We have subsidiaries that we are planning to import the historical month-end trial balances OR the historical transactions into NetSuite. We had consultants but we were not able to Go Live for those other subsidiaries from other countries due to some constraints. We will be doing it ourselves now. Regarding the intercompany transactions, we noticed that what was done in our historical TB for the subsidiaries who went live before was removing the intercompany AR, AP, income and expense accounts then recreating them as advanced intercompany JEs. The problem with that is we noticed that they are being consistently eliminated since they were not considered closed. All historical intercompany transactions were treated as independent - no applications of payments, hence, everything is treated as open or unpaid up to this date which isn't the case. Assuming we will be importing only the month-end balances, for historical intercompany transactions, should we still post ALL the individual intercompany transactions as intercompany JE, so that we can apply the payments when necessary and only those OPEN intercompany transactions will be automatically eliminated moving forward? What is the correct way to do this? Or how is this normally done? Thank you.

Wow, @Luis it is frankly a lot of work, and I am actually paid to do it right (or paid to fix the wrongs). not easy. think of uploading of finalized HTBs - they do not need eliminating…. You should not be doing ANYTHING to HTBs other than uploading them. These HTBs should your final/board approved/audited financials thus nothing else is required.

Thank you. But the finalized TB per subsidiary includes intercompany transactions. Why don't they need eliminating at consolidated level?

@Luis - becuase your HTB is already finalized, i.e. represents results after elimination has been completed

But individual subsidiary FS are still important though, aren't they?

but of course

So instead of me using NetSuite automatic creation of eliminating JEs for historical TBs, I'll just manually create/import them to the elimination subs? Is that right?

correct

Oh alright. Thank you. So I will not mark the Eliminate box? How about for the open intercompany balances as of cutoff date? Shouldn't they be marked as Eliminate?

no, they should be marked as Eliminate.

I tried it but my problem is: 1. I tried to include the intercompany AR/AP in the historical TBs (regular JEs) but I keep getting the error: "Elimination settings for the journal line, account and name do not match." Probably because the account type is AR and AP and I didn't check the Eliminate box (which is really my intention) and enter a Name. 2. Alternatively, I tried to replace the intercompany AR/AP in the historical TBs (regular JEs) with Opening Balances. I then tried to create an AICJE to transfer the Opening Balance values to the proper intercompany AR and AP but I got the same error because I'm not checking the Eliminate box and/or entering a Name. Will your process work if our account type is AR and AP? Thank you, @Karina.

Hi @Luis - yes, the process will work with AR and AP account types.

Hi @Karina, do you create separate AICJE for those intercompany ARs and APs? If so, do you populate the Name and Due To/From Subsidiary fields? Thank you. Sorry for bugging you. I think I'm so close to it.