How do I run intercompany elimination during period close in NetSuite?

Complete currency revaluation for every subsidiary first, then run NetSuite's Intercompany Elimination process, which nets out intercompany receivables, payables, and transactions so they don't double-count in the consolidated financials. Any currency revaluation left undone before elimination runs is the most common reason a residual balance is left over afterward.

By Zuny Fester, Head of Operations and Marketing

Reviewed by Zuny Fester

Published September 10, 2026Last reviewed September 10, 2026Editorial policy

Part of the month-end close guide.

Prerequisite	Currency revaluation completed for all subsidiaries first
What it nets	Intercompany receivables, payables, and transactions
Common failure mode	Running elimination before revaluation, leaving a currency delta
Where to verify	Intercompany Elimination Report, checked for a zero residual

Why order matters here

Intercompany elimination assumes that every subsidiary's intercompany balance is already stated at the correct period-end value in the consolidated reporting currency. If currency revaluation hasn't run yet, a foreign subsidiary's intercompany payable is still valued at whatever exchange rate applied when the transaction was booked, not the period-end rate — so when elimination tries to net it against the parent's receivable, the two won't match, and the difference is left sitting on the books as an unexplained residual.

The steps, in order

Enter and post all intercompany transactions for the period. Run currency revaluation for every subsidiary with a non-base currency, which posts any exchange gain or loss to the cumulative translation adjustment account. Only then run the Intercompany Elimination process, which creates elimination journal entries in the elimination subsidiary. Review the Intercompany Elimination Report to confirm the source transaction amounts, in both transaction and base currency, actually net to zero.

Next step

Map the finance workflow with the most exposure and prove the automation path.

Bring the invoice, contract, payment reconciliation, or customer finance workflow you have to defend at audit. Loopfour can map the trigger, controls, integrations, and approval loop.

Book a workflow review

Checklist

Intercompany elimination pre-flight checklist

All intercompany transactions for the period are entered and posted
Currency revaluation has been run for every non-base-currency subsidiary
The elimination subsidiary's currency and consolidated exchange rate are set correctly relative to its parent
The Intercompany Elimination Report is reviewed for a zero residual after the run

Frequently Asked Questions

The same base currency and country combination as its direct parent subsidiary, with a consolidated exchange rate of 1 to that parent.

Yes — it's common to run it, review the report, correct any source transactions that caused a residual, and re-run it before the period is locked.

That points to a specific transaction with a mapping or currency issue rather than a process-order problem — see the diagnostic on currency deltas that won't eliminate for how to trace it.

Sources

Topic

Month-End Close

Month-end close is the set of accounting tasks a company runs after a calendar month ends to turn raw transactions into a finished, trustworthy set of financial statements: reconciling subledgers, boo…

Diagnostic

When do Excel consolidations become too risky for month-end close?

Risk crosses from unlikely to expected once two or more are true: 4+ legal entities consolidated, 2+ reporting currencies, 3+ people editing the close workbook, or 50+ manual journal entries per close. Below those, a well-built workbook is usually manageable; above them, nothing stops a broken formula from producing a confident, wrong number.

Diagnostic

What causes a currency delta that won't eliminate in intercompany close?

Almost always, currency revaluation either didn't run before elimination, used a stale exchange rate, or the elimination subsidiary's consolidated exchange rate isn't set to 1 relative to its direct parent. Any of these leaves the two sides of an intercompany balance valued at different rates, so they can't net to exactly zero.