Calculating Consolidated Exchange Rates Automatically

If you can edit a consolidated exchange rate, you can choose to have NetSuite calculate the rate for you. NetSuite can check the transactions and currency exchange rates from which consolidated rates are derived and automatically update the consolidated exchange rates.

Your user role must have the Currency permission with the Full permission level to work with consolidated exchange rates.

When NetSuite calculates consolidated exchange rates, the results are derived from the currency exchange rates and transaction history in your account as follows:

• Current Rate -The currency exchange rate in effect at the end of the period.

• Average Rate -Weighted average based on transaction amounts for the period for all accounts with a General Rate Type of Average. The transaction amounts are multiplied by the currency exchange rates on the dates of the transactions. The weighted average equals the total of the transaction amounts multiple by the currency exchange rates divided by the total transaction amount.

• Historical Rate -Weighted average based on transaction amounts for the period for all accounts with a General Rate Type of Historical. The transaction amounts are multiplied by the currency exchange rates on the dates of the transactions. The weighted average equals the total of the transaction amounts multiple by the currency exchange rates divided by the total transaction amount.

For examples of the calculations, see Consolidated Exchange Rate Automatic Calculation Example.

To have NetSuite calculate consolidated exchange rates automatically:

• Go to Lists > Accounting > Consolidated Exchange Rates. Rows for open periods that have direct rates include an Auto Calculate Rates icon in the Calculate column. Click the icon to update rates in that row only, or click Calculate to update the rates for all subsidiaries to which you have access.

or

1. From the Period Close Checklist, for the Calculate Consolidated Exchange Rates task, click Calculate Consolidated Exchange Rates.

2. On the Consolidated Exchange Rates page, click Calculate to update rates for the period.

   NetSuite automatically calculates the rates for all the subsidiaries to which you have access but only those subsidiaries. Rates for other subsidiaries are not updated.

   For information about closing accounting periods, see Using the Period Close Checklist.

General Notices