Creating Subsidiary Records

Note:

For information about defining general company settings other than subsidiaries, see Configuring Company Information.

You should create subsidiary records in a top-down fashion. Begin with the root subsidiary, then all of its child subsidiaries, then the next level of subsidiaries, and so on. This order is best practice because you must define the parent for each child subsidiary when you create the subsidiary record.

You should create a subsidiary record for each legal entity in your organization. In addition, you should create a separate elimination subsidiary record as a child of each parent subsidiary.

When you create a subsidiary, the system creates a Subsidiary Settings page for that subsidiary. The subsidiary record has a one-to-one relationship with its Subsidiary Settings page. You can access the Subsidiary Settings page from the Subsidiary Settings Manager page. For information about Subsidiary Settings Manager, see Subsidiary Settings Manager. When you delete a subsidiary record, the system deletes its corresponding Subsidiary Settings page.

Important:

If you upgrade your account to NetSuite OneWorld, the preexisting data is used for the root subsidiary.

To create a subsidiary record:

  1. Go to Setup > Company > Subsidiaries > New.

    Important:

    You cannot change the values or states of some fields after you save the subsidiary record the first time. For a list of fields that you cannot change on the parent or child subsidiaries, see Editing Subsidiary Records.

  2. Complete the following header information:

    1. Check the Subsidiary is Inactive box if this subsidiary is no longer active or used in your account.

      Inactivated subsidiaries no longer show in the Subsidiary field on records and transactions unless they are currently attached to a record. Websites of inactive subsidiaries are no longer available online.

    2. Enter up to 83 alphanumeric characters for the name of the subsidiary.

    3. Select the parent subsidiary in the Subsubsidiary of field.

    4. Check the Always Display Subsidiary Name box to display only the subsidiary name with your role in the upper right corner of a page. When you log in to an external account, the dashboard displays only the logo of the subsidiary, not the parent company logo. External accounts include the employee center, vendor center, or customer center.

      Clear this box to display both the parent and the subsidiary name in your account.

    5. In the Subsidiary Logo (Forms) field, select the logo image to use on all forms by this subsidiary.

      Click New to upload a logo. Logos must be in JPG or GIF format.

      Note:

      The logo you select does not affect the pages in your account. The logo that displays on pages is selected in the Subsidiary Logo (Pages) field.

    6. In the Subsidiary Logo (Pages) field, select the logo image to display on all pages for this subsidiary.

      Click New to upload a logo. Logos must be in JPG or GIF format.

      Note:

      The logo you select does not affect printed forms. The logo on printed forms is selected in the Subsidiary Logo (Forms) field.

    7. Enter the URL of this subsidiary's website.

    8. If you use autogenerated numbering and you also want to use subsidiary-specific numbering for documents, enter a prefix to identify this subsidiary in document numbers.

      You can enter up to 8 alphanumeric characters.

      Note:

      You must also enable subsidiary-specific transaction numbering at Setup > Company > Auto-Generated Numbers. For more information, see Using Subsidiary-Specific Transaction Auto-Numbering.

    9. Select the state or province, and country.

    10. Enter the legal name of this subsidiary, as it appears on tax documents.

    11. Enter a return email address.

      You can specify that email forms generated in NetSuite are sent using this email address. This is useful when you have many subsidiaries and you want customers or vendors to reply using an email address from the appropriate subsidiary. For information about setting email preferences, see Setting Email Preferences.

    12. Enter a fax number.

    13. Check the Elimination box if this subsidiary record is used for only intercompany journal entries that reverse transactions between subsidiaries.

      For information about elimination subsidiaries, see Elimination Subsidiaries.

      For information about intercompany journal entries, see Making Intercompany Journal Entries.

    14. If this subsidiary uses multiple languages, select the default language for NetSuite users in this subsidiary.

      Note:

      You can enable multiple languages in the International section on the Company subtab at Setup > Company > Enable Features.

      Individual users can choose their language at Home > Set Preferences.

    15. If this subsidiary uses multiple calendars, select the calendars to roll up accounting and tax periods.

      The fiscal calendar determines the start date for the accounting year.

      The tax fiscal calendar determines the start date for the tax year.

      Note:

      You can enable multiple calendars in the Advanced Features section on the Accounting subtab at Setup > Company > Enable Features.

    16. Select the base currency used by this subsidiary.

      This value can be the same as or different from the base currency of the parent.

      Elimination subsidiaries default to the base currency of the parent subsidiary.

      Note:

      The NetSuite Edition used by the subsidiary is automatically provided based on the country entered for the subsidiary address.

      The following subsidiaries are available:

      AU - NetSuite Australia

      CA - NetSuite Canada

      XX - NetSuite International (This edition is not country-specific. It is used for countries that do not have their own edition. The underlying tax engine must be customized for each country.)

      JP - NetSuite Japan

      UK - NetSuite UK

      US - NetSuite US

    17. Enter the appropriate tax identification numbers for this subsidiary.

      The fields that display depend on the country entered for the address.

    18. If use the EU One Stop Shop feature:

      1. Check the OSS Applies box if the One Stop Shop (OSS) VAT scheme applies to this subsidiary.

      2. In the OSS Nexus field, select the EU member state (tax nexus) where you are registered for OSS VAT returns.

    19. Check the GL Impact Locking box to automatically generate journal entries when changes are made to a transaction that posted to the general ledger.

      When you check this box, transactions that post to the general ledger display the GL Impact subtab. This subtab records the general ledger impact of this transaction and any modifications.

      You can check and clear this box, as required.

      Note:

      This option is visible only when the GL Audit Numbering feature is enabled. For more information, see GL Audit Numbering and GL Impact Locking.

    20. The read-only Enable Period End Journal Entries box reflects the state of the feature relative to this subsidiary. The Period End Journal Entries feature can be enabled for the primary accounting book only through the Subsidiary Settings Manager page. For information about the Subsidiary Settings Manager page, see Subsidiary Settings Manager.

    21. Click Edit next to the Address field. Complete the fields, as required, and then click OK.

      Note:

      The address form displayed in the popup may vary according to the country where the subsidiary is located. It also depends on the custom address forms defined in your account. For more information, see Customizing Address Forms.

  3. Click Save.

    Warning:

    Saving a new subsidiary requires system processing that can be time consuming. Do not refresh the page during save. Doing so may stop the save process and display multiple error messages.

    Important:

    If the new subsidiary exceeds the number of purchased country licenses, an error message appears. This message prompts you to inactivate an existing subsidiary, or contact your account manager to purchase additional licenses.

Related Topics

General Notices