If our NetSuite account has more than one currency needed, then we have to enable the multi-currency feature. Once the feature is enabled, we can create new currency records.
To create a new currency record,
- Go to Lists > Accounting > Currencies > New.
- In the Name field, enter a unique name for the currency.
Use a name that combines the country name or abbreviation as well as the name of the currency. This name will be used in the currency fields on customer, vendor, and all other records.
- In the Default Locale field, select a country to determine the currency format.
- The ISO Code field displays the three-letter International Standards Organization (ISO) currency code. NetSuite will show a warning if we change the value to an unsupported ISO code. Non-standard ISO codes significantly slow down the exchange rate update process. To use the Currency Exchange Rate Integration feature, the currency record must have a valid ISO code.
- The Format Sample field displays the default currency format for the currency of the Default Locale. The currency format is the combination of the symbol, thousands separator, level of decimal precision, and negative symbol used to display amounts on transactions.
- In the Default Exchange Rate field, enter an exchange rate for this currency against the base currency of this company.
In NetSuite OneWorld, the exchange rate for this currency against the base currency of the root parent-subsidiary is used. In Multi-Book Accounting, the exchange rate for this currency against the base currency of the root subsidiary in the primary book is used. The exchange rate is equal to the base currency amount divided by the foreign currency amount.
For example:
- If your company is located in Canada and you are defining the U.S. dollar, and the current exchange rate is 1.02 Canadian dollars to 1.00 U.S. dollar, the Default Exchange Rate for the U.S. dollar is 1.02/1.00, or 1.02.
- If your company is located in the U.S. and you are defining the Canadian dollar, and the current exchange rate is 1.02 Canadian dollars to 1.00 U.S. dollar, the Default Exchange Rate for the Canadian dollar is 1.00/1.02, or .98.
- Complete other fields as needed. Some fields are displayed only when the Currency Exchange Rate Integration is enabled in the account.
- Is Base Currency is displayed only on existing currency records which are designated as the base currency for a subsidiary or as the currency at the company level. The box is always checked and cannot be edited.
- Currency Precision is populated when saving the currency record. The precision designates the number of digits to the right of the decimal point used in currency transactions. Precision can be zero or two.
- We cannot make a currency inactive if any open transactions exist in that currency.
- To customize the format for this currency, check the Override Currency Format box.
- In the Symbol field, enter the text and currency symbol if needed.
- In the Symbol Placement field, select to place the currency symbol before or after the number.
The Format Sample field shows how currency amounts displayed on screen and on printed transactions using the customized currency format and personal Number Format preference.
- Click Save.
After creating the records for the currencies to be used in transactions, the exchange rates between currencies can be updated.