Subsidiary Management
Subsidiaries are the foundation of NetSuite OneWorld. Each subsidiary represents a legal entity with its own financial records, currency, and tax configuration.
Subsidiary Record
Creating a Subsidiary
Navigation: Setup > Company > Subsidiaries > New
Subsidiary Record Structure
═══════════════════════════════════════════════════════════════════════════════
┌─ Primary Information ────────────────────────────────────────────────────────┐
│ │
│ Name: [Acme Corp - United Kingdom ] │
│ Name (Local): [Acme Corp UK Ltd ] ← Legal name │
│ │
│ Parent: [▼ Acme Corp - Parent ] ← Hierarchy │
│ │
│ Subsidiary Type: ○ Operating ← Normal ops │
│ ○ Elimination ← Consolidation │
│ │
│ Country: [▼ United Kingdom ] │
│ │
│ State/Province: [ ] │
│ │
│ Edition: [▼ United Kingdom ] ← Localization │
│ │
└──────────────────────────────────────────────────────────────────────────────┘
┌─ Currency ───────────────────────────────────────────────────────────────────┐
│ │
│ Currency: [▼ GBP - British Pound ] ← Base currency │
│ │
│ ☑ Allow Transaction Currency Override ← Multi-currency │
│ │
└──────────────────────────────────────────────────────────────────────────────┘
┌─ Fiscal Calendar ────────────────────────────────────────────────────────────┐
│ │
│ Fiscal Calendar: [▼ Standard Calendar ] │
│ │
│ First Fiscal Month:[▼ January ] │
│ │
└──────────────────────────────────────────────────────────────────────────────┘
┌─ Classification ─────────────────────────────────────────────────────────────┐
│ │
│ Logo: [Upload] ← For reports │
│ │
│ URL: [https://uk.acmecorp.com ] │
│ │
│ Federal ID: [GB123456789 ] ← Tax ID │
│ │
└──────────────────────────────────────────────────────────────────────────────┘
Subsidiary Hierarchy
Hierarchy Structure
Subsidiary Hierarchy Patterns
═══════════════════════════════════════════════════════════════════════════════
PATTERN 1: Simple Flat Structure
─────────────────────────────────────────────────────────────────────────────
Parent Corp
│
┌────────────────┼────────────────┐
│ │ │
Sub A Sub B Sub C
Use when: Few subsidiaries, simple structure
PATTERN 2: Regional Hierarchy
─────────────────────────────────────────────────────────────────────────────
Global Parent
│
┌────────────────┼────────────────┐
│ │ │
Americas HQ EMEA HQ APAC HQ
│ │ │
┌────┴────┐ ┌────┴────┐ ┌────┴────┐
│ │ │ │ │ │ │ │ │
USA CAN MEX UK DE FR JPN AUS SGP
Use when: Large multinational, regional management
PATTERN 3: Functional Structure
─────────────────────────────────────────────────────────────────────────────
Holding Company
│
┌────────────────┼────────────────┐
│ │ │
Operating Co Property Co IP Holding Co
│
┌────┴────┐
│ │
Mfg Sub Sales Sub
Use when: Legal/tax optimization, asset protection
PATTERN 4: With Elimination Subsidiary
─────────────────────────────────────────────────────────────────────────────
Parent Corp
│
┌────────────────┼────────────────┬─────────────────┐
│ │ │ │
Sub A Sub B Sub C Eliminations
(Operating) (Operating) (Operating) (Elimination type)
Use when: Complex intercompany, need clean consolidated reports
Parent-Child Relationships
| Relationship | Behavior |
|---|---|
| Reporting Roll-up | Child subsidiary data consolidates to parent |
| Intercompany | Transactions between parent/child are intercompany |
| User Access | Parent access can include child access |
| Elimination | Intercompany eliminated at common parent level |
Subsidiary Configuration
Currency Settings
Currency Configuration per Subsidiary
═══════════════════════════════════════════════════════════════════════════════
┌─ Subsidiary: UK Operations ──────────────────────────────────────────────────┐
│ │
│ Base Currency: GBP (British Pound) │
│ ───────────────────────────────── │
│ • All GL balances stored in GBP │
│ • Default for all transactions │
│ • Financial reports in GBP │
│ │
│ Transaction Currencies Allowed: │
│ ───────────────────────────────── │
│ ☑ GBP - British Pound (Base) │
│ ☑ USD - US Dollar │
│ ☑ EUR - Euro │
│ ☐ JPY - Japanese Yen │
│ │
│ Customers can transact in any enabled currency │
