OneWorld Flow
NetSuite OneWorld enables managing multiple subsidiaries, countries, currencies, and tax jurisdictions in a single account with consolidated financial reporting and intercompany transaction automation.
What is NetSuite OneWorld?
NetSuite OneWorld Architecture
═══════════════════════════════════════════════════════════════════════════════
┌─────────────────────────────────────────────────────────────────────────────┐
│ NETSUITE ONEWORLD ACCOUNT │
│ │
│ ┌───────────────────────────────────────────────────────────────────────┐ │
│ │ PARENT COMPANY (Top-Level) │ │
│ │ Currency: USD (Consolidated) │ │
│ └───────────────────────────────────────────────────────────────────────┘ │
│ │ │ │ │
│ ▼ ▼ ▼ │
│ ┌─────────────────┐ ┌─────────────────┐ ┌─────────────────┐ │
│ │ Subsidiary A │ │ Subsidiary B │ │ Subsidiary C │ │
│ │ ───────────── │ │ ───────────── │ │ ───────────── │ │
│ │ Country: USA │ │ Country: UK │ │ Country: DE │ │
│ │ Currency: USD │ │ Currency: GBP │ │ Currency: EUR │ │
│ │ Tax: US GAAP │ │ Tax: UK VAT │ │ Tax: German VAT│ │
│ │ Own COA │ │ Own COA │ │ Own COA │ │
│ │ Own GL │ │ Own GL │ │ Own GL │ │
│ └─────────────────┘ └─────────────────┘ └─────────────────┘ │
│ │ │ │ │
│ └──────────────────────┼──────────────────────┘ │
│ ▼ │
│ ┌─────────────────────────────┐ │
│ │ CONSOLIDATED FINANCIALS │ │
│ │ ───────────────────────── │ │
│ │ • Currency Translation │ │
│ │ • Intercompany Elimination│ │
│ │ • Combined Reporting │ │
│ └─────────────────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────────┘
OneWorld vs Standard NetSuite
| Feature | Standard NetSuite | NetSuite OneWorld |
|---|---|---|
| Subsidiaries | Single entity | Unlimited subsidiaries |
| Base Currency | One currency | Multiple currencies |
| Chart of Accounts | One COA | COA per subsidiary or shared |
| Tax Jurisdictions | Single nexus | Multiple countries/nexuses |
| Consolidation | N/A | Automatic with eliminations |
| Intercompany | N/A | Automated IC transactions |
| Financial Reporting | Single entity | Subsidiary + Consolidated |
| User Access | Global | By subsidiary/role |
| Pricing | Base license | Additional module |
Key OneWorld Capabilities
1. Multi-Subsidiary Management
Subsidiary Hierarchy Example
═══════════════════════════════════════════════════════════════════════════════
Global Corp (Parent)
│
┌──────────────────┼──────────────────┐
│ │ │
▼ ▼ ▼
Americas HQ EMEA HQ APAC HQ
│ │ │
┌────┴────┐ ┌────┴────┐ ┌────┴────┐
│ │ │ │ │ │
▼ ▼ ▼ ▼ ▼ ▼
USA Canada UK Germany Japan Australia
Sub Sub Sub Sub Sub Sub
Each subsidiary has:
• Own legal entity
• Own currency
• Own tax rules
• Own GL/financials
• Can transact with other subs (intercompany)
2. Intercompany Transactions
Automatic handling of transactions between subsidiaries:
- Sales/Purchases - Intercompany SO creates paired IC PO
- Inventory Transfers - Move stock between subsidiary locations
- Service Charges - Management fees, shared services
- Journal Entries - Intercompany loans, allocations
See Cross-Subsidiary Transactions for details
3. Multi-Currency Operations
Multi-Currency Flow
═══════════════════════════════════════════════════════════════════════════════
Transaction in Local Currency
│
▼
┌─────────────────────────────────────────────────────────────────────────────┐
│ UK Subsidiary sells to German Subsidiary │
│ │
│ UK Books (GBP): German Books (EUR): │
│ ───────────────── ─────────────────── │
│ AR: £10,000 AP: €11,500 │
│ Revenue: £10,000 Expense: €11,500 │
│ │
│ Exchange Rate: 1 GBP = 1.15 EUR │
└─────────────────────────────────────────────────────────────────────────────┘
│
▼
Consolidation (to USD)
│
▼
┌─────────────────────────────────────────────────────────────────────────────┐
│ Consolidated Books (USD): │
│ ───────────────────────── │
│ UK Revenue: $12,500 (£10,000 × 1.25) │
│ German Expense: $12,500 (€11,500 × 1.087) │
│ Intercompany Elimination: ($12,500) revenue, ($12,500) expense │
│ ─────────────────────────────────────────────────────────────────────── │
│ Net Impact: $0 (eliminated on consolidation) │
└─────────────────────────────────────────────────────────────────────────────┘
See Multi-Currency Operations for details
4. Consolidated Reporting
Generate financial statements at any level:
- Individual subsidiary financials
- Regional roll-ups (e.g., all EMEA subsidiaries)
- Global consolidated with eliminations
