The quick answer
Create a balanced Advanced Intercompany Journal Entry with expense lines in the appropriate subsidiaries and reciprocal intercompany receivable and payable lines. Check the representing entities, Due To/From Subsidiary, and Eliminate flags on those reciprocal lines. After the period-close prerequisites, run Eliminate Intercompany Transactions, inspect the generated journal, and compare the consolidated Balance Sheet using the same period and subsidiary context.
The screenshots use sample data and fictional company and person names. The USD 720 transfer illustrates the checks; use your own account configuration and close controls.
Before you start
You need OneWorld, suitable intercompany accounts and representing entities, an elimination subsidiary, an open posting period, and a role that can create advanced intercompany journals and work with the period close. Confirm the expense account is available to both operating subsidiaries. In this example, Harbor Services paid USD 720 of advertising expense that belongs to Summit Operations.
01. Record the journal
Go to Transactions → Financial → Make Advanced Intercompany Journal Entries. Choose Harbor Services as the originating subsidiary, then set the date, period, and USD currency. Enter the first line for Harbor Services. The four lines are: credit Harbor's Advertising Expense 720; debit Harbor's Intercompany A/R 720; credit Summit's Intercompany A/P 720; debit Summit's Advertising Expense 720. Debits and credits should each total 1,440.
On the receivable line, choose the configured intercompany customer representing Summit and set Due To/From Subsidiary to Summit Operations. On the payable line, choose the configured intercompany vendor representing Harbor and set Due To/From Subsidiary to Harbor Services. Check Eliminate on those two reciprocal lines; NetSuite may default the flag from account setup. The expense lines are the reclassification. Confirm each subsidiary balances independently and check any required exchange-rate or classification fields before saving.
02. Check the saved source
Reopen the saved entry and check its period, four lines, balanced totals, representing entities, due-to/from values, and line-level elimination flags. Note the journal number. A saved journal establishes the operating-subsidiary balances; it does not mean the close task has eliminated them.
03. Run elimination in the period close
Open Setup → Accounting → Manage Accounting Periods, choose the same period, and open its Period Close Checklist. Complete the preceding tasks required in your account, including currency revaluation and consolidated-balance calculation where applicable. Run Eliminate Intercompany Transactions and check its process status until it is Complete. Follow the result to the generated journal and confirm its period and elimination subsidiary. A submitted process alone is not proof of a posted elimination.
04. Check the consolidated balance
Open Reports → Financial → Balance Sheet for the same period. Compare the operating subsidiaries and the consolidated parent, including the elimination subsidiary where available and accessible. The original receivable and payable remain in their subsidiaries; matching eligible internal balances should be removed or reduced in consolidation. This single-currency sample nets to zero. If yours does not, check report filters, unmatched amounts, eligibility flags, account setup, and currency translation before changing the source journal.
Common questions
Which lines are eliminated?
In this example, the intercompany A/R and A/P lines are flagged for elimination, sometimes automatically from account setup. Check the line settings and representing entities; the advertising expense lines move the cost between subsidiaries.
Why do the subsidiary balances remain?
The elimination journal posts in an elimination subsidiary for consolidation. It does not rewrite the operating subsidiaries' source journal, so their standalone reports still show those balances.
Why might the consolidated balance not net to zero?
Check for unmatched or ineligible lines, the correct elimination subsidiary in the report, and completed close tasks. Currency translation or revaluation can also leave a residual or produce a CTA-E adjustment.