Automating Intercompany Transactions in NetSuite

Posted on: May 25, 2025 | By: Page Wildridge | NetSuite

Automating intercompany transactions in NetSuite is a game-changer for finance teams managing multi-entity operations. With NetSuite OneWorld, businesses can streamline intercompany sales, purchases, journal entries, and eliminations—reducing manual effort, improving accuracy, and accelerating period close cycles.

Why Automate Intercompany Transactions? 

Manual intercompany processes are time-consuming and prone to errors. These processes often involve duplicate data entry, inconsistent records across subsidiaries, and tedious reconciliations. Now, your business can utilize NetSuite’s Automated Intercompany Management feature. Above all, the software addresses these challenges by auto-generating elimination journal entries during period close. Additionally, you can manage intercompany transfers with built-in controls. Automation not only ensures compliance with accounting standards but also enhances operational efficiency.

Key Features of NetSuite’s Automated Intercompany Management 

1. Automated Elimination Entries

NetSuite identifies intercompany transactions marked for elimination and automatically generates the necessary journal entries. This process eliminates artificial profit and loss amounts, ensuring accurate consolidated financial statements. 

2. Intercompany Sales and Purchases 

The system allows for the creation of intercompany purchase orders, which automatically generate corresponding sales orders in the related subsidiary. Most importantly, synchronization ensures that both sides of the transaction are accurately recorded, reducing discrepancies. 

3. Intercompany Inventory Transfers 

NetSuite supports intercompany inventory transfers by managing the movement of goods between subsidiaries. The system ensures that inventory levels are updated appropriately, and any associated costs are accurately recorded. Additionally, you can utilize the auto-elimination tool to calculate your Cost of Goods Sold and period-end inventory balance. 

Next Steps 

Logan Consulting is committed to ensuring that our clients get the most out of their ERPs. Contact us today to learn more about NetSuite and what it can do for your business. 

---

---