See Consolidated Reporting for details
OneWorld Setup Prerequisites
Licensing Requirements
| Requirement | Details |
|---|---|
| OneWorld Module | Must be licensed and enabled |
| Multi-Currency | Automatically included with OneWorld |
| Advanced Financials | Recommended for full consolidation features |
| SuiteGL | Optional - enhanced GL customization |
Before You Begin Checklist
OneWorld Implementation Checklist
═══════════════════════════════════════════════════════════════════════════════
PLANNING PHASE:
□ Define subsidiary structure (legal entities)
□ Identify base/functional currency per subsidiary
□ Map chart of accounts strategy (shared vs unique)
□ Document intercompany transaction types needed
□ Define elimination rules
□ Plan user access by subsidiary
TECHNICAL SETUP:
□ Enable OneWorld feature (if not already enabled)
□ Configure currencies and exchange rate sources
□ Set up subsidiary records
□ Configure intercompany accounts
□ Define elimination subsidiary (if needed)
□ Set up consolidated reporting
DATA CONSIDERATIONS:
□ Identify shared data (items, vendors, customers)
□ Plan subsidiary-specific data (GL accounts, tax codes)
□ Document opening balances per subsidiary
□ Plan historical data migration strategy
OneWorld Feature Setup
Enable OneWorld
Navigation: Setup > Company > Enable Features > Company subtab
Enable Features - Company Subtab
═══════════════════════════════════════════════════════════════════════════════
┌─ Company Features ───────────────────────────────────────────────────────────┐
│ │
│ Subsidiaries │
│ ───────────── │
│ │
│ ☑ SUBSIDIARIES ← Must be checked │
│ Enable multi-subsidiary management │
│ │
│ ☑ INTERCOMPANY AUTO ELIMINATION ← Recommended │
│ Automatically create elimination entries │
│ │
│ ☑ MULTI-BOOK ACCOUNTING ← Optional │
│ Multiple accounting books per subsidiary │
│ │
│ Multi-Currency │
│ ────────────── │
│ │
│ ☑ MULTIPLE CURRENCIES ← Auto-enabled with OneWorld │
│ │
└──────────────────────────────────────────────────────────────────────────────┘
⚠️ WARNING: Once OneWorld is enabled, it cannot be disabled.
Test thoroughly in Sandbox before enabling in Production.
Configure Accounting Preferences
Navigation: Setup > Accounting > Accounting Preferences
Accounting Preferences for OneWorld
═══════════════════════════════════════════════════════════════════════════════
General Subtab:
────────────────────────────────────────────────────────────────────────────────
□ Use Account Numbers ← Recommended for multi-sub
☑ Allow Transaction Date Changes ← Consider restricting by sub
☑ Require Approvals ← Consider by subsidiary
Items/Transactions Subtab:
────────────────────────────────────────────────────────────────────────────────
Intercompany Time and Expense:
○ Do Not Create
● Create Automatically ← Recommended for expense reports
Intercompany Cross-Subsidiary Fulfillment:
☑ Allow fulfillment from other subs ← Enable for shared inventory
Reporting Subtab:
────────────────────────────────────────────────────────────────────────────────
Consolidated Exchange Rate:
● Average Rate ← For income statement items
○ Current Rate
○ Historical Rate
Balance Sheet Translation:
● Current Rate ← Standard for assets/liabilities
Income Statement Translation:
● Average Rate ← Standard for P&L items
Subsidiary Types
Operating Subsidiaries
Regular business entities that conduct operations:
| Characteristic | Details |
|---|---|
| Purpose | Day-to-day business operations |
| Transactions | Sales, purchases, payroll, etc. |
| Financials | Full P&L and Balance Sheet |
| Example | "Acme Corp - USA", "Acme Corp - UK" |
Elimination Subsidiaries
Special subsidiaries for consolidation adjustments:
| Characteristic | Details |
|---|---|
| Purpose | Record elimination and consolidation entries |
| Transactions | Only elimination journal entries |
| Financials | Offset entries only |
| Example | "Corporate Eliminations" |
Elimination Subsidiary Concept
═══════════════════════════════════════════════════════════════════════════════
BEFORE ELIMINATION:
────────────────────────────────────────────────────────────────────────────────
Sub A Revenue: $1,000,000
Sub B Revenue: $500,000
IC Revenue (A to B): $100,000 ← Should not appear in consolidated
─────────────────────────────────
Simple Sum: $1,600,000 ← WRONG - double counts IC
WITH ELIMINATION SUBSIDIARY:
