Subsidiary Budgeting Scenario
The following scenario provides an example of subsidiary budgeting in NetSuite OneWorld.
The company Wolfe Consolidated includes the subsidiaries Wolfe U.S. and Wolfe U.K. Wolfe Consolidated is the root-parent subsidiary. Because it is located in the United States, Wolfe Consolidated uses the U.S. dollar (USD) as its currency. Wolfe Consolidated has a subsidiary in another country (U.K.) that uses a different currency (British pounds or GBP). The budgets and reports of actual results for Wolfe U.K. can be set up using either GBP or USD.
The budgeting options for Wolfe Consolidated are:
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Budget and report actual results for the three subsidiaries (Consolidated, U.S., and U.K.) in USD.
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Budget and report actual results for Wolfe Consolidated and Wolfe U.S. in USD, but use GBP for Wolfe U.K. This option gives U.K. managers the ability to budget and report actual amounts in their local currency. Wolfe Consolidated managers still see subsidiary and consolidated budgets in USD.
For example, you could create a Wolfe U.K. budget in GBP that would consolidate to USD. If the currency consolidated exchange rate is 1.50 USD to 1.00 GBP, then the results are as follows: