Configuration

  3. Configure the FROM/TO Subsidiary Setup & Clearing accounts

 

When fully configured, a new column will become visible that allows the user to select a value in the field “IC To Subsidiary”:

Using the intercompany posting

The intercompany posting can be used directly on the bank statement line or in the multi-line journal posting feature. In both cases, the user must first select the account to which they would like to post and then select the subsidiary in to “IC To Subsidiary” field to where the posting must be allocated. When both fields are populated the system will create automatically an advanced intercompany posting. When only an account is select the system will create a regular journal posting.

The field “IC To Subsidiary” will only show the created configurations that are related to the subsidiary from the bank statement. If a specific subsidiary is not present it means that a configuration should be created first.

Posting directly from a transaction line:

Posting through the multi-line journal feature