In NetSuite OneWorld, a subsidiary represents a separate legal entity included in the consolidated financial structure. The Help Center describes a subsidiary as “a company, partnership, or other legal entity that issues its own financial statements and is consolidated with the parent.” A wholly-owned company therefore exemplifies a subsidiary because it is a distinct legal company that rolls up to the parent for reporting. By contrast, divisions, warehouses, and clearing accounts are modeled in NetSuite as departments, locations, or general-ledger accounts, not subsidiaries.

A. Direct sales division – modeled as a Department/Class; lacks separate legal status.

B. Clearing account – a balance-sheet GL account, not an entity.

C. Warehouse – represented as a Location; physical site, not a legal entity.

1. NetSuite Help Center

“Subsidiaries Overview

” OneWorld > Subsidiaries

para. 1-2 (accessed 20 Aug 2025).

2. NetSuite Help Center

“Creating Subsidiaries

” OneWorld > Subsidiaries

step 1 note: “Subsidiaries must be separate legal entities

e.g.

wholly owned companies.”

3. NetSuite Help Center

“Departments

Classes

and Locations

” Accounting > Classification

para. 3 – contrasts divisions/warehouses with subsidiaries.