ANS-0437 · ONEWORLD & MULTI-SUBSIDIARY
What Are the Subsidiary Limits in NetSuite and How Are They Managed?
Understanding NetSuite's licensed and system-imposed subsidiary limits is crucial for effective multi-subsidiary management.
Short answer
NetSuite has two subsidiary limits: a licensed limit, adjustable via sales, and a system limit of 250 subsidiaries, including the root. Elimination subsidiaries do not count towards either limit. Inactive subsidiaries' historical data is available for reporting, and their balance sheets are often zeroed out as an accounting practice.
Scenario
Organizations utilizing NetSuite's OneWorld feature often need to understand the constraints on the number of subsidiaries they can create. This includes clarifying how different types of subsidiaries, such as elimination or inactive ones, impact these limits and data retention.
Solution
NetSuite imposes two distinct types of limits on the number of subsidiaries an organization can manage:
Licensed Limit
This limit is based on the number of subsidiary licenses purchased. Organizations can increase this limit by contacting NetSuite sales.
System Limit
NetSuite has a hard system limit of 250 subsidiaries, which includes the root subsidiary. If an organization requires more subsidiaries than this system limit, NetSuite Support can assist with initiating the process to potentially raise this limit.Regarding specific subsidiary types:Elimination subsidiaries do not count toward either the licensed limit or the system limit.Inactive subsidiaries do not count toward the licensed limit. Their historical data remains available for reporting, including consolidated reports. While inactivating a subsidiary does not automatically zero out its balance sheet, it is a common accounting practice to do so.
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