OneWorld is NetSuite's name for its multi-subsidiary consolidation module, and if you are not using a OneWorld account, feel free to skip this chapter. Consolidation is the accounting treatment for multiple independent business units that are owned by the same holding company. The business units are referred to as subsidiaries. These subsidiaries can operate in the same country as the holding company or in different countries, which adds the complication of operating in multiple currencies.
Big deal, you might say. Can't we just treat the subsidiaries as independent and create the financial statement for each subsidiary? We could then simply add up the results of all the subsidiaries to arrive at the consolidated income statement. The problem is that a significant number of transactions may be between different subsidiaries, where one subsidiary purchases goods...