│ System tracks in both transaction and base currency │
│ │
└──────────────────────────────────────────────────────────────────────────────┘
Fiscal Calendar
Each subsidiary can have its own fiscal calendar:
| Scenario | Configuration |
|---|---|
| Same fiscal year | All subs use same calendar |
| Different year-ends | Create separate calendars (e.g., Japan: April-March) |
| 52/53 week calendar | Configure retail calendar per sub |
Fiscal Calendar Example
═══════════════════════════════════════════════════════════════════════════════
USA Subsidiary: UK Subsidiary: Japan Subsidiary:
Calendar Year Calendar Year Japanese Fiscal Year
──────────────── ──────────────── ────────────────────
Jan 1 - Dec 31 Jan 1 - Dec 31 Apr 1 - Mar 31
Q1: Jan-Mar Q1: Jan-Mar Q1: Apr-Jun
Q2: Apr-Jun Q2: Apr-Jun Q2: Jul-Sep
Q3: Jul-Sep Q3: Jul-Sep Q3: Oct-Dec
Q4: Oct-Dec Q4: Oct-Dec Q4: Jan-Mar
All consolidate to Parent using appropriate period mapping
Tax Configuration
Tax Setup per Subsidiary
═══════════════════════════════════════════════════════════════════════════════
Subsidiary: Germany Operations
────────────────────────────────────────────────────────────────────────────────
Tax Registration:
VAT Number: DE123456789
Tax ID: 12/345/67890
Tax Engine: SuiteTax (or Legacy Tax)
Tax Schedules:
┌─────────────────────┬────────────┬─────────────────────┐
│ Schedule │ Rate │ GL Account │
├─────────────────────┼────────────┼─────────────────────┤
│ Standard VAT │ 19% │ 2300 - VAT Payable │
│ Reduced VAT │ 7% │ 2300 - VAT Payable │
│ Zero Rated │ 0% │ N/A │
│ Exempt │ N/A │ N/A │
│ Reverse Charge │ 0% (noted) │ 2300 - VAT Payable │
│ EU IC Goods │ 0% │ N/A │
└─────────────────────┴────────────┴─────────────────────┘
Tax Nexuses:
☑ Germany (Primary)
☑ Austria (VAT registered)
☐ France (not registered)
Chart of Accounts Strategy
Option 1: Shared Chart of Accounts
Shared COA Approach
═══════════════════════════════════════════════════════════════════════════════
All subsidiaries use the SAME account numbers:
Account Description USA Sub UK Sub DE Sub
──────────────────────────────────────────────────────────────────────────
1000 Cash ✓ ✓ ✓
1100 Accounts Receivable ✓ ✓ ✓
1200 Inventory ✓ ✓ ✓
2000 Accounts Payable ✓ ✓ ✓
4000 Revenue ✓ ✓ ✓
5000 COGS ✓ ✓ ✓
ADVANTAGES:
• Easy consolidated reporting
• Consistent account structure
• Simpler maintenance
DISADVANTAGES:
• May not fit local requirements
• Less flexibility per country
• May have unused accounts per sub
Option 2: Subsidiary-Specific Accounts
Subsidiary-Specific COA Approach
═══════════════════════════════════════════════════════════════════════════════
Each subsidiary has unique accounts:
USA Sub Accounts: UK Sub Accounts: DE Sub Accounts:
───────────────── ───────────────── ─────────────────
1000 Cash - USD 1000 Cash - GBP 1000 Kasse
1100 AR - Trade 1100 Debtors 1100 Forderungen
1200 Inventory 1200 Stock 1200 Vorräte
2000 AP - Trade 2000 Creditors 2000 Verbindlichkeiten
4000 Sales Revenue 4000 Turnover 4000 Umsatzerlöse
Mapping for Consolidation:
USA:1000 ─┐
UK:1000 ─┼──► Consolidated Account: 1000 Cash
DE:1000 ─┘
ADVANTAGES:
• Local compliance (names, structure)
• Flexibility per country
• Matches local statutory requirements
DISADVANTAGES:
• Requires account mapping for consolidation
• More maintenance
• Complex reporting setup
Option 3: Hybrid Approach (Recommended)
Hybrid COA Approach
═══════════════════════════════════════════════════════════════════════════════
Core accounts shared, local accounts added per subsidiary:
SHARED ACCOUNTS (All Subs):
──────────────────────────────────────────────────────────────────────────
1000-1999 Assets
2000-2999 Liabilities
3000-3999 Equity
4000-4999 Revenue
5000-5999 COGS
6000-6999 Operating Expenses
SUBSIDIARY-SPECIFIC ACCOUNTS:
──────────────────────────────────────────────────────────────────────────
USA Only:
2100 State Sales Tax Payable
6210 401(k) Expense
UK Only:
2100 VAT Payable
2110 PAYE Payable
6210 Employer NIC
Germany Only:
2100 Umsatzsteuer (MwSt)
2110 Lohnsteuer
6210 Arbeitgeberanteil Sozialversicherung
This approach provides both consistency and local compliance.
