NetSuite OneWorld Intercompany Transactions - Best Practice Advice
This Help & Advice topic has been created by one of our in-house Solution Consultant's. This article has been written to help existing NetSuite OneWorld customers follow best practice when it comes to processing NetSuite OneWorld Intercompany Transactions. Hopefully you'll pick up a few tips along the way. Check out our step by step video that walks you through the different transactions.
What is OneWorld?
If you're new to NetSuite or haven't yet considered OneWorld for your business, it might be helpful to explain what OneWorld is all about.
OneWorld is NetSuite's extremely powerful module that enables the management of multiple subsidiaries, business units and legal entities in real-time. Multi-lingual, multi-jurisdiction compliance and multi-currency are all standard features of the system. And the really nice bit is that it delivers real-time global business insights and not just at GL level.
This article covers NetSuite OneWorld Intercompany Transactions and in particular:
Purchase Orders and Sales Orders
Advanced Intercompany Journals
Intercompany Transfer Orders
1. Intercompany Purchase and Sales Orders
Go to Transactions –> Purchases –> Enter Purchase Orders
Tip: Sales/Purchase transactions between subsidiaries should always begin with a Purchase Order.
In this example, we are using an Irish Subsidiary to create a PO to the Netherlands Subsidiary
Select the NL Vendor within the Irish Subsidiary, add some items to the PO and select the location where the items will be received into. In this case, we have selected Dublin.
Fill in any other details required on your PO and then Save
Next, Create the Sales Order within the NL Subsidiary
Go to Transactions -> Sales -> Manage Intercompany Sales Orders
Select the Customer (in our example we are using OSSM Ireland)
Now we can covert the PO into a Sales Order, which will save you time by not having to re-enter the Sales Order details again.
Select the relevant PO and click Generate Sales Order
It may take a few moments to run. You can click on Refresh also.
If there are any issues with the transactions, you will see an error message below with the details
Once completed, you will see the PO and the corresponding Sales Order
If you click on the Sales Order, you will land on the Sales Order itself and you will see that it was created for the Irish entity but within the Netherlands Subsidiary.
You can also see the Intercompany Status is Paired, which means this Sales Order is paired with an Intercompany Purchase Order. And if you need to view the Purchase Order from the Sales Order screen, just click on the Hyperlink.
You will see similar details on the Purchase Order (Paired Status and Hyperlink to the Corresponding Sales Order)
Tip: This may seem obvious, but just to remind you that the Sales Order must be fulfilled before you can process the Purchase Order
2. Advanced Intercompany Journals
You should use this option to create journal/payment transactions between subsidiaries.
Go to Transactions -> Financial -> Make Advanced Intercompany Journal Entries
Choose the Subsidiary that is initiating the transaction (in this case, we have selected the Irish entity)
We are using the example that the Netherlands is paying Ireland for the Goods Supplied
Choose Intercompany Receivables Account within the Irish Subsidiary. Enter the value of the payment into the Credit field.
In the Name Column, we just select the Netherlands Subsidiary
The second line of the transaction is the bank line
Choose the Ireland Bank Account, Enter the Debit Amount
The third line, enter the Netherlands, debit the Intercompany Accounts Payable
And in the Name Column, select the Irish Subsidiary
Finally, select the Netherlands Bank Account, and enter the credit amount.
If you scroll across the screen, you will see that these transactions are set to Eliminate
3. Advanced Intercompany Transfer Orders
This is used to transfer items/inventory from one subsidiary to another
Go to Transactions -> Inventory -> Enter Intercompany Transfer Orders
Select the Subsidiary that the Item is coming out from and the subsidiary where you want transfer to along with the locations you wish to transfer from and to (in this example we are transferring from the Dublin Warehouse to the Amsterdam Warehouse.
Enter your Item(s) and you can input or change your transfer price (if already set up against the item).
If you then click on the Item hyperlink and go to Related Records, we can see the transfer order (in and out) against the item.
Watch our Step by Step Video here:
About the author: Brian Doherty
Brian works in our NetSuite Project Management and Consultancy Teams and brings over twenty four years' experience successfully leading ERP projects across the Distribution and Services sectors.