How to Use Shared Transactions in NetSuite 2 - Intercompany Setup

Welcome to part two of the shared transaction setup. Now that we've completed the steps required for the download, we're going to next speak and review how to do the intercompany setup. And that really is here we have. We want to configure the intercompany settings, we want to configure the subsidiary settings, configure the account settings and then go ahead and test an advanced intercompany journal just to make sure that we're doing it correctly. If you'll recall, we had just briefly talked about the Enable features where we set up the intercompany framework and we set up the multi subsidiary customer. Now what we want to do is come over here to accounting and there is a setup here called Intercompany Preferences ahead and select on that. And this is where we come in and we identify a few of the things for the NetSuite auto balancing. Okay. See here I've got my default intercompany accounts, the 1130 and 210. Those can be any number you want, but we want to be sure to set those up for what we have. Okay. Likewise these income and expense accounts can be whatever you'd like there. The trade currency can be set to anyone. That's most likely US dollar. The cross char output type, if you're using some other features isn't really important here, but I would tend to use for what we do. But you can set that. And then of course if you do want to use the netting, you can turn if you want to allow the per line classifications. I've not turned that on. Okay. The second piece that is important is when you use intercompany framework, the customer vendor relationship that NetSuite uses to do the intercompany eliminations and management is done with these representing entities. I like to generate Click Check to do these automatically and then I just out of habit I put IC in front of it and you'll see what that likes. Go ahead and save those intercompany preferences. And then from there we want to go to step two which is to configure our subsidiary settings. Alright, to do that I'll go to here company and then I want to come to subsidiaries. I'll go ahead and click on that. And this is a new button you can see that is generate representing subsidiaries. Okay, If I want to go ahead and click on that it will generate these here that are the representing customer and the representing vendor. You see that IC that's in front of that and that becomes the one representing entity. That you can use for AP and ar. If I didn't want to generate these automatically, I would need to hit that button. The other place where this can be done is in the Subsidiary Settings Manager and this is a new field. When you enable the framework and you see that this will tell me where are they enabled, what are my settings, and then I can actually come in here and let's say I go to United States. Clicking on the gear there will take me to the Subsidiary Settings page. That should look very familiar. Here's my Where I can set any defaults I want for the intercompany framework when those come through and then anything else that might be necessary. The last part that we have is called Configure Account Settings. Okay. When you come in and you do that by lists accounting accounts, right. When I set this up, I want to make sure that I've identified and configured my accounts correctly. Alright, so let's go ahead and just open up a one here that we'll use for intercompany receivables at 11:30. Let me view that and what you'll see here that's really important is really controlling this piece here. It's called Eliminate Intercompany Transactions. When this box is checked, that means that netsuite is going to assume that any intercompany, any transactions in there that represent an intercompany you want eliminated. And then at the end of the month it will create an elimination journal entry to back that out. Why is this important? It's because when we're doing shared transactions, sometimes we might want to eliminate something like, let's say we have done that, but quite a few times. When we're using shared transactions, what we're really doing is we want to move an expense, say like a phone expense from one subsidiary and we want to put that expense in another subsidiary. So it's a permanent movement of cost. And in that case we do not want to eliminate that, we want that to be a permanent transaction. In that case, we would not want this box to be checked, we would want it unchecked. So as you're setting up your accounts, think through what ones you would like to have eliminated and what ones you would not. Many customers will use a series of intercompany revenue or expense accounts. As you can see here, I've got an intercompany revenue that's tagged, whereas these are not. These would represent permanent movements. Again, it's how you want to design it, but these are the elements necessary to do a transaction. From there what we want to do is let's do a test. Now we're going to go to Transactions Financial and I want to make an advanced intercompany journal. And what makes this really fantastic is that it allows us to do it through numerous subsidiaries. And we're also able to do this with a bunch of different currencies or anything else we might want. If you look here, what I set up, I'll just come in here and open it. Is I made the journal here between Canada and the United States. Very simple. This happens. All four of these happen to be eliminating. Mainly because we selected the eliminating ones here. If I wanted to run a quick test on my own. Let's go ahead and make a new journal and we'll start out. This will come from the United States. We're gonna do the US dollar here in the United States. Let's just do the expense. We'll send it to. Our favorite is miscellaneous expense. And I'm going to credit that for $10,000 because I don't want this expense. Then I go to Canada and we'll do this with the exact same one, 1690. And I'm moving this expense here for $10,000. So I've done two of the four entries and from here since I've set it up, I can actually select hit the auto balancing and this will add the additional lines for me. You see the intercompany receivables, intercompany payables. The eliminations came up and I also have the due to due from subsidiaries have also been set here. So I'm in good shape. And here is my currency with respect to the exchange rates on the journal. So my intercompany transaction advanced intercompany journal is working properly. Now we're ready to actually configure and set up the shared transactions and begin using the tool.