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Intercompany Netting Journal Entries | Clarification Question

edited Aug 21, 2025 8:52PM in Ask A Guru 3 comments

Hello -

Regarding the noted limitation for Intercompany Netting as follows :

  • Intercompany Journal Entries – There must be only one AP and AR line for each subsidiary-subsidiary-currency to ensure that the lines are nettable.

Does this mean that for each intercompany transaction, there must be 4 intercompany accounts transactions? So for example 2 for a United Kingdom subsidiary (AR and AP) and 2 for a US subsidiary (AR and AP)?

Reference : SA 94927 Intercompany Netting Limitations

Melissa

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