[Tsogzolmaa]

I am building consolidated financial reports of subsidiaries. Our group owns multiple subsidiaries, some of which are only partially-owned. Our deadline is fast approaching, but we are blocked. How do I build consolidated financial reports that only consider the portion?
This is a cached copy. Click here to see the original post.

[Tsogzolmaa]

RE: Group Consolidated Financial Report for 40%-owned Subsidiary

NS Partner said NS didn’t support consolidating reports of such group company structure. But I don’t believe it. He suggested 2 workarounds. First, use a formula in Financial Report Builder. Second, use Segmentation. I don’t like these approches as they are hacks. Our group company structure is nothing unusual. There’s got to be a way. Please advise.

[Olivier Gagnon NC]

RE: Group Consolidated Financial Report for 40%-owned Subsidiary

Yes, set up an Elimination company and write off 60% the value of your company on it. Run a Trial Balance for the partially-owned sub, export to Excel, calculate the 60% write-off, and import that as a Journal to your elimination sub.

Note that this will only show the total, summed consolidated value. If you use the breakdown by subsidiary, your partially owned subs will show full value, which would be incorrect

Segmentation and formulas won’t help you, no. Not in a financial report. The scope of what you need done is too complex for what they are able to do.

I’m surprised the question of partial ownership is only coming up now. Knowing OneWorld has no great way to deal with it, this is usually an important and common pre-sales question, and work-arounds should have been planned from the beginning.

[Tsogzolmaa]

Thank you Oliver!

[lopezk]

Hello, I would like to ask if there is a way to set-up partially owned subsidiary in NetSuite? Are they maintained in the same manner as maintaining a wholly-owned subsidiary?

[Olivier Gagnon NC]

While it’s funny someone with the title of NS Employee is asking this, the “modern” answer is that partial ownership can now be managed via Multi-Book Accounting. So, no, it is not exactly maintained in the same way. The setup and maintenance of the Multi-Book Accounting would require additional effort.

However, it also remains an option to set up your elimination in a way to as describe in my earlier post from a few years past, is that works for you. Auto-Elimination however still won’t work to handle this, so you’ll need to manually eliminate.

[Author]

Posts