I recently had an experience with a company who, already live on NetSuite, approached our team for guidance after a recent purchase by a Private Equity Group. The new structure left them scrambling to meet reporting requirements. In less than three weeks they would be required to report on two separate entities moving forward, however that entity did not exist in their current instance.
They requested that we provide them with a proposal on how to handle the subsidiary split quickly and efficiently.
Our team came up with 4 possible solutions:
- Create a new Subsidiary, as the client already had a OneWorld account.
- Reutilize Locations, as the client was not using the segment.
- Create a Custom Segment.
- Breakout Segmentation, essentially duplicating existing segmentation and denoting the subsidiary with a two letter suffix or number (i.e. Department 1 – Old Subsidiary, Department 1 – New Subsidiary).
Within the proposal, we explored reporting considerations, customer management, fixed asset management, intercompany transactions as well as the impact on all other transaction types. We included a section for project assumptions:
- We did not see any revenue plans, commitments nor arrangements within their production account.
- The existence of any of these revenue components would require further analysis of each solution.
- No historical data was to be updated. Instead, the reporting requirement stated an explicit cut-over date of August 2018 onward.
Ultimately, we proposed all four solutions, but our most effective recommendation was to leverage native functionality within OneWorld and create a new Subsidiary.
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By: Kendall Ashe