OneWorld multiple subsidiaries utlizing same item

Question

I'm implementing NetSuite with OneWorld currently for my company with multiple subsidiaries.  I've dealt with inventory some in past implementations and want to confirm I'm not miss thinking.

Subsidiary M purchases some items from Subsidiary A.  Subsidiary M and Subsidiary A have some of the same individual items utilized for manufacturing an item.

My plan is to setup the items utilized by both subsidiaries with:

* Subsidiary as Parent company and include children
* Vendors as all vendors and their prices for all subsidiaries
* Accounting tab as regular income and COGS accounts with Intercompany accounts

I have the Intercompany customers and vendors setup so when Subsidiary M purchases from Subsidiary A, NetSuite should grab the intercompany accounts for the transactions.

Does this sound correct for the setup?

I appreciate any advice :)

Clarisa De Torres-Oracle · Accepted Answer

Hi @MHS Crane, your setup seems correct!  Inventory items must be accessible by both subsidiaries involved with the transfer.  You can input your preferred accounts under the Accounting tab:

Please note as well that, for arm's length intercompany inventory transfer, do not mark the COGS account as Elimination.

For more information you can check out SAID 24140 Intercompany Inventory Transfers - Arm's Length.

Tagging some of our top contributors: @Wee Ming @MTL_MIA @Tigran Shahnazaryan @Angela Bayliss! Feel free to share your additional insights/tips in case you have any!

Hope this helps! :)

Angela Bayliss · Accepted Answer

https://community.oracle.com/netsuite/english/discussion/comment/16865065#Comment_16865065

Just the intercompany COGS account.

I see a lot of info on the intercompany accounts.  Note that all accounts for the items (Asset, Income, COGS, WIP, etc must be open to all subsidiaries you want to transact the item on.

They don't need to eliminate, but they must be available to the different subs in order to transact between the subs.

Good Luck, you're definitely on the right path!

~angela