Subsidiary Hierarchy Change – Implications

As highlighted by Oracle NetSuite, modifying the subsidiary hierarchy is a highly complex and sensitive operation. Oracle itself has stated that: “The consequences of implemented modifications are outside the scope of any support made available to your organization by Oracle, and your organization is solely responsible for the effect of such modifications on your organization’s use of the… Continue reading Subsidiary Hierarchy Change – Implications

NetSuite Financial topics – CTA, Exchange rate Gain/Loss

Currency Translation Adjustment (CTA)  CTA is meant to reflect currency fluctuations during consolidation.  For example, if the Indian subsidiary (base currency INR) has ₹1,00,000 in retained earnings and the INR-USD rate changes from 83 to 85, NetSuite calculates the translation difference during consolidation and posts a CTA adjustment in the Netherlands parent (base currency USD). … Continue reading NetSuite Financial topics – CTA, Exchange rate Gain/Loss

Calculating Consolidated Exchange Rates in NetSuite

Consolidated Exchange Rates are used to translate financial data across subsidiaries with different base currencies.  Rate Types Used:  Current Rate: Exchange rate at the end of the period (used for assets/liabilities).  Average Rate: Weighted average of transaction rates (used for income statement).  Historical Rate: Weighted average for equity accounts   Automatic Calculation:  Go to: Lists >… Continue reading Calculating Consolidated Exchange Rates in NetSuite

Month-End Currency Revaluation in NetSuite

Currency revaluation is essential for adjusting foreign currency balances to reflect current exchange rates at the end of an accounting period. This ensures accurate financial reporting.  Steps to Perform Currency Revaluation:  Enable Accounting Periods: Ensure the Accounting Periods feature is enabled to allow proper posting of revaluations  Navigate to Revaluation: Go to Transactions > Financial… Continue reading Month-End Currency Revaluation in NetSuite