Netsuite > Foreign Currency Revaluation Foreign currency assessment

MENU:

Transactions > Financial > Revalue Open Currency balances

Usage Frequency:

-By the end of each month, before the checkout, manual operation.

-or in period Close checklist There is a step to be operated: Revalue Open Foreign Currency balances

Note:

-Page Month End Currency Revaluation, each subsidiary is to be done, below the list the system will list all the accounts waiting for the foreign currency amount to be traded.

-Next month, the first day of the month, the system will automatically reaver back to GL Impact.

Principle:

In order to more accurately reflect the financial costs of each month due to exchange rate changes, when we do foreign currency assessment, the current assessment of the financial costs incurred will be rushed back in the next period, so that the exchange gains and losses achieved each month is the monthly exchange rate changes and the month of the financial costs incurred. (reference:http://blog.sina.com.cn/s/blog_5127d7ca0100qltm.html)

NetSuite Processing:

-The NEW revaluation engine makes 2 postings:one at the end of the month and one at the beginning of the month that Reve RSes the first one, so the changes are not permanent (thus we call it unrealized Gain/loss).

-The new revaluation engine is designed to having the foreign exchange gains/losses posted to the bank accounts as Unrealiz Ed Gains/losses, which get auto-reversed in the beginning of next period.

 -  Bank accounts hold a "running balance", which are the accumulative effect of all historical transactions. Since There is FX gains/losses, it ' s very hard to has a condition when both foreign currency balance and base currency b Alance equal to zero at the same time.

Next issue is going to write two deferral

-Deferred Expense

-Deferred Revenue

This in the concrete project, tortured me for a while, and now seems to be confused, different company operations and use may be very dissimilar, see the specific industry bar.

Netsuite > Foreign Currency Revaluation Foreign currency assessment