Foreign Currency Variance Mapping
The Foreign Currency Variance Mapping feature enables you to create foreign currency variance posting rules that determine the accounts into which foreign currency variances are posted. If your NetSuite implementation has no variance posting rules, NetSuite posts the gains and losses from fluctuations in foreign exchange rates to default system-generated accounts. For a listing of the default system-generated accounts, see Foreign Currency Revaluation.
Some cases in which you might want to create a foreign currency variance posting rule are as follows:
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You want to have a realized or unrealized gain posted to an account different from a realized or unrealized loss.
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You want to use a subsidiary-specific foreign exchange variance account.
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You want to use a separate account for intercompany receivable and intercompany payable foreign exchange variances.
The currency revaluations associated with transactions and accounts that are marked for elimination are not eliminated. These gains and losses that are due to changes in exchanges rates need to be included in financial statements. For more information, see Intercompany Elimination Overview and its subtopics.
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You want to use different foreign exchange variance accounts based on the Class, Department, and Location values.
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You want to use separate foreign exchange variance posting accounts based on the source account type (for example, a bank account rather than an accounts receivable account).
To enable the Foreign Currency Variance Mapping feature, go to Setup > Company > Enable Features. Foreign Currency Variance Mapping is on the Accounting subtab under Advanced Features. Check the feature box and click Save.
Access to variance posting rules requires the Foreign Currency Variance Mapping permission at the Full level. This permission is included in the standard Administrator and CFO roles and can be added to custom roles. The permission is on the Permissions subtab of the role record under Setup.
Users with Full level access to the Foreign Currency Variance Mapping permission can create and view all rules for all subsidiaries and classifications regardless of subsidiary restrictions.
For more information about foreign currency variance posting rules, see the following topics: