how does NetSuite differentiate netting agreements between subsidiaries

AI generated answer (using internal Slack threads):

NetSuite differentiates netting agreements between subsidiaries through its advanced intercompany journal entries and the use of the Auto Balance feature. For each intercompany transaction, NetSuite requires four lines per advanced intercompany journal entry to ensure a balanced general ledger for each subsidiary. This is because each subsidiary is considered a separate legal entity with its own balance sheet, bank accounts, etc. When one subsidiary sends money to another, it essentially becomes indebted to the other. If the Intercompany AP/AR accounts are configured and set as the defaults under Accounting Preferences, the Auto Balance feature can be used for NetSuite to make the offsetting posting for each entity. This means you only need to show the Debit/Credit to Cash, and then select Auto Balance. NetSuite also supports Cross-Subsidiary Fulfillment, which allows for the fulfillment of two separate companies (different subsidiaries) out of a single warehouse. In the case of a company acquisition, the setup of purchase acquisition accounting in NetSuite would depend on the specific requirements of the new company. Subsidiaries are typically used if you need to eliminate part of a year's result or a split ownership or similar. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******