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I am in the process of trying to merge 1 subsidiar...
# accounting
c
I am in the process of trying to merge 1 subsidiary with another. What we are currently planning to do is create a JE to zero out subsidiary A and then create another JE to build it back up in another subsidiary B. Is that the best way to go about this or is there a simpler way?
k
That's really the only way.
Of course - you also have to migrate open AR/AP to the new subsidiary as well.
and Inventory.
s
can you do a subsidiary heirarchy modification?
i mean for your workcase
c
We aren't really changing the hierarchy. We have 2 subsidiaries on the same level and now it just makes sense to have 1
It's pretty small list of accounts so it seems like a JE may be the easiest way
we were just a little concern about the consolidated exchange rates
s
I hope i dont sound dumb, but like in my mind, if either one company bought another it's probably never 5050 exactly?
so then it whoever is the greater 50 will hold the other 50
2 buying to 1 sounds good on text level, but i'm trying to be an ass and ask if thats how it is on the contract level that was signed
c
I am not sure what you are referring to.
k
did your legal structure change?
🙌 1
is what he's referring to.
s
@KevinJ of Kansas to the save i feel like i'm just not legible
and not because @Chris you explained badly just i'm just terrible
c
I don't believe so . Both subsidiaries are child subs and one was created for an acquisition and then another was as a new business unit in the same region. So I believe the accounting teams view is they should be merged together now.
s
@Chris I think legally you do need to speak with the accounting team to understand what they're doing legally. and that'll help you understand how NS is structured and how you should formulate it
because even on the high level with what you're saying there is more than one way to handle this
and all have different legal outcomes, if you like, when you/your client gets audited
it's very different
c
ok I spoke with the team and they just said the two entities (Child Sub A and Child Sub B) are legally being merged with Child Sub B being the remaining entity. Both subs are in the same country and currency.
k
In that case - the best answer is still to do a JE to kill off Sub A, JE to bring it into Sub B - and then import open AR and AP and Inventory and open SO's/ PO's into Sub B - while reversing the GL impact of the posting transactions to make the total flesh out correctly.
I wouldn't really bother doing a subsidiary hierarchy restructure - because you're probably going to start using the same bank accounts for both subsidiaries, so may as well bring all the operations in together.
if they were going to continue operating independently - you could potentially get away with just using the subsidiary hierarchy tool - but I would probably just suck it up and make the migration happen otherwise.
c
Yea that is what I was thinking. ok thank you
I actually think it's easier since we didn't process transactions out of this subsidiary. It was mainly built up with JEs so I think it's mainly just about moving balances over
k
Seems right to me.
j
note that if the parent subsidiary has a different base currency then you will get different results because they will be using different translation rates (assuming you're using auto-calculation). You might want to use manual calculation for the sub going dormant to prevent this
c
I spoke with a Netsuite consultant about this and he recommended creating a new period and marking it as an adjustment so we can adjust the consolidated currency rates
j
oh that's interesting. our netsuite consultant never suggested that! We just used the elimination entity of the parent company to store permanent differences (we were doing an erp migration and needed to match to reported group numbers)
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