Consolidated Exchange Rate Automatic Calculation Example

The following is an example of the calculation that NetSuite uses to determine the consolidated exchange rates for subsidiaries with the following hierarchy:

The transactions during the period of January for the U.K. subsidiary are listed in the following table:

Transaction Date

Currency Exchange Rate

Amount

Posting Account General Rate Type

January 1

2

100 GBP

Average

January 1

2

300 GBP

Historical

January 15

2.5

200 GBP

Average

January 15

2.5

200 GBP

Historical

January 31

3

300 GBP

Average

January 31

3

100 GBP

Historical

When you click Calculate at the top of the Consolidated Exchange Rates page, the consolidated exchange rates from the U.K. subsidiary to the U.S. Subsidiary are derived as follows:

The results are the same if you click the calculate icon Calculator icon for each subsidiary pair.

Note:

In a Transaction saved search that includes consolidated exchange rates values, the values may not match the general ledger impact of these same transactions. The difference is because currency exchange rates are used to determine the general ledger impact of transactions, not consolidated exchange rates. For more information, see Consolidated Exchange Rate Types for Transaction Searches.

Related Topics

General Notices