OneWorld Deep Dive

Overview & When to Use OneWorld

NetSuite OneWorld is the multi-subsidiary edition that enables global organizations to manage multiple legal entities, currencies, and tax jurisdictions within a single NetSuite instance.

OneWorld vs. Standard NetSuite

When to Use OneWorld

Subsidiary Limits

Subsidiary Hierarchy Planning

Your subsidiary hierarchy is the foundation of OneWorld. Plan carefully before creating records—restructuring after the fact is difficult and risky.

Hierarchy Concepts

• Root Subsidiary: The highest-level entity in your account. All other subsidiaries are children of root (directly or indirectly).
• Parent Subsidiary: Any subsidiary with child subsidiaries beneath it.
• Child Subsidiary: A subsidiary that belongs to a parent. Each child must specify its parent at creation.
• Elimination Subsidiary: A special "dummy" subsidiary used only for elimination journal entries during consolidation.

Sample Hierarchy Diagram

Hierarchy Best Practices

• Diagram First: Create a visual diagram of parent-child relationships before touching NetSuite.
• One Elimination Per Parent: Create an elimination subsidiary as a child of each parent that has children.
• Match Elimination Currency: Elimination subsidiaries should use the same base currency as their parent.
• Create Top-Down: Build the hierarchy starting at root, then first-level children, then second-level, etc.
• Legal Entity Alignment: Each operating subsidiary should represent a distinct legal entity.

Setup & Configuration

Step-by-step guidance for enabling OneWorld and creating your subsidiary structure.

Prerequisites

• Administrator role access
• Completed hierarchy diagram
• Base currency defined for each subsidiary
• Tax nexus identified for each subsidiary
• Chart of accounts reviewed for multi-subsidiary use

Enabling OneWorld

Path: Setup > Company > Enable Features > Company subtab

1. Check "OneWorld" under Company features. This is an irreversible action.
2. Existing data becomes root subsidiary. All pre-existing transactions, customers, vendors, and items are assigned to the root.
3. Save and refresh. The Subsidiaries menu will now appear.

Creating Subsidiary Records

Path: Setup > Company > Subsidiaries > New

Creating Elimination Subsidiaries

1. Create as child of each parent that has operating subsidiaries beneath it.
2. Check "Elimination" checkbox. Once saved, this cannot be unchecked.
3. Use same base currency as parent. Elimination entries will be in this currency.
4. No transactions except eliminations. These subsidiaries cannot have normal transactions.

Multi-Currency Configuration

OneWorld supports 190+ currencies with automatic exchange rate updates. Each subsidiary has a base currency, and transactions record both local and base amounts.

Currency Concepts

• Base Currency: The primary currency of a subsidiary. All reports for that subsidiary use this currency.
• Transaction Currency: The currency in which a specific transaction is conducted.
• Consolidated Currency: The currency used for consolidated group reporting (typically root subsidiary's base currency).

Setting Up Currencies

Path: Lists > Accounting > Currencies

Exchange Rate Management

Path: Lists > Accounting > Currency Exchange Rates

• Current Rate: Used for Balance Sheet items (assets, liabilities)
• Average Rate: Used for Income Statement items (revenue, expenses)
• Historical Rate: Used for equity accounts and specific fixed assets

Currency Revaluation

Foreign currency balances must be revalued at period end to reflect current exchange rates. This creates unrealized gain/loss entries.

Path: Transactions > Financial > Revalue Open Foreign Currency Balances

• Run before calculating consolidated balances
• Creates adjustment journal entries
• Posts to Unrealized Gain/Loss account
• Part of period close checklist

Intercompany Transactions

Intercompany transactions occur when one subsidiary sells to, purchases from, or transfers funds to another subsidiary within the same OneWorld account.

Types of Intercompany Transactions

Intercompany Account Setup

Path: Lists > Accounting > Accounts > New

Create dedicated intercompany accounts for tracking:

Creating Intercompany Sales Orders

1. Create Sales Order in the selling subsidiary with the buying subsidiary's customer record.
2. System auto-creates linked PO in the buying subsidiary when Automated Intercompany Management is enabled.
3. Fulfill and Invoice the sales order. Linked vendor bill is created in the buying subsidiary.
4. Elimination marking happens automatically for marked intercompany accounts.

Advanced Intercompany Journal Entries

Path: Transactions > Financial > Make Intercompany Journal Entries

Use for transactions that don't flow through normal sales/purchase cycles:

• Shared service allocations (IT, HR, Finance)
• Management fees
• Royalty payments
• Cash pooling movements

Intercompany Eliminations

Eliminations remove intercompany balances and transactions from consolidated financial statements, preventing double-counting of internal activity.

Why Eliminations Matter

When Subsidiary A sells $100,000 to Subsidiary B, this creates:

• $100,000 revenue in Sub A
• $100,000 expense in Sub B
• $100,000 receivable in Sub A
• $100,000 payable in Sub B

Without eliminations, consolidated statements would show $100,000 of revenue and expense that didn't come from external customers. Eliminations zero out these internal balances.

How NetSuite Handles Eliminations

1. Transaction lines marked for elimination when they use accounts flagged as intercompany.
2. Period Close Checklist includes "Eliminate Intercompany Transactions" as the final task.
3. Elimination journal entries are created automatically, posting to the appropriate elimination subsidiary.
4. CTA-E account (Cumulative Translation Adjustment - Elimination) captures FX differences in eliminations.

Setting Up Accounts for Elimination

Path: Lists > Accounting > Accounts > [Edit Account]

• Check "Eliminate Intercompany Transactions" on intercompany accounts
• System will automatically create elimination entries for transactions using these accounts
• Both sides of intercompany transaction must use elimination-enabled accounts

Running Eliminations

Path: Transactions > Financial > Eliminate Intercompany Transactions

Common Elimination Issues

• Imbalanced IC balances: IC Receivable in Sub A doesn't match IC Payable in Sub B due to timing or errors
• Missing elimination flag: Accounts not marked for elimination won't be processed
• Currency differences: FX rate changes between transaction date and elimination date
• Partial payments: IC invoices partially paid create complex elimination scenarios

Consolidation & Reporting

OneWorld provides real-time consolidated financial reporting across all subsidiaries, with automatic currency translation and elimination handling.

Consolidation Process

1. Calculate Consolidated Balances - Translates subsidiary balances to consolidated currency using appropriate exchange rates.
2. Revalue Foreign Currency - Adjusts open balances for current exchange rates (creates unrealized gain/loss).
3. Run Eliminations - Creates elimination entries for intercompany transactions and balances.
4. Generate Consolidated Reports - Run financial statements at parent level to include all children.

Consolidated Financial Reports

Path: Reports > Financial

Report Filters for OneWorld

• Subsidiary: Select individual subsidiary or parent (includes children)
• Include Subsubsidiaries: Yes/No to include grandchildren
• Include Eliminations: Yes/No to include elimination entries
• Currency: Subsidiary base currency or consolidated currency

Translation Adjustments

When subsidiary base currency differs from consolidated currency, translation adjustments are created:

• CTA Account: Cumulative Translation Adjustment captures equity impact of FX translation
• CTA-E Account: CTA-Elimination captures FX impact in elimination entries
• Translation Gain/Loss: Income statement impact of FX changes (if applicable)

Multi-Book Accounting

Multi-Book Accounting allows maintaining multiple sets of accounting records from a single set of transactions. This is essential for dual GAAP/IFRS reporting or statutory vs. management reporting needs.

When to Use Multi-Book

• Dual Reporting Standards: Report under both US GAAP and IFRS from same transactions
• Statutory vs. Management: Local statutory books and global management books
• Different Charts of Accounts: Different account structures for different purposes
• Different Base Currencies: Functional currency differs from reporting currency

Multi-Book Capabilities

Setting Up Secondary Books

Path: Setup > Accounting > Accounting Books > New

1. Enable Multi-Book feature under Setup > Company > Enable Features > Accounting
2. Create Accounting Book record with name, base currency, and applicable subsidiaries
3. Map accounts if using different chart of accounts for this book
4. Configure adjustment entries for differences between books (depreciation, revenue recognition, etc.)

Book-Specific Adjustments

Some transactions require different treatment between books:

• Depreciation: Different useful lives or methods (straight-line vs. declining balance)
• Revenue Recognition: Different timing rules (point-in-time vs. over time)
• Lease Accounting: Different treatment under ASC 842 vs. IFRS 16
• Inventory Valuation: FIFO vs. weighted average for different books

Role-Based Access by Subsidiary

OneWorld enables granular access control where users can be restricted to specific subsidiaries, ensuring data security across the organization.

Subsidiary Restrictions on Roles

Path: Setup > Users/Roles > Manage Roles > [Role] > Subsidiaries subtab

• All Subsidiaries: User can access data across entire organization
• Specific Subsidiaries: User can only see/edit data for selected subsidiaries
• Include Children: Access to selected subsidiaries and their children

Role Design Patterns

Best Practices

• Least Privilege: Grant minimum necessary subsidiary access
• Role Cloning: Clone existing roles for subsidiary-specific variants
• Consolidation Roles: Separate roles for viewing consolidated vs. subsidiary-level data
• Test Thoroughly: Verify users can only see/access intended subsidiaries

Common Permission Combinations

Common Gotchas & Troubleshooting

Lessons learned from real OneWorld implementations to help you avoid common pitfalls.

Pre-Implementation Gotchas

• Irreversible Upgrade: OneWorld cannot be disabled once enabled. Test thoroughly in sandbox first.
• Existing Data Assignment: All pre-existing data goes to root subsidiary. Plan data migration carefully.
• Hierarchy Changes: Modifying subsidiary hierarchy after setup can corrupt historical data. Plan hierarchy completely upfront.
• Currency Lock-In: Subsidiary base currency cannot change after transactions exist.

Transaction Gotchas

• Subsidiary Mismatch: Customer/vendor subsidiary must match transaction subsidiary (or be global).
• IC Account Marking: Forgetting to mark accounts for elimination results in inflated consolidated balances.
• Transfer Pricing: Intercompany pricing must be documented and defensible for tax purposes.
• IC Imbalances: Timing differences between IC invoices/bills create elimination issues.

Period Close Gotchas

• Sequence Matters: Must revalue currency, then calculate consolidated balances, then eliminate. Wrong order = wrong numbers.
• Locking Periods: All child periods should be closed before parent period close.
• FX Rate Timing: Ensure exchange rates are entered for period end date before consolidation.

Troubleshooting Guide