“In NetSuite, during the intercompany adjustment process (time reposting and intercompany adjustment), is it possible to generate only one journal entry per subsidiary instead of one per project? If yes, what are the risks of doing so, and what kind of customization would be needed to achieve this?”

AI generated answer (using internal Slack threads):

In NetSuite, during the intercompany adjustment process, it is technically possible to generate only one journal entry per subsidiary instead of one per project. However, this approach comes with certain risks and would require customization. The main risk is that it could potentially disrupt the balance of the general ledger for each subsidiary. NetSuite requires a balanced trial balance for each entity, and this is why it typically generates multiple lines per advanced intercompany journal entry. If you were to consolidate these into a single journal entry per subsidiary, it could make it more difficult to track the flow of funds between subsidiaries and could complicate the process of spinning off an entity at a later date. To achieve this, you would likely need to customize your NetSuite setup. This could involve configuring the Intercompany AP/AR accounts and setting them as the defaults under Accounting Preferences. You could then use the Auto Balance feature for NetSuite to make the offsetting posting for each entity. However, this would still require a debit and credit for each transaction, so it may not fully achieve your goal of having only one journal entry per subsidiary. It's also worth noting that if you're only separating subsidiaries to see separate P&Ls, you might consider using a class, department, or custom segment instead. These can provide separate financial reporting without the need for separate legal entities. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******