Global capability centers (GCCs) in India manage finance for global companies. CFOs there struggle with internal chargebacks (cross-charges) and transfer pricing rules. They also wrestle with combining books across different currencies. Finance teams often depend on spreadsheets or separate systems to track internal sales, expenses, and loans between branches. This manual process is error-prone: almost 99% of large firms find intercompany accounting difficult.
CFOs also worry about taxes. Over 105 countries enforce strict transfer-pricing rules. Every inter-company sale or service must be documented at market rates. Currency swings add risk: even an overnight FX move can turn a profit into a loss. These issues slow month-end closing and raise compliance risk.
Below, we explain how NetSuite OneWorld simplifies each task eliminating internal entries, handling multi-currency accounting, reconciling transactions, and automating chargebacks.
CFO Challenges
- Manual Intercompany Billing: Finance teams often send invoices or journal entries between branches using email or spreadsheets. This creates extra work. Without automation, each intercompany charge is recorded twice (once by the sender and once by the receiver), which doubles entries and leads to mistakes. 99% of large firms say intercompany reconciliation is tough.
- Transfer Pricing Rules: CFOs must prove internal prices meet global tax standards. Over 105 countries have strict guidelines, so every cross-company invoice needs documentation. If prices don’t follow market rules, tax authorities can demand penalties. Basic systems don’t enforce consistent pricing or keep a reliable audit trail.
- Multi-Currency: Subsidiaries usually report in their local currency while the parent reports in another. Manually converting hundreds of accounts each month is slow and error-prone. Even a small FX swing can erase profit, and finance teams must also record translation gains and losses correctly.
- Slow Close: Manual consolidation can drag out the month-end close. Finance teams spend hours merging reports and fixing Excel errors. One missed internal elimination can distort consolidated results by double-counting an internal sale.
NetSuite OneWorld Features
- Multi-Currency Engine: NetSuite handles 190+ currencies with automatic, up-to-date exchange rates. Each subsidiary enters transactions in its own currency. The system then converts and rolls up those balances into the parent’s currency in real time. This avoids manual currency calculations. For example, if an India office closes its books in rupees and the U.S. parent reports in dollars, OneWorld automatically converts those amounts.
- Automated Eliminations: In NetSuite, you tag an intercompany transaction. OneWorld then auto-creates the elimination journal at consolidation. This means internal sales, loans or shared costs between subsidiaries are removed from the consolidated accounts. Finance teams no longer need to post offset entries by hand.
- Reconciliation Report: NetSuite provides an intercompany reconciliation report. It lists any intercompany invoices without a matching entry. Teams can review and fix these mismatches before closing the books.
- Cross-Subsidiary Charging: NetSuite’s Intercompany framework can generate both sides of a charge automatically. For example, if Division A sells consulting to Division B, NetSuite creates a sales invoice in A and a vendor bill in B in one step. This posts an intercompany receivable in A and a payable in B, giving CFOs an instant audit trail of internal chargebacks.
- Real-Time Consolidation: Because all entities use one system, NetSuite provides live consolidated reporting. Managers can see up-to-date P&L and balance sheets anytime. In practice, this speeds up closing. Companies using OneWorld report they close the books 30–50% faster. Automation frees finance teams to spend less time crunching numbers and more time analyzing results.
Conclusion
Global finance leaders don’t have to tolerate spreadsheets. Oracle NetSuite OneWorld is built for global capability centers: it unifies ledgers and currencies, automates eliminations, and handles cross-charges. The result is faster closure, fewer errors, and clear global visibility. Importantly for India, NetSuite supports local standards (like IndAS and GST) while enforcing international rules.
SaasWorx (a NetSuite partner) helps CFOs implement these features correctly. We configure intercompany automation and multi-currency reporting so finance teams spend less time on routine entries and more time on analysis. The result is a finance function that’s accurate and auditable.
