Creating subsidiaries in NetSuite can be easy as it seems, but it’s something that needs to be planned and understood as well. In this blog, you’ll know what to prepare before creating subsidiaries and the steps in the actual creation process.
This guide will cover the following sections:
I suggest you watch the video. It’s easier to understand if you are a visual/audio learner. The content below is the same as the video. It’s for those who learn by reading.
Before you create subsidiary records in NetSuite, you need to make sure that you have the following:
- A structure of your organization’s subsidiaries
- A parent for each subsidiary record created. As you create subsidiaries, a hierarchical structure is automatically defined.
Remember to plan well because this hierarchy is very difficult to modify after it is defined. Below is visual representation that can help you consider how you want to organize and consolidate data for both accounting and reporting purposes.
Before you begin setting up subsidiaries for your OneWorld account, ensure you review the following help topics:
- Understanding Subsidiaries
- Understanding Elimination
- Planning Your Subsidiary Hierarchy
- Understanding Multiple Currencies in OneWorld
- Understanding Nexuses and Taxes in OneWorld
You must create a record for each subsidiary including elimination subsidiaries. After you have created and saved a subsidiary record, you can edit tax nexuses and preferences on that record.
When you have completed all the planning steps, you can start this process once you’relogged into NetSuite.
- Step 1: Go to Setup tab → Company → Subsidiaries → New.
- Step 2: Fill out the Subsidiary Form.
Now, let’s go into detail of each field to be filled out.
- Subsidiary of
- Select the Parent subsidiary of this new subsidiary record if applicable.
- Subsidiary is inactive
- When ticked, you will be setting this subsidiary without any transaction.
- Always Display Subsidiary Name
- When ticked, it will no longer show the Parent Subsidiary: Subsidiary format, rather, the Subsidiary name only.
- Subsidiary Logo
- You can assign a logo to this subsidiary by clicking the + sign and choose any from the list.
- Fiscal Calendar and Tax Fiscal Calendar
- These two fields above will set up with the same accounting
- Employer Identification Number
- This is to set a main address of this subsidiary. Click edit to fill out an entry field.
Once you have entered and selected the details for in the form, you are now ready to finish the set-up.
Click the Save button found at the upper or lower left of the window. Please see image above for reference.
After you’ve finished setting up, you might want to edit any of the subsidiaries you have created and the values you entered for it.
Additional subtabs are available for you to do the following:
- Define the subsidiary’s address as it should appear on shipping labels.
- Define the address that should appear as a return address.
- Add or remove tax nexuses associated with the subsidiary.
- Set preferences for system email templates, date, time, phone number formats, time zone, default payable account, default advance account, check layout, and CSV files formatting.
- Define alternate subsidiary names to display in other languages.
- View if the date and time fields were modified and by whom.
To start editing, follow these steps:
- Step 1: Go to Setup tab → Company → Subsidiaries.
- Step 2: Click View or Edit to open and modify the information.
- Step 3: Enter additional information to be added related to the subsidiary.
- Step 4: Click Save to confirm the changes.
The following values cannot be edited after you have saved a subsidiary record: Subsidiary of, Elimination, Currency, Edition, and Country. If you have not yet entered transactions for a subsidiary, you can change the base currency.
To recap the guide, just click on the links below.