Do you create a manual JE at the end of each month...
# accountinga
Al
06/21/2019, 4:34 PMDo you create a manual JE at the end of each month to reclassify the balance from inventory account to expense?
o
Olivier Gagnon (DXC)
06/21/2019, 5:18 PM@Al what is your goal? One sub with inventory and the other without does not explain the interco charge relationship you have in mind. What GL impact are you trying to pass between the two?
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Al
06/21/2019, 5:20 PMselling subsidiary GL impact for fulfillment is dr. COGS cr. Inventory (working as expected)
Al
06/21/2019, 5:21 PMbuying subsidiary GL impact for receipt is dr. Inventory cr. Accrued Purchases (debit should be to expenses as buying subdiary doesnt carry inventory)
Al
06/21/2019, 5:21 PM@Olivier Gagnon (DXC) hope that makes sense
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Olivier Gagnon (DXC)
06/21/2019, 5:23 PMSo Sub B buys inventory, but Sub A sells it
Olivier Gagnon (DXC)
06/21/2019, 5:24 PMhow does the inventory get from Sub B to Sub A?
Olivier Gagnon (DXC)
06/21/2019, 5:24 PMWhat you're trying to do isn't supported by NetSuite. NS enforces a strict arms-lenght relationshi^p
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Olivier Gagnon (DXC)
06/21/2019, 5:25 PMSub B can't buy things and they magically appear as Sub A's stock
Olivier Gagnon (DXC)
06/21/2019, 5:25 PMIn your scenario, you must perform a standard purchase in Sub B. You must then perform an interco transfer to Sub A
Olivier Gagnon (DXC)
06/21/2019, 5:25 PMSub A can then sell the goods
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Al
06/21/2019, 5:32 PMWe are already processing them as intercompany PO-SO
Al
06/21/2019, 5:33 PMthe issue is that the selling subsidiary carries inventory
Al
06/21/2019, 5:33 PMwhile the buying subsidiary doesn't
Al
06/21/2019, 5:33 PMOn the Item Receipt (buying subsidiary side), the Inventory account is debited, which shouldn't be since it doesnt carry inventory
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KevinJ of Kansas
06/21/2019, 5:34 PMI wouldn't try to use standard interco PO-SO process for that then. I'd have SubA with inventory item and Sub B with non inventory - and then do some kind of manual process for handling creation of the SO from the PO/vice versa
KevinJ of Kansas
06/21/2019, 5:34 PMOf course- that comes with a whole host of other risks.
KevinJ of Kansas
06/21/2019, 5:35 PMDefinitely something that would require more conversation and thought than a chat over slack.
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ABJ
06/23/2019, 5:55 PMCheck Interco Drop Ship
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KevinJ of Kansas
06/24/2019, 9:54 AMCould you just do an inventory adjustment out to whatever expense account you want it in?
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