This is what Claude claims I am learning to option 1

Two Options to Avoid Elimination NetSuite eliminates a transaction only when both are true: 1. The transaction uses an intercompany customer/vendor 2. The accounts used are flagged "Eliminate Intercompany Transactions" Option 1 — Treat as Third Parties (Standard Customer/Vendor) Set up the other sub as a regular customer (on the seller) and a regular vendor (on the buyer). Use normal AR/AP and normal Income/COGS accounts. Pros • True arm's-length treatment • No elimination risk, ever • Standard workflows and reports work as-is • Flexible pricing, no IC config required Cons • Manual entry on both sides (no auto-pairing) • Reconciliation risk if amounts/dates don't match • No built-in IC reporting • Need to maintain the other sub as both a customer and vendor record • Tax setup needs care (resale certs, exemptions) Option 2 — Use Intercompany Features, but Uncheck "Eliminate" Use NetSuite's IC customer/vendor and IC transactions, but make sure the accounts used do not have the "Eliminate Intercompany Transactions" checkbox enabled. Pros • Auto-pairing of transactions across subs • Built-in IC reporting and filtering • Less manual entry, easier reconciliation • Future-proof if we ever want to consolidate later • IC AR/AP segregation if desired Cons • Requires IC preferences and IC customer/vendor setup • Fragile — depends on the "Eliminate" checkbox being correct on every account • Auditors may still treat balances as related-party • Locked into NetSuite's IC transaction rules • Currency/FX handling differs from manual approach

reports are always run against sub , so which option is better

Can you explain more why option 2 is better

We are trying to implement everyone's advice; however, if i set the vendor represents a subsidiary to the sub, then i can only access accounts that are set for elimination?