Organisations today demand financial management solutions that are flexible enough to accommodate dynamically changing business needs. NetSuite ERP enables them to manage IT costs, optimize accounting efficiency, streamline order management and procurement processes, eliminate manually-intensive spreadsheet-based reporting, and improve employee productivity.
NetSuite OneWorld further increases these capabilities and benefits by enabling multiple legal entities in different countries with different teams to all be run within a single system in real time. This gives management a consolidated view of operations and real-time visibility across the whole organization. And, with a cloud-based system, users can do all this from anywhere across the globe.
Number of countries deployed to: 200+
Number of languages supported: 27
Number of currencies updated via daily feeds: 190+
Localised bank payment formats supported: 90+
Countries supporting localised tax reporting: 100+
OneWorld is a different NetSuite license allowing for multiple subsidiaries in the same country; additional licenses can be purchased for additional countries.
Key features of OneWorld include:
- Automated consolidation and elimination journals via close checklist
- Subsidiary close management
- Reporting flexibility / multibook functionality
- Real time global business insight and reporting capability
- Support consistent processes and reporting across countries
- Enable / configure certain features by subsidiary
Managing an acquisition strategy with OneWorld requires detailed review of the following requirements for each subsidiary:
- Business processes
- Tax and local reporting requirements
- Chart of accounts
- Approval processes
- Currencies required – base and reporting
- Classifications – departments / locations / classes
- Additional NetSuite functionality for different business types e.g. Advanced inventory etc
- Intercompany relationships and shareholdings
Base currency vs group reporting currency
When subsidiaries have different base currencies, OneWorld will automatically perform the foreign currency translation on the consolidated financial statements. A new object ‘Consolidated Exchange Rates’ will store current, average, and historical rates for each accounting period and will be used for the translation.
the examples shown below, the Denmark and Germany subsidiaries have base currencies of DKK and EUR, respectively, but are both held under the UK parent company. When running a financial report at the consolidated level, NetSuite automatically translates all balances into GBP, based on the accounting period’s consolidated exchange rates.
Intercompany eliminations can be automated with OneWorld through the use of intercompany accounts, journals, customers, and suppliers. When transactions are recorded using these objects, NetSuite will eliminate these balances as part of the ‘Run Intercompany Eliminations’ step in the close checklist.
Each level of consolidation in the subsidiary hierarchy will have an elimination subsidiary. All elimination entries will be recorded in this subsidiary. Users can also book manual journal entries into the elimination subsidiary if needed.
Ability to limit users and roles to specific subsidiaries
Users can be granted access to their own subsidiary only, selected subsidiaries, or all subsidiaries. They can also be restricted to certain subsidiaries but be allowed view access of all other records. This functionality can be useful in protecting sensitive information; for example, if different accounts personnel handle different subsidiaries, they can be limited to only the relevant information.
Multi-subsidiary customers and suppliers
By enabling multi-subsidiary customers and/or suppliers, entity records can be shared across subsidiaries to simplify recordkeeping and prevent duplication. This also allows a full view of the customer or supplier’s interactions with the whole organization, not just a specific legal entity.
With OneWorld comes the additional feature of Multibook Accounting, which enables users to run and report on multiple sets of accounting books in parallel within NetSuite. This is beneficial for organizations with:
- Different management and financial reporting requirements (e.g. local vs group)
- Different regulatory reporting requirements
- Different accounting treatments (e.g. local vs group revenue recognition or tax treatment)
Different posting rules for secondary book(s) can be configured using the chart of account mapping. This mapping defines that transactions posting to Account A under the primary book will always book to Account B under the secondary book. Accounts that are not specifically mapped will post to the same account under all sets of books.
Revenue recognition, expense amortization, and depreciation are other areas where different accounting rules can be configured for different books. In addition to rule-based configuration, book-specific journal entries allow the user to record certain transaction to a single book only.
Finally, when running reports with multi-book accounting, there will be a new option to select the Accounting Book. This is available on many report types, including financial, revenue, inventory, receivables, and payables. There are also multi-book financial statements, which allow you to compare the balances between two sets of books.
Migrating to OneWorld
For organisations currently using NetSuite without OneWorld, migrating to OneWorld means moving to a new NetSuite environment. The Implementation of this generally takes 4-6 weeks to copy setup, customisations and test in the new environment before the existing production database is moved into the new OneWorld environment. Contact your Liberate IT Relationship Manager to arrange a call with one of Liberate I.T’s experienced Implementation Consultants to discuss in more depth what this project entails and the approximate timeline and effort required.
NetSuite OneWorld addresses the complex multinational and multi-company needs of organizations. It enables businesses to adjust for currency, taxation and legal compliance differences at the local level, with regional and global business consolidation and roll-up. Business leaders get unprecedented visibility of their business worldwide in real-time, ensuring consistent, compliant management across the organization, locally and globally. In addition to providing global accounting/ERP solution, NetSuite OneWorld offers global Customer Relationship Management (CRM), ecommerce and Professional Services Automation (PSA) solutions, enabling multinational businesses to align operations across finance, marketing, commerce, sales and service. Refer to the NetSuite OneWorld datasheet here for more information.