Revaluation and Multi-Book Accounting
If you use NetSuite OneWorld and the Foreign Currency Management and Multi-Book Accounting features, note the following. The exchange rate on a transaction has no impact on standard cost items. The item cost is always derived from the inventory cost revaluation.
When using the Multi-Book Accounting feature, for inventory costing to calculate without errors, submit an inventory cost revaluation after each new book is created. This revaluation must have a transaction date equal to the effective date of the new book. Note that the standard costs for other books will be impacted by the inventory cost revaluation unless you do the following. Before running the inventory cost revaluation, the exchange rates for other books must be the same rates as of the last inventory cost revaluation. These actions are required because each book has its own location standard cost for each standard cost item. The location standard cost must exist in each book for transactions being processed in each book to post variances for that book. A single standard cost cannot be used across all books for posting purposes because each book might be in a different currency. The inventory cost revaluation assigns a standard cost to an item. Therefore, the exchange rate for the day is used to calculate the standard cost for books in different currencies. From that point forward, the daily exchange rate does not affect the standard cost in each book. For more information, see Foreign Currency Revaluation in Multi-Book Accounting and Multi-Book Accounting Overview.