In the previous articles, we discussed how elimination journal entries in NetSuite can be created manually (New to NetSuite | Manual Creation of Elimination Journal Entries) and automatically (New to NetSuite | Automating Intercompany Elimination in NetSuite) through Automated Intercompany Management. In this article, we will focus on summarizing Intercompany Elimination Journal Entries and how NetSuite organizes elimination entries during the consolidation process.
NetSuite provides the Journal Entry Summarization on Intercompany Elimination accounting preference, which groups similar elimination journal entries into a single summarized line. If the preference is disabled, each elimination journal entry appears on its own line.
For Accounts Payable, Accounts Receivable, Equity, and Income Statement accounts, entries are grouped when they share the same:
- Elimination subsidiary
- Elimination period
- Accounting book
- Class, Department, Location, and Custom Segment combinations
- General ledger account
Other balance sheet accounts, such as Other Asset and Other Current Liability accounts, are always summarized regardless of the preference setting.
When summarization is enabled, users can review grouped transactions through the Source Transactions column on the journal entry record.
To enable the preference:
1. Go to the Accounting Preferences page.
- NetSuite: Navigate to Setup > Accounting > Accounting Preferences.
- NetSuite Next: Click Explore (hamburger icon in the bottom left corner beside the home button). In the menu, go to Setup > Accounting > Accounting Preferences.
NetSuite:
NetSuite Next:
2. Tick the checkbox beside Use Journal Entry Summarization on Intercompany Elimination.
3. Click Save.
The Journal Entry Summarization on Intercompany Elimination preference helps simplify the review of elimination journal entries by grouping similar transactions into summarized lines while still allowing users to view source transaction details when needed.
Make sure to follow the New to NetSuite > Advanced Accounting & OneWorld category to stay updated on best practices and new features