User Access by Subsidiary
Role-Based Subsidiary Access
Subsidiary Access Configuration
═══════════════════════════════════════════════════════════════════════════════
ROLE: Regional Controller - EMEA
┌─ Subsidiary Access ──────────────────────────────────────────────────────────┐
│ │
│ Subsidiary Restrictions: │
│ ──────────────────────── │
│ │
│ ☐ Parent Corp (Global) ← No access to parent-only data │
│ ☐ Americas HQ ← No access to Americas │
│ ☑ EMEA HQ ← Full access │
│ ☑ UK Operations ← Full access │
│ ☑ Germany Operations ← Full access │
│ ☑ France Operations ← Full access │
│ ☐ APAC HQ ← No access to APAC │
│ │
└──────────────────────────────────────────────────────────────────────────────┘
This user can:
• Enter transactions for UK, Germany, France
• View reports for EMEA region
• Cannot see Americas or APAC data
• Cannot post to Parent Corp directly
Multi-Subsidiary Roles
Access Patterns
═══════════════════════════════════════════════════════════════════════════════
PATTERN 1: Single Subsidiary User
─────────────────────────────────────────────────────────────────────────────
Example: UK Accountant
Access: UK Operations only
Use: Day-to-day subsidiary operations
PATTERN 2: Regional User
─────────────────────────────────────────────────────────────────────────────
Example: EMEA Controller
Access: EMEA HQ + all EMEA child subsidiaries
Use: Regional oversight and reporting
PATTERN 3: Global User (No Eliminations)
─────────────────────────────────────────────────────────────────────────────
Example: Corporate Analyst
Access: All operating subsidiaries
Use: Cross-subsidiary analysis
PATTERN 4: Full Global User
─────────────────────────────────────────────────────────────────────────────
Example: CFO, Global Controller
Access: All subsidiaries including Elimination sub
Use: Consolidated reporting, elimination entries
PATTERN 5: Intercompany User
─────────────────────────────────────────────────────────────────────────────
Example: Intercompany Accountant
Access: Multiple specific subsidiaries (not all)
Use: Processing intercompany transactions
Subsidiary-Specific Preferences
Per-Subsidiary Settings
| Setting | Scope | Example |
|---|---|---|
| Approval Routing | By subsidiary | Different approvers per country |
| Numbering Sequences | By subsidiary | UK invoices: UK-INV-0001 |
| Email Templates | By subsidiary | Localized email content |
| PDF Templates | By subsidiary | Local language invoices |
| Tax Settings | By subsidiary | VAT vs Sales Tax |
| Payment Terms | By subsidiary | Net 30 vs 60 days |
Transaction Numbering
Transaction Numbering by Subsidiary
═══════════════════════════════════════════════════════════════════════════════
Setup: Setup > Company > Auto-Generated Numbers
USA Subsidiary: UK Subsidiary: Germany Subsidiary:
───────────────── ───────────────── ─────────────────────
Invoice: INV- Invoice: UK-INV- Invoice: DE-RG-
SO: SO- SO: UK-SO- SO: DE-AB-
PO: PO- PO: UK-PO- PO: DE-BE-
Example Results:
───────────────── ───────────────── ─────────────────────
INV-10001 UK-INV-5001 DE-RG-2001
SO-20001 UK-SO-8001 DE-AB-3001
PO-30001 UK-PO-4001 DE-BE-4001
Each subsidiary maintains its own sequence
Managing Inactive Subsidiaries
Deactivating a Subsidiary
