Intercompany Preferences

When an administrator enables the Intercompany Framework feature or the Automated Intercompany Management feature, NetSuite provides access to the Intercompany Preferences page. If you have the Setup Accounting permission, you can define intercompany preferences at Setup > Accounting > Preferences > Intercompany Preferences.

If you use the Intercompany Framework feature, the Intercompany Preferences page includes the following four subtabs.

• Accounting -This subtab enables you to define the default accounts for the Intercompany Framework and Automated Intercompany Management features. The Intercompany Framework feature uses the default accounts to generate cross charges. The Automated Intercompany Management feature uses the default accounts to record and post intercompany purchase and sale transactions across subsidiaries.

  Important:

  You must first set up intercompany elimination accounts before you can define default intercompany accounts. For more information, see Creating Intercompany Elimination Accounts.

  You can specify the currency and default exchange rate that your subsidiaries use when they do business with each other. You can also choose how to group the cross charges. You can define default cross charge classification preferences by subsidiary. Finally, if you check the Allow Per-Line Classification for Netting Settlement box, NetSuite classifies all netting settlements based on the netted transactions. These settings are not available if you use only the Automated Intercompany Management feature.

• Transfer Price Methods -This subtab does not appear if you use only the Automated Intercompany Management feature. This subtab enables you to define the markup percentage when one subsidiary fulfills an order or accepts a returned order for another subsidiary.

• Intercompany Entities -This subtab is for users who want NetSuite to create and maintain representing entities for the Automated Intercompany Management feature. There are prerequisites to use the Intercompany Entities subtab. Users of the Automated Intercompany Management feature must also enable the Multi Subsidiary Customer feature. In addition, if you use the Multiple Currencies feature, you must also enable the Multi-Currency Vendor and Multi-Currency Customer features. If you meet these prerequisites, NetSuite can generate and maintain representing entities for all of your non-elimination subsidiaries.

• System Notes -This subtab displays the definition of intercompany preferences, as well as any changes. It displays the date and time of the definition or any change, and the name of the user who saved the record.

General Notices