Rounding Gain/Loss
NetSuite calculates and posts exchange rate gain or loss (variance) when you apply a payment or credit to an invoice, vendor bill, or journal entry that functions as a bill or invoice. The invoice, vendor bill, or journal entry is the source transaction. The variance occurs when the exchange rate on the source transaction differs from the exchange rate on the payment. The payment transaction can be a payment, credit memo, customer deposit, or journal entry.
After realized gain or loss calculation, a small difference sometimes remains between the posted base currency source transaction amount and the posted payment transaction amount plus variance. This small difference is due to rounding of the variance or adding together base currency amounts that were calculated separately. In a currency with a decimal precision of 2, for example, a difference of 0.04 or less is considered small.
To remove the small difference in the accounts payable or accounts receivable account between the source and the payment, NetSuite creates another currency revaluation transaction. This currency revaluation transaction record is called Currency Revaluation (Rounding Gain/Loss). These transactions post to the Rounding Gain/Loss account and either an accounts payable or an accounts receivable account.
You can edit rounding revaluation transactions if the period is open. The fields you can change are Posting Period, Memo, and any fields in the Classification section. You cannot delete rounding revaluation transactions. Foreign Currency Variance Mapping is not available for rounding variance types.
To view currency revaluation transactions for rounding, go to Transactions > Financial > Revalue Open Currency Balances > List. In the default list view, you can identify rounding transactions by the account (Rounding Gain/Loss) and amount (very small).
Two situations may cause the base currency amount for the source transaction to differ slightly from the base currency for the payment plus the variance. First, different exchange rates for the source and payment may cause rounding differences.
Second, even when the exchange rate is the same, multi-line source transactions may not exactly match payments when both are converted to base currency. Multi-line transactions are converted to base currency line by line for posting to income or expense accounts (or deferred revenue or deferred expense). The base currency amount posted to accounts receivable or accounts payable is the sum of the base currency lines. Applied payments convert the total to base currency and post to accounts receivable or accounts payable.
The following topics include examples of rounding gain/loss: