Prior to becoming a consultant at MIBAR, I worked for a company that had 22 subsidiaries and 69 locations. As an accountant I had to do intercompany journal entries or supervise my staff as they created them and then reconcile the balances between the subsidiaries at month end. This could be very frustrating at times because inadvertently someone would forget to do an entry on one of the subsidiaries or choose the wrong due to/due from account. This feature would have made my reconciliations so much easier as it auto balances the journal entry between subsidiaries!
Advanced Intercompany journal entries are used in a NetSuite One World environment when you need to adjust the balances of general ledger accounts between subsidiaries and you are not using transactions like invoices or vendor bills. Previously, you would select the originating subsidiary and the receiving subsidiary, but now you select the originating subsidiary and you can have multiple receiving subsidiaries. The currency defaults to the base currency for the originating subsidiary but can be changed to any currency that is in your environment. The first line of the journal entry always starts with the originating subsidiary and after that they can be to any of the other receiving subsidiaries. The net amount of the debits and credits from the originating subsidiary must equal the net amount of the debits and credits of the other subsidiaries combined.
To make an advanced intercompany journal entry go to Transactions > Financial > Advanced Intercompany Journal Entries.
In the classification section choose the originating subsidiary and then review the currency. It will default to the base currency of the originating subsidiary but you may select any currency that is used in your subsidiaries. Next, you would go to the line level and start entering your journal entry. The first line needs to begin with the originating subsidiary but after that you may use the receiving subsidiaries. The line level will also show the amount in the that subsidiary’s currency.
If you use the Automated Intercompany Management feature you have the option of clicking on the auto balance button and that will automatically add the elimination lines to balance your journal entry.
To enable the auto balancing button go to Accounting > Accounting Preferences > Items/Transactions. Set your preferences for Default ICJE auto balance receivables and Default ICJE auto balance payables accounts.