For NetSuite OneWorld, select rate types for exchange rates used to value financials:
- Select a General Rate Type that is used to translate amounts for accounts in the income statement, balance sheet, and other general purposes.
- Select a Cash Flow Rate Type that is used to translate amounts for accounts in the cash flow statement.
The Current rate type is based on the currency exchange rate that is effective at the end of the reported upon period. This rate is the default for most balance sheet accounts.
The Average rate type is calculated from a weighted average of the exchange rates for transactions applied during the period to accounts with a general rate type of Average. This rate is the default for income statement accounts and is used build retained earnings.
The Historical rate type is calculated from a weighted average of the exchange rates for transactions applied during the period to accounts with a general rate type of Historical. This rate is used for equity accounts, or owner’s investments, in the balance sheet.
Following are the default rate types for accounts:
- General Rate Type:
- Current – for all balance sheet accounts other than equity accounts.
- Average – for all income statement accounts.
- Historical – for all equity accounts.
- Cash Flow Rate Type: Average – for all accounts.