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June 10, 2026 | Question of the Week
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Tracking intercompany inventory sold to external customers

edited Jun 2, 2025 2:27PM in Ask A Guru 4 comments

Hi Gurus,

Is there a way intercompany inventory sold to customers can be tracked? Ie. Subsidiary 1 sold inventory to Subsidiary 2, and then Subsidiary 2 sold the inventory to 3rd party/external customers. There will also be inventory that will remain unsold, and therefore needs to be tracked as well vis-à-vis the sold inventory. The reason for this is because the inventories are intercompany-transferred at a mark-up, and the accounting treatment (elimination) for sold and unsold inventory mark-ups will be different.

There is an enhancement in Netsuite that says this is currently a limitation (answer ID 80908) which is also why intercompany cogs account should not be marked for elimination.

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