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Consolidation

Complete guide to multi-subsidiary consolidation in NetSuite OneWorld.


Overview​

CONSOLIDATION PROCESS
═══════════════════════════════════════════════════════════════════

SUBSIDIARY CLOSE CONSOLIDATION COMBINED
──────────────── ───────────── ────────

┌─────────────┐
│ US Corp │──────┐
│ (Parent) │ │
└─────────────┘ │
│ ┌─────────────────┐
┌─────────────┐ │ │ │
│ UK Ltd │──────┼────►│ CONSOLIDATION │────► Consolidated
│ (Child) │ │ │ │ Financial
└─────────────┘ │ │ • Translation │ Statements
│ │ • Elimination │
┌─────────────┐ │ │ • Combination │
│ Germany GmbH│──────┘ │ │
│ (Child) │ └─────────────────┘
└─────────────┘

Subsidiary Close Sequence​

Close Order​

[!IMPORTANT] Child subsidiaries must close BEFORE parent for proper consolidation.

SUBSIDIARY CLOSE SEQUENCE
───────────────────────────────────────────────────────────

LEVEL 3 (Lowest) LEVEL 2 LEVEL 1 (Parent)
──────────────── ─────── ────────────────

UK Operations ─┐
├─► Europe Region ────┐
Germany Ops ─┘ │
├─► Global Corp
Asia Pacific ─────────────────────────┘
│
US Operations ─────────────────────────┘

Close Order:
1. UK Operations ✓ Close first
2. Germany Ops ✓ Close first
3. Asia Pacific ✓ Close first
4. Europe Region ✓ Close after children
5. Global Corp ✓ Close last

Subsidiary Close Status​

CONSOLIDATION STATUS VIEW
───────────────────────────────────────────────────────────

Period: January 2026

Subsidiary Status Ready to Consolidate
────────── ────── ────────────────────
Global Corp Open ○ No (parent)
├─ US Operations Closed ✓ Yes
├─ Europe Region AR/AP Closed ○ Pending
│ ├─ UK Ltd Closed ✓ Yes
│ └─ Germany GmbH Closed ✓ Yes
└─ Asia Pacific Closed ✓ Yes

Note: Europe Region must complete close before consolidation

Currency Translation​

Translation Process​

CURRENCY TRANSLATION
═══════════════════════════════════════════════════════════════════

Foreign Subsidiary: UK Ltd (GBP)
Parent Currency: USD
Period-End Rate: 1 GBP = 1.265 USD
Average Rate: 1 GBP = 1.258 USD

BALANCE SHEET TRANSLATION (Period-End Rate):
Account GBP Rate USD
─────── ─── ──── ───
Cash £100,000 1.265 $126,500
A/R £50,000 1.265 $63,250
Fixed Assets £200,000 1.265* $253,000
A/P (£30,000) 1.265 ($37,950)

* Fixed assets may use historical rate

INCOME STATEMENT TRANSLATION (Average Rate):
Account GBP Rate USD
─────── ─── ──── ───
Revenue £500,000 1.258 $629,000
COGS (£300,000) 1.258 ($377,400)
OpEx (£100,000) 1.258 ($125,800)
Net Income £100,000 1.258 $125,800

Translation Adjustment (CTA)​

CUMULATIVE TRANSLATION ADJUSTMENT
───────────────────────────────────────────────────────────

The CTA captures FX translation differences:

Net Assets at Historical Rate: $500,000
Net Assets at Current Rate: $512,000
────────────────────────────────────────────
Translation Adjustment: $12,000

Entry:
Balance Sheet (Various) $12,000 Adjustment
Cumulative Translation Adj $12,000 (Equity)

CTA appears in:
Stockholders' Equity
└── Other Comprehensive Income
└── Cumulative Translation Adjustment

Calculate Consolidated Exchange Rates​

Rate Calculation Task​

CALCULATE CONSOLIDATED RATES
───────────────────────────────────────────────────────────

Navigation: Period Close Checklist > Calculate Consolidated Rates

Prerequisites:
✓ All subsidiary currency rates entered
✓ FX Revaluation complete

Configuration:
┌────────────────────────────────────────────────────────┐
│ Period: January 2026 │
│ Parent: Global Corp (USD) │
│ │
│ Rate Calculation: │
│ Balance Sheet: ● Period-End Rate │
│ ○ Average Rate │
│ │
│ Income Stmt: ○ Period-End Rate │
│ ● Average Rate │
└────────────────────────────────────────────────────────┘

Output:
┌────────────────────────────────────────────────────────┐
│ Currency BS Rate IS Rate │
│ ──────── ─────── ─────── │
│ GBP 1.2650 1.2580 │
│ EUR 1.0850 1.0820 │
│ JPY 0.0067 0.0066 │
│ CAD 0.7425 0.7400 │
└────────────────────────────────────────────────────────┘

Elimination Rules​

Setting Up Elimination Rules​

ELIMINATION RULES SETUP
───────────────────────────────────────────────────────────

Navigation: Setup > Accounting > Elimination Rules

Types of Elimination:

1. INTERCOMPANY REVENUE/EXPENSE
┌────────────────────────────────────────────────────┐
│ Eliminate: IC Revenue (4500) │
│ Against: IC COGS (5500) │
│ Method: Net to Zero │
└────────────────────────────────────────────────────┘

2. INTERCOMPANY BALANCES
┌────────────────────────────────────────────────────┐
│ Eliminate: IC Receivable (1250) │
│ Against: IC Payable (2050) │
│ Method: Net to Zero │
└────────────────────────────────────────────────────┘

3. INVESTMENT IN SUBSIDIARY
┌────────────────────────────────────────────────────┐
│ Eliminate: Investment in Sub (1800) │
│ Against: Subsidiary Equity │
│ Method: Full Elimination │
└────────────────────────────────────────────────────┘

Elimination Account Structure​

Elimination TypeDebit AccountCredit Account
IC RevenueIC RevenueElimination Offset
IC COGSElimination OffsetIC COGS
IC ReceivableIC PayableIC Receivable
IC PayableIC PayableIC Receivable
InvestmentSubsidiary EquityInvestment in Sub

Consolidation Journal Entries​

System-Generated Entries​

CONSOLIDATION JOURNAL ENTRIES
───────────────────────────────────────────────────────────

1. TRANSLATION ENTRY (Per Subsidiary)
Foreign Sub Net Assets: $512,000
At Historical: $500,000
─────────────────────────────────
CTA Entry:
Various BS Accounts $12,000 Dr
CTA (Equity) $12,000 Cr

2. IC ELIMINATION ENTRY
IC Revenue $500,000 Dr
IC COGS $500,000 Cr

IC Payable $150,000 Dr
IC Receivable $150,000 Cr

3. INVESTMENT ELIMINATION (if applicable)
Common Stock (Sub) $100,000 Dr
Retained Earnings (Sub) $400,000 Dr
Investment in Sub $500,000 Cr

Minority Interest (Non-Controlling Interest)​

When Less Than 100% Owned​

MINORITY INTEREST CALCULATION
───────────────────────────────────────────────────────────

Subsidiary: UK Ltd
Parent Ownership: 80%
Minority Interest: 20%

UK Ltd Net Income: $100,000

Allocation:
Parent Share (80%): $80,000 → Consolidated Net Income
NCI Share (20%): $20,000 → Non-Controlling Interest

UK Ltd Equity: $500,000

Allocation:
Parent Share (80%): $400,000 → Consolidated Equity
NCI Share (20%): $100,000 → NCI (Equity Line Item)

Consolidated Statements Show:
Net Income attributable to parent: $X,XXX,XXX
Net Income attributable to NCI: $XXX,XXX

Consolidated Financial Statements​

Generating Consolidated Reports​

CONSOLIDATED FINANCIAL STATEMENTS
───────────────────────────────────────────────────────────

Navigation: Reports > Financial > (Select Report)

Filter Settings:
┌────────────────────────────────────────────────────────┐
│ Subsidiary: ● Consolidated │
│ ○ [Specific Subsidiary] │
│ │
│ Include: ☑ All Subsidiaries │
│ ☐ Exclude Inactive │
│ │
│ Eliminations: ● Include Eliminations │
│ ○ Exclude Eliminations │
│ │
│ Currency: USD (Parent Currency) │
└────────────────────────────────────────────────────────┘

Balance Sheet (Consolidated)​

CONSOLIDATED BALANCE SHEET
───────────────────────────────────────────────────────────

Global Corp and Subsidiaries
As of January 31, 2026

ASSETS USD
────── ───
Current Assets
Cash and Equivalents $2,500,000
Accounts Receivable (net) $1,800,000
Inventory $1,200,000
Total Current Assets $5,500,000

Non-Current Assets
Property, Plant & Equipment (net) $3,000,000
Intangible Assets $500,000
Total Non-Current Assets $3,500,000

TOTAL ASSETS $9,000,000

LIABILITIES & EQUITY
────────────────────
Current Liabilities
Accounts Payable $1,200,000
Accrued Expenses $500,000
Total Current Liabilities $1,700,000

Stockholders' Equity
Common Stock $500,000
Retained Earnings $6,580,000
Cumulative Translation Adjustment $120,000
Non-Controlling Interest $100,000
Total Equity $7,300,000

TOTAL LIABILITIES & EQUITY $9,000,000

Consolidation Checklist​

CONSOLIDATION CLOSE CHECKLIST
═══════════════════════════════════════════════════════════════════

BEFORE CONSOLIDATION:
□ All child subsidiaries closed
□ IC balances reconciled and balanced
□ IC adjustments created
□ FX revaluation complete for all subs
□ Period-end exchange rates entered

CONSOLIDATION TASKS:
□ Calculate Consolidated Exchange Rates
□ Create IC Eliminations
□ Review CTA adjustments
□ Verify minority interest calculations

POST-CONSOLIDATION:
□ Run consolidated trial balance
□ Review consolidated financials
□ Verify eliminations netted correctly
□ Close parent subsidiary
□ Final period close

Best Practices​

Consolidation Management​

PracticeRecommendation
Close sequenceAlways children before parent
Rate timingEnter rates before month-end
IC reviewDaily IC balance monitoring
DocumentationRecord all manual adjustments
ValidationVerify eliminations each period

Common Issues​

IssueCauseResolution
CTA varianceRate source inconsistencyUse single rate source
IC not eliminatedMissing elimination ruleAdd rule for account
NCI incorrectOwnership % changedUpdate sub record
Sub not consolidatingNot marked for consolidationCheck sub settings