NetLoan - NetSuite Intercompany Setup for Intercompany Loans
Overview
Intercompany loans in NetLoan post both sides of a loan between two subsidiaries — the lender's note receivable and the borrower's loan liability — from a single loan record. Before this entity type can be used, several native NetSuite intercompany features must be enabled and configured. This article walks through that NetSuite-side configuration and explains how NetLoan relies on each piece. This is one-time setup, typically completed during implementation before the first intercompany loan is commenced.
Prerequisites
- NetSuite OneWorld with at least two subsidiaries
- Administrator access to Setup > Company > Enable Features and Setup > Accounting > Intercompany Preferences
- NetLoan installed (any edition)
- If the lending and borrowing subsidiaries have different base currencies, the Multiple Currencies feature is also required (covered below)
Setup Options
Navigation
- NetSuite features:Setup > Company > Enable Features
- Intercompany preferences:Setup > Accounting > Intercompany Preferences
- NetLoan global setting:NetLoan > NetLoan Setup > Global Settings
Enable Features - Company Tab
| Field Name | Field Type | Description | Dependencies | Options / Example | Field ID |
|---|---|---|---|---|---|
| Multi Subsidiary Customers | Checkbox | Allows customers and vendors to be assigned to multiple subsidiaries. Prerequisite for representing customers/vendors. | None | Checked | [unknown] |
| Multiple Currencies | Checkbox | Allows entities to transact in more than one currency. Required only when the lending and borrowing subsidiaries have different base currencies — without it, entities are limited to the company base currency and intercompany setup across currencies will not work. | None | Checked | [unknown] |
Enable Features - Accounting Tab
| Field Name | Field Type | Description | Dependencies | Options / Example | Field ID |
|---|---|---|---|---|---|
| Automated Intercompany Management | Checkbox | Core requirement. Enables intercompany customers/vendors (an entity is intercompany when its Represents Subsidiary field is set), exposes the Eliminate Intercompany Transactions checkbox on account records, enables automated elimination journals, and allows intercompany transaction pairing for reporting and reconciliation. | Requires an elimination subsidiary (set up via accounting preferences) for auto-balancing. | Checked | [unknown] |
Notes on Automated Intercompany Management:
- Intercompany customers/vendors marked as representing a subsidiary are required to use accounts marked for elimination.
- When creating representing entities manually, create the customer and vendor from one record or the other so they share the same entity (the auto-generate preference below does this for you).
- Accounts using this feature prior to NetSuite 2020.2 with custom customer/vendor forms must add the representing customer/vendor field to those forms.
Intercompany Preferences - Representing Entities Tab
| Field Name | Field Type | Description | Dependencies | Options / Example | Field ID |
|---|---|---|---|---|---|
| Automatically Generate Representing Entities | Checkbox | Has NetSuite auto-create representing customers and vendors for all subsidiaries and display them on the subsidiary record. Not required, but the easiest way to set them up without mistakes. | Multi Subsidiary Customers and Automated Intercompany Management must be enabled first; Multiple Currencies only when multiple currencies are involved. | Checked | [unknown] |
Side note: the Intercompany Framework feature (Intercompany Cross Charge, Intercompany Netting) is separate NetSuite functionality for cross-subsidiary charges and netting open intercompany balances. It is not required for NetLoan intercompany loans.
How NetLoan Relies on This Configuration
| Field Name | Field Type | Description | Dependencies | Options / Example | Field ID |
|---|---|---|---|---|---|
| Entity Type (Loan Type) | List/Record | Set to Intercompany to designate loans of this type as subsidiary-to-subsidiary. Drives intercompany validations and journal behavior. | None | Intercompany | custrecord_da_type_entity |
| Intercompany Borrowing Subsidiary | List/Record | The subsidiary receiving the loan. Required on every intercompany loan — NetLoan blocks processing without it, and blocks it being set on non-intercompany loans. Hidden when intercompany features are not enabled. | Loan Type entity type = Intercompany | e.g., SubCo US | custrecord_da_loan_intrcmpny_subsidiary |
| Customer / Vendor (Loan) | List/Record | The representing entities from the NetSuite setup above. On auto-eliminating journals, lender-side lines carry the intercompany customer and borrower-side lines the intercompany vendor, each paired with the due to/from subsidiary. | Representing entities must exist | Auto-generated representing customer/vendor | custrecord_da_loan_customer / custrecord_da_loan_vendor |
| Auto Eliminate Intercompany Journals (Global Settings) | Checkbox | Checked (default): NetLoan posts one Advanced Intercompany Journal Entry covering both subsidiaries, with elimination pairing on each line. Unchecked: NetLoan posts two paired standard journals — one per subsidiary (the non-eliminating, 2-entry method). | Automated Intercompany Management | Checked | custrecord_da_gbl_auto_eliminate_ic |
| Intercompany Receivable / Payable Account (Loan Type) | List/Record | Accounts used when transferring funds; transfers post as intercompany transactions. The intercompany customer/vendor are required when these accounts are marked for auto-elimination. | Automated Intercompany Management | e.g., Intercompany Receivable | custrecord_da_type_ic_receivable_acct / custrecord_da_type_ic_payable_acct |
Behavioral notes for intercompany loans: GL accounts used on the loan type must be marked Eliminate Intercompany Transactions for auto-elimination to pair the lines; the Disbursement Vendor field is disabled; and billing/invoicing is not available — posting is journal-based.
Use Case Specific Setup
Use Case: Auto-Eliminating Intercompany Loans (recommended)
For companies using NetSuite's automated eliminations — one Advanced Intercompany Journal Entry posts both sides and eliminates at consolidation:
| Field | Setting | Notes |
|---|---|---|
| Automated Intercompany Management | Enabled | Elimination subsidiary must exist |
| Automatically Generate Representing Entities | Enabled | Creates the intercompany customer/vendor pairs |
| Auto Eliminate Intercompany Journals (NetLoan Global Settings) | Checked | Default setting |
| Loan Type GL accounts | Marked Eliminate Intercompany Transactions | Required for line pairing |
Then follow NetLoan Elimination Intercompany Loan Setup for the loan-side configuration.
Use Case: Non-Eliminating Intercompany Loans (2-entry method)
For companies handling eliminations manually or outside NetSuite — NetLoan posts two paired standard journals, one in each subsidiary:
| Field | Setting | Notes |
|---|---|---|
| Automated Intercompany Management | Enabled | Still required for intercompany entities |
| Auto Eliminate Intercompany Journals (NetLoan Global Settings) | Unchecked | Switches to two paired journals |
| Loan Type GL accounts | No elimination flag required | Eliminations handled manually |
Then follow NetLoan - Intercompany Loan Setup (non-eliminating).
