Streamlining Currency Exchange Management in NetSuite

NetSuite currency exchange rates facilitate the conversion of foreign currencies into base currencies, establishing default rates for transactions conducted in non-base currencies. These rates are represented as the number of base currency units per unit of foreign currency.

 

Setting Up NetSuite Currency Exchange Rates

The setup process for exchange rates in NetSuite is quite straightforward. Let’s explore the steps involved.

 

Base Currencies

First, establish your base currencies. Non-OneWorld companies will have a single base currency. OneWorld companies must choose a base currency for each subsidiary. Set the base currency for a standalone company on the Company Information page. For multiple subsidiaries, set the base currency on each subsidiary’s record (Setup > Company > Subsidiaries).

 

On the subsidiary record, assign one of your preconfigured currencies to the subsidiary using the dropdown list in the Currency field. Once the base currency for a subsidiary is set, the record for that currency will indicate it as a base currency.

 

Update Times

Next, ensure that your currency records contain the correct exchange rate information. 

To verify this, navigate to your list of currency records Lists > Accounting > Currencies.

 

Select the name of a currency from the list. This will open the currency record.

 

On the currency record, choose the time zone for updating the exchange rate. There are four options. NetSuite will update the rate around 6:00 AM in the selected time zone. Make sure the “Automatic Update” checkbox is checked.

 

How To Set Up Currency Exchange Rates In NetSuite

To create currency exchange rates in NetSuite, navigate to:

• List > Accounting >Currency Exchange Rates

• Base Currency – The primary currency of the company (or subsidiary if using NetSuite OneWorld).
• Source Currency – The foreign currency to be converted into the base currency.
• Exchange Rate – The rate at which the source currency is converted to the base currency. The calculation is: Base Currency = Source Currency × Exchange Rate.
• Effective Date – The date from which the exchange rate will be applied for conversions.
• Click On Save 

 

Currency Exchange Rate Integration

The Currency Exchange Rate Integration feature updates exchange rates daily around 6:00 a.m. in one of four time zones: Eastern Time (U.S. & Canada).The default is Eastern Time.You can choose a different time zone for each base currency. The update respects daylight savings time and runs at the same local time daily. To view updates, go to Lists > Accounting > Currencies and click History. A base currency must be set to trigger exchange rate integration.

 

To Enable Currency Exchange Rate Integration Feature 

• Go to Setup > Company > Enable Features.

• On the Company subtab, check the Currency Exchange Rate Integration box. (You must first check the Multiple Currencies box.)

• Read and accept the Notice, and click Save.

Select a rate provider in the Accounting Preferences:

• Go to Setup > Accounting > Preferences > Accounting Preferences.

• On the General subtab, scroll to the Exchange Rate Integration section, and select a Rate Provider.

• Click Save

If you use the Currency Exchange Rate Types feature, note that rate provider integration is only compatible with the default currency exchange rate type.

Note: Currency exchange rates in Release Preview and sandbox accounts may differ from those in production accounts.

 

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