The NetSuite integrated business management solution has so many features and capabilities, that it can be easy to overlook the benefits of the ERP’s basic functionality. If you are a current NetSuite user, this series of articles is designed to highlight some native features of the ERP solution. If your organization’s technology system does not offer these capabilities, we encourage you to contact the GYF ERP Solutions Team to learn more about NetSuite.
For companies that have more than one subsidiary, month-end intercompany eliminations are an imperative part of business operations. For companies on many legacy ERP systems, this process can be a tedious chore involving manual spreadsheets to consolidate data, and manual entries to close the books each month. NetSuite’s Intercompany Framework offers a robust solution that enables you to effectively manage multiple entities within one system by providing benefits, including:
- Automatic Elimination – As part of the month-end close process, NetSuite automatically eliminates all accounts that are marked for elimination, providing automatic consolidations. This process requires no manual intervention once transactions are entered, and increases month-end close efficiency.
- Process Controls – NetSuite requires intercompany entries to be balanced between entities, ensuring that if an entry is made to an intercompany account, it must be balanced between subsidiaries so that both parts of the intercompany transaction are entered.
- Arms-Length Transactions – NetSuite offers the flexibility to have arms-length intercompany transactions for situations where this is required. The system can automatically link intercompany purchase orders and sales orders for inventory transactions, and can also allow for arms-length intercompany inventory transfers.
- Cross-Charges and Netting – NetSuite allows for the generation of intercompany cross charges when necessary, as often required in situations where one subsidiary fulfills an order on behalf of another subsidiary. The system also allows the flexibility to net intercompany balances against each other for when two entities have transactions with each other, so that intercompany balances are not inflated.
NetSuite’s OneWorld solution streamlines mission critical processes and reduces IT costs, allowing you to manage a multitude of entities with a unified platform. Each NetSuite component is modular, enabling it to be deployed and integrated with existing investments as required to easily scale and future-proof your business with an agile platform that evolves as your needs change. Contact a GYF ERP Consultant at 412-338-9311 to maximize the return on your technology investment.