Subsidiary Deactivation Process
═══════════════════════════════════════════════════════════════════════════════
PREREQUISITES:
─────────────────────────────────────────────────────────────────────────────
☑ All transactions closed/cleared
☑ No open AR/AP balances
☑ Inventory zeroed out
☑ Bank accounts reconciled to zero
☑ Intercompany balances settled
☑ Final tax filings completed
STEPS:
─────────────────────────────────────────────────────────────────────────────
1. Close all open periods for the subsidiary
Setup > Accounting > Manage Accounting Periods
2. Post closing journal entries
Move any remaining balances to appropriate accounts
3. Mark subsidiary as inactive
Setup > Company > Subsidiaries > [Select] > Edit
☑ Inactive
RESULT:
─────────────────────────────────────────────────────────────────────────────
• No new transactions allowed
• Historical data preserved
• Still visible in historical reports
• Can be reactivated if needed
SuiteQL Queries
List All Subsidiaries
-- Get all subsidiaries with hierarchy
SELECT
s.id,
s.name,
s.legalname,
parent.name AS parent_name,
s.country,
s.currency,
cur.symbol AS currency_symbol,
CASE WHEN s.iselimination = 'T' THEN 'Elimination' ELSE 'Operating' END AS sub_type,
CASE WHEN s.isinactive = 'T' THEN 'Inactive' ELSE 'Active' END AS status
FROM
subsidiary s
LEFT JOIN subsidiary parent ON s.parent = parent.id
LEFT JOIN currency cur ON s.currency = cur.id
ORDER BY
s.name
Subsidiary Hierarchy Query
-- Get subsidiary hierarchy with levels
WITH RECURSIVE SubHierarchy AS (
-- Base case: top-level subsidiaries (no parent)
SELECT
id,
name,
parent,
1 AS level,
name AS path
FROM
subsidiary
WHERE
parent IS NULL
UNION ALL
-- Recursive case: child subsidiaries
SELECT
s.id,
s.name,
s.parent,
sh.level + 1,
sh.path || ' > ' || s.name
FROM
subsidiary s
JOIN SubHierarchy sh ON s.parent = sh.id
)
SELECT
id,
name,
level,
path
FROM
SubHierarchy
ORDER BY
path
Transactions by Subsidiary
-- Transaction count and value by subsidiary
SELECT
s.name AS subsidiary,
tt.name AS transaction_type,
COUNT(t.id) AS transaction_count,
SUM(t.foreigntotal) AS total_value,
cur.symbol AS currency
FROM
transaction t
JOIN subsidiary s ON t.subsidiary = s.id
JOIN transactiontype tt ON t.type = tt.id
JOIN currency cur ON t.currency = cur.id
WHERE
t.trandate >= ADD_MONTHS(SYSDATE, -12)
GROUP BY
s.name, tt.name, cur.symbol
ORDER BY
s.name, total_value DESC
Best Practices
Subsidiary Setup
| Practice | Recommendation |
|---|---|
| Naming Convention | Use consistent format: "Company - Country" or "Company - Function" |
| Hierarchy Depth | Keep to 3-4 levels maximum for simplicity |
| Elimination Sub | Create one elimination subsidiary at top level |
| Test First | Always test new subsidiary setup in Sandbox |
Ongoing Management
| Practice | Recommendation |
|---|---|
| Review Access | Audit subsidiary access quarterly |
| Monitor IC Balances | Review intercompany balances monthly |
| Period Close | Close periods for all subs together |
| Documentation | Maintain subsidiary structure documentation |
Next Steps
- Cross-Subsidiary Transactions - Intercompany orders and transfers
- Consolidation & Elimination - Period-end consolidation process
- Multi-Currency Operations - Currency management