What does the term subsidiary refer to in NetSuite?

In NetSuite, the term "subsidiary" specifically refers to each legal entity within your organization. This means that in a multi-subsidiary setup, different parts of a business can operate independently while still being part of the larger corporate structure. Each subsidiary can have its own financials, reporting, and operations, allowing for greater flexibility and control over various branches of a business.

This structure helps organizations manage their global operations effectively, especially those with diverse legal and regulatory requirements across different regions. Subsidiaries in NetSuite can represent different geographical locations, divisions, or even distinct businesses that are incorporated under the same corporate umbrella, enabling accurate financial consolidation and reporting.

The other options do not align with how subsidiaries are defined within NetSuite. Grouping items for sale relates to inventory management, whereas a division of a company could describe various organizational structures but does not specifically denote legal entity status. The main entity in which operations are conducted would typically refer to the parent company, which is distinct from the individual legal entities categorized as subsidiaries.