────────────────────────────────────────────────────────────────────────────────
Sub A Revenue: $1,000,000
Sub B Revenue: $500,000
IC Revenue (A to B): $100,000
Elimination Sub: ($100,000) ← Removes IC revenue
─────────────────────────────────
Consolidated: $1,500,000 ← CORRECT
See Consolidation & Elimination for setup details
Data Sharing in OneWorld
Shared vs Subsidiary-Specific Data
| Data Type | Sharing Model | Notes |
|---|---|---|
| Items | Shared across all | Inventory items available to all subs |
| Customers | Shared or Sub-specific | Can restrict by subsidiary |
| Vendors | Shared or Sub-specific | Can restrict by subsidiary |
| Employees | Subsidiary-specific | Assigned to one primary sub |
| GL Accounts | Shared or Sub-specific | Can use same COA or unique per sub |
| Departments | Shared or Sub-specific | Classification segments |
| Classes | Shared or Sub-specific | Classification segments |
| Locations | Subsidiary-specific | Must be assigned to a subsidiary |
Subsidiary Context
Subsidiary Context in NetSuite
═══════════════════════════════════════════════════════════════════════════════
When a user logs in or creates a transaction:
┌─────────────────────────────────────────────────────────────────────────────┐
│ User Role: Accountant - USA │
│ Subsidiary Access: USA Subsidiary only │
│ │
│ ┌─ Transaction Entry ────────────────────────────────────────────────────┐ │
│ │ │ │
│ │ Subsidiary: [USA Subsidiary ▼] ← Determines: │ │
│ │ • Available GL accounts │ │
│ │ Date: 01/15/2025 • Currency options │ │
│ │ • Tax codes │ │
│ │ Currency: [USD ▼] • Locations available │ │
│ │ • Intercompany options │ │
│ │ Location: [USA Warehouse ▼] │ │
│ │ │ │
│ └────────────────────────────────────────────────────────────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────────┘
OneWorld Transaction Flow Overview
End-to-End OneWorld Transaction Flow
═══════════════════════════════════════════════════════════════════════════════
1. TRANSACTION ENTRY
─────────────────────────────────────────────────────────────────────────
User enters transaction in subsidiary context
System validates against subsidiary rules (currency, tax, accounts)
2. INTERCOMPANY DETECTION
─────────────────────────────────────────────────────────────────────────
If transaction involves another subsidiary:
→ System auto-creates paired intercompany transaction
→ Links both transactions for settlement tracking
3. GL POSTING
─────────────────────────────────────────────────────────────────────────
Each subsidiary records in its own GL
Intercompany accounts track cross-sub balances
4. PERIOD CLOSE
─────────────────────────────────────────────────────────────────────────
FX revaluation per subsidiary
Intercompany reconciliation
Settlement processing (if configured)
5. CONSOLIDATION
─────────────────────────────────────────────────────────────────────────
Currency translation to parent currency
Elimination entries generated
Consolidated financials available
6. REPORTING
─────────────────────────────────────────────────────────────────────────
Run reports at any level:
• Individual subsidiary
• Subsidiary group/region
• Consolidated (with or without eliminations)
Quick Reference: Key Setup Records
| Record | Navigation | Purpose |
|---|---|---|
| Subsidiary | Setup > Company > Subsidiaries | Define legal entities |
| Currency | Lists > Accounting > Currencies | Setup currencies |
| Exchange Rates | Lists > Accounting > Currency Exchange Rates | Manage rates |
| Intercompany Preferences | Setup > Accounting > Intercompany | IC automation settings |
| GL Account | Lists > Accounting > Accounts | Define/map accounts |
| Elimination Rules | Setup > Accounting > Intercompany Elimination | Auto-elimination config |
Related Documentation
- Subsidiary Management - Creating and configuring subsidiaries
- Cross-Subsidiary Transactions - Intercompany orders and transfers
- Intercompany Settlement - Clearing intercompany balances
- Consolidation & Elimination - Period-end consolidation process
- Multi-Currency Operations - Currency management and translation
- Consolidated Reporting - Financial statement generation
- Global Compliance - Multi-country tax and compliance
Existing Intercompany Resources
- Intercompany Flow - Detailed intercompany transaction flows
- Intercompany Journal Entries - IC journal entry specifics