NetSuite OneWorld: Process Intercompany Fund Transfer in Different Currencies

Intercompany Fund Transfer or cross-subsidiary fund transfer is currently not available in NetSuite OneWorld. If the involved bank accounts have different currencies, the following alternate solution will apply. Here's an example to illustrate:

 

Company ABC needs to transfer 100 GBP from UK Subsidiary bank account Checking-UK (British Pound) to Canada Subsidiary bank account Savings-CA (Canadian Dollar). To accomplish this, follow the steps provided below:

 

1. Create clearing account

a. Lists > Accounting > Accounts > New

--Type = Other Current Asset

--Name = Clearing Account

--Currency = null. It is important to set this to null so that it can be used on transactions with any currency.

--General Rate Type = Current

 

b. Click Save

 

2. Create a journal entry to transfer 100 GBP from Checking-UK to Clearing Account. Navigate to Transactions > Financial > Make Journal Entries

 

a. Complete the Main field of the journal entry:

--Subsidiary = UK Subsidiary

--Currency = British pound

--Exchange Rate = 1

 

b. Complete the journal line items.

--Account-------------------Debit--------------------Credit

--Clearing Account----------100.00

--Checking-UK------------------------------------------100.00

 

c. Click Save

 

3. Create a journal entry to transfer100 British Pound from Clearing Account to Savings-CA. Navigate to Transactions > Financial > Make Journal Entries.

 

a. Complete the Main field of the journal entry:

--Subsidiary = Canada Subsidiary

--Currency = British pound

--Exchange Rate = default exchange rate or manually enter an exchange rate if needed.

 

b. Complete the journal line items.

--Account-------------------Debit--------------------Credit

--Savings-CA----------------100.00

--Clearing Account------------------------------------100.00

 

c. Click Save

 

4. Run your Balance Sheet to ensure that Clearing Account is zeroed out.