Multi-entity accounting involves managing the finances of multiple legal entities within a single system. As a company grows through acquisitions or establishes subsidiaries in new markets, complexity increases rapidly.
Each entity may have its own requirements regarding currency, tax regulations, and local reporting. Without a unified business system, it becomes time-consuming to compile consolidated financial statements and ensure that all transactions are consistent across companies.
A modern ERP system like Oracle NetSuite makes it possible to manage all companies within the same database. This creates a unified structure that gives you immediate insight into the entire group’s finances.
NetSuite is built from the ground up to handle multi-company structures. Each subsidiary, branch, or business unit is created as a separate entity with its own unique chart of accounts, currency, and tax configuration.
Although each entity has its own set of rules, they all share the same underlying platform. This means that group management can view consolidated figures in real time, without having to wait for manual reports from each company.
When one company in the group sells goods or services to another, intercompany transactions are created. In NetSuite, these are handled automatically through intercompany functionality.
The system generates matching entries in both companies and automatically eliminates them during consolidation. This eliminates the need for manual reconciliation and reduces the risk of errors in the consolidated financial statements.
Companies with operations in multiple countries need to manage different currencies in their daily accounting. NetSuite supports currencies and automatically updates exchange rates.
When you consolidate the results from a Norwegian subsidiary into the Swedish parent company’s financial statements, all amounts are translated according to the exchange rates you’ve defined. Currency translation differences are handled according to the accounting principles you choose—GAAP, IFRS, or local regulations.
For Nordic companies with subsidiaries in Sweden, Norway, Denmark, and Finland, this results in significant time savings. xperitus helps you configure these currency settings to align with your group policy.
One of the biggest advantages of NetSuite for multi-entity structures is the ability to generate consolidated reports in real time. Instead of waiting for monthly financial statements from each entity, the CFO can view up-to-date figures for the entire group at any time.
Reports can be filtered by company, region, or business unit. You can also compare results across entities to identify which ones are performing best and where there is room for improvement.
Each country has its own requirements for accounting, VAT, and reporting to authorities. NetSuite has built-in support for local tax rules and reporting formats in over 190 countries.
For Swedish companies, this means that SIE exports and VAT reporting work directly within the system. Norwegian subsidiaries receive support for SAF-T, while Danish entities can manage their specific requirements for digital accounting records.
This local customization takes place without compromising your global group overview. You get the best of both worlds—local compliance and centralized control.
NetSuite is ideal for companies planning to grow through acquisitions or international expansion. If you currently manage multiple companies in separate systems and find that the consolidation process takes too much time, that’s a clear sign.
Here are a few situations where NetSuite might be the right choice:
xperitus has completed implementations for several corporate groups with operations in the Nordic region and Europe. Together with you, we analyze your current structure and configure NetSuite to support your specific multi-entity accounting requirements.
NetSuite provides growing companies with a scalable platform for managing multi-entity structures. With automated handling of intra-group transactions, support for multiple currencies, and consolidated real-time reporting, the finance department gains tools that simplify day-to-day operations.
For Nordic companies, the ability to combine local regulatory compliance with centralized group control is a key advantage. xperitus is here to help you evaluate whether NetSuite is the right fit for your specific group structure. Feel free to contact us to discuss your needs.
There is no technical limit to the number of legal entities in NetSuite. You can add new subsidiaries, branches, or business units as needed. xperitus helps you structure the hierarchy so that it reflects your actual group structure.
Yes, each entity in NetSuite can have its own chart of accounts tailored to local requirements. During consolidation, the accounts are automatically mapped to the group’s common structure, ensuring accurate reports without manual effort.
NetSuite automatically restates all transactions into the group’s functional currency based on the exchange rates you define. You can choose to use period rates, average rates, or daily rates depending on your accounting policy. xperitus will configure these settings for you.
Yes, NetSuite automatically identifies and eliminates intra-group transactions during consolidation. The system creates matching entries in the companies involved and removes them from the consolidated reports to avoid double counting.
The implementation time depends on the number of entities and the complexity of your structure. With xperitus as your partner, we work methodically to get your group up and running as quickly as possible, without compromising the quality of the configuration.