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Multi-Currency Transactions in NetSuite allow businesses to manage financial transactions in multiple currencies, which is particularly useful for companies operating in global markets. This feature enables streamlined currency management, automatic exchange rate updates, and accurate reporting for international transactions.
1. Support for Multiple Currencies:
Handle transactions in multiple currencies, such as sales, purchases, and expenses.
Assign default currencies to customers, vendors, and subsidiaries, making it easier to transact in their local currencies.
2. Automatic Exchange Rate Updates:
NetSuite integrates with exchange rate providers to fetch and update exchange rates automatically.
Option to manually override exchange rates for specific transactions if needed.
3. Currency Revaluation:
Revalue open foreign currency balances (such as receivables, payables, and bank accounts) at the end of a financial period.
Automatically calculate and post gains or losses due to exchange rate fluctuations.
4. Subsidiary-Specific Currency Management:
Assign base currencies to subsidiaries in NetSuite OneWorld accounts.
Consolidate financials across subsidiaries with automatic currency conversion.
5. Multi-Currency Invoices and Payments:
Generate invoices and accept payments in a customer’s preferred currency.
Issue payments to vendors in their local currency.
6. Reporting in Multiple Currencies:
Generate financial statements in both base and foreign currencies.
Consolidated financial reporting supports multi-currency environments, showing results in the parent company’s base currency.
7. Integration with Banking:
Reconcile multi-currency bank transactions.
Perform internal fund transfers between accounts in different currencies.
Go to Setup:
Navigate to Setup > Company > Enable Features.
Enable Multi-Currency:
Under the "International" subtab, check the box for Multi-Currency.
Enable Additional Features (Optional):
Currency Exchange Rate Integration (to fetch exchange rates automatically).
Consolidated Exchange Rates (for OneWorld accounts managing multiple subsidiaries).
1. Creating Transactions in Different Currencies:
When creating sales orders, invoices, or vendor bills, select the currency applicable to the transaction.
NetSuite automatically applies the relevant exchange rate based on the transaction date.
2. Handling Payments:
Accept payments from customers in their preferred currency.
Pay vendors using the currency on the vendor bill.
3. Managing Currency Exchange Rates:
Exchange rates can be updated manually via Lists > Accounting > Currency Exchange Rates.
Alternatively, use automated exchange rate providers to fetch real-time rates.
4. Currency Revaluation Process:
Perform revaluation of foreign currency balances using Transactions > Financial > Revalue Open Balances.
NetSuite posts the gain or loss to the appropriate revaluation accounts.
5. Consolidated Reporting:
Generate consolidated financial statements using Reports > Financial > Consolidated Balance Sheet or similar reports.
All subsidiaries' financials are converted into the parent company’s base currency.
Streamlined Global Operations:
Manage transactions across multiple currencies without manual conversions.
Improved Accuracy:
Automatic exchange rate updates reduce errors associated with manual calculations.
Compliance with Accounting Standards:
Currency revaluation and reporting align with international financial regulations, including GAAP and IFRS.
Efficiency:
Simplified workflows for billing, payments, and financial consolidation in global operations.
Customer Sales in Foreign Currencies:
A US-based company selling products to customers in Europe can generate invoices in Euros while managing internal accounting in USD.
Vendor Payments in Local Currencies:
An Australian subsidiary can pay vendors in AUD while consolidating financials in the parent company’s currency.
Multi-Currency Bank Reconciliation:
Reconcile transactions in foreign currency bank accounts with minimal manual effort.