Question 1
IntermediateSetup and Administration · Subsidiary Hierarchy
A global distributor is implementing NetSuite OneWorld and needs to configure their subsidiary hierarchy. The company has a headquarters in the US, a regional office in the UK, and two sales offices in London and Manchester that report to the UK office. The Controller wants to ensure that financial consolidation happens correctly at the UK level before rolling up to the US. Which subsidiary structure correctly represents this requirement?
Answer and explanation
Correct answer: A
In a OneWorld account, Elimination Subsidiaries are required for consolidation if you need to post elimination journal entries. They must be created as child subsidiaries of the parent node where the elimination occurs. In this hierarchy, an elimination subsidiary under the UK node eliminates transactions between London/Manchester, and one under the US node eliminates between US/UK.
