NetAsset - Elimination Journals
Use Case: When an asset is sold between two subsidiaries within the same organizational hierarchy, a company will frequently have the requirement to record the purchased asset as a new asset on the purchasing subsidiary’s books, while upon consolidation, the entity should report the asset at the original gross and net amounts.
In this use case, NetAsset supports the ability to create two separate assets and eliminate the new internal asset on an elimination entry during consolidation, such that the financials are properly stated within each subsidiary in the organization and top of the house.
Prerequisites: A native NetSuite subsidiary setup with the Elimination checkbox checked. The NetAsset Global Setting, Elimination Assets, enabled.
STEP BY STEP PROCESS
- Navigate to the Asset in need of an elimination
- On the Accounting subtab update the Elimination Subsidiary field with the correct elimination subsidiary.
- Generate Depreciation Schedules, Queue for Capitalization, Capitalize and Run Monthly Depreciation Journal just as you would on any other asset
- On the NetAsset Depreciation Schedule Entry note the additional transaction of the same type recorded in the Elimination Journal Entry field.
- Opening the Elimination Journal Entry you’ll note that it contains the opposite debits and credits of the main schedule entry journal coded instead to the Elimination Subsidiary denoted on the Asset record.
Main Journal Entry
Elimination Journal Entry
- The NetAsset Elimination Entry checkbox will also be checked on these entries to facilitate reporting