Foreign Currency Revaluation in Multi-Book Accounting

Note:

Please contact your sales or account representative to find out how to get the Full Multi-Book Accounting feature. The assistance of NetSuite Professional Services or a Multi-Book authorized partner is required to implement this feature. You should consider contacting NetSuite Professional Services or a Multi-Book authorized partner for assistance in setting up the Adjustment-Only Books feature, even though it is not required.

Important:

Multi-Book Accounting, including the Adjustment-Only Books feature, is available only in NetSuite OneWorld.

Foreign currency revaluation extends to secondary pending and active accounting books. Realized gain and loss is calculated for each accounting book. For example, if you have three accounting books, each with a different base currency, and you apply a customer payment to an invoice, the realized gain or loss is calculated three times. The realized gain/loss is as follows:

Sales invoice: £100
Customer payment: £100
Book 1 base currency: British pound (£)
Book 2 base currency: U.S. dollar ($)
Book 3 base currency: euro (€)

Important:

For NetSuite OneWorld accounts that use Foreign Currency Management with the Multi-Book Accounting feature, the exchange rate on a transaction has no impact on standard cost items because the item cost is always derived from the inventory cost revaluation. For additional details, read Revalue Standard Cost Inventory.

Note:

NetSuite calculates the Foreign Currency Balance and the Base Currency Balance on the Currency Revaluation journal entry by generating two revaluations that are equal to the sum of the amount of the transaction. Generating two revaluations permits you to perform separate eliminations. For transaction balances to match, when you filter reports for intercompany transactions the To Subsidiary field cannot be blank.

	Book 1	Book 2	Book 3
Base currency	GBP	USD	EUR
Invoice exchange rate	1	2	1.5
Payment exchange rate	1	1.5	1.6
Realized gain/loss	£0	-$50	€10

The Related Records subtab on the invoice shows the realized gain or loss only for the primary book. To view the realized gain or loss for secondary books, use the list of currency revaluations or the Realized Exchange Rate Gains and Losses Reports.

The open balance revaluation at month end to calculate unrealized gain and loss is also book-specific. Go to Transactions > Financial > Revalue Open Currency Balances and generate the revaluations for each accounting book. The subsidiary selected determines which books are available in the Accounting Book list. The open balance transactions that are included in the revaluation process are determined by the primary book.

Note:

The Currency and Balance columns on the Currency Revaluation (Unrealized Gain/Loss) page display the transaction currency and balance. The Gain/Loss columns display the result in the currency of the accounting book selected.

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