NetSuite Multi-currency allows for the assignment of more than one currency to a customer or vendor enabling you to do business with customers/vendors who use multiple currencies in their business. This feature enables you to enter transactions in multiple currencies for an individual customer or vendor.
Set up > Company > Enable features > Under Company subtab > International > Check the box for Multi- Currencies.
Use the ‘ Currency Exchange rate Integration ‘ feature to automate update exchange rates.
Currency Exchange Rate Integration
The currency exchange rate integration feature automatically updates currency exchange rates by the specified provider one time each day for all NetSuite accounts utilizing the currency exchange rate integration. The automatic updates occur at approximately 6 AM in one of the four available time zones. Daily integration ensures accurate reporting and conversation of currencies within your transactions.
CREATE CURRENCY
List > Accounting > Currencies.
Check the box for the “ Override Currency format”.
After creating the currency take the currency record, Check the box for ‘Is base currency’ and ‘Automate Update’.
Multi-Currency Customers & Vendors
NetSuite Multi-currency allows for the assignment of more than one currency to a customer or vendor enabling you to do business with customers/vendors who use multiple currencies in their business. This feature enables you to enter transactions in multiple currencies for an individual customer or vendor. You also have the option of accepting payment from customers in any of the currencies in which they do business. One consideration to take into account is that payment must be applied in the currency of the transaction. A transfer may be required to ensure that the payment is applied in the currency of the invoice.
CURRENCY EXCHANGE RATE
List > Accounting > Currency Exchange Rate
ADDING RATES TO CURRENCY EXCHANGE RATE
- The Currency rates are applied to the transaction and provide default rates for transactions in currencies other than the base currency.
- Rates are expressed in base currency units per foreign currency unit.
- Spot rate is used to translate most balance sheet accounts and the current rate at the end of the accounting period.
TWO CHOICES FOR UPDATING THE CURRENCY EXCHANGE RATE
- You can manually update a rate between two currencies by adding a new rate for the same two currencies with a different effective date.
- Or if the currency exchange integration feature is enabled, you define the update time zone on the currency record, automating updating the rate daily.
CONSOLIDATED EXCHANGE RATES
This is the average exchange rate. This rate 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 used to translate accounts in the income statement and to build retained earnings.
List > Accounting > Consolidated Exchange Rates
Auto-calculation of Consolidated Exchange Rates
Consolidated exchange rates ensure that currency amounts translate properly from child subsidiaries to parent subsidiaries for consolidated reporting. With NetSuite Multi-currency functionality, Consolidated exchange rates are generated between the base currency of each subsidiary and its parent or grandparent subsidiary for every accounting period and accounting period groupings such as quarter and fiscal year. NetSuite will check the transactions and currency exchange rates from which consolidated rates are derived and automatically update the consolidated exchange rates.