This article summarizes the calculations that are used to translate the entity-level report amount to the consolidated-level report amount.
The consolidated report amount is calculated based on the consolidated exchange rates that are used to convert the amount of a subsidiary to the consolidated level. This translation happens at each transaction level and not on the total amount in the chart of accounts. The points below explain how the consolidated amount is translated from the subsidiary amount:
- Select the standard trial balance report (or can use any other reports) in “Reports> Financial> Trial Balance”.
- Customize the report and add the “Subsidiary name” column.
- In the Subsidiary Filter, select one child subsidiary. Select one account in the Trial balance report and click on the “Amount” column of the account to view the Detailed Report and then export it.
- In the Subsidiary Filter, select the consolidated level of the parent of the subsidiary that is selected in the previous step. Select the account (same account in the previous step) in the Trial balance report and click on the “Amount” column to view the Detailed Report and then export it.
- Combine the consolidated amount and entity amount into one Excel file.
- Calculate the consolidated rate using the formula Consolidated Amount/Subsidiary Amount in the Excel file. The result is the Consolidated Rate used per Transaction based on the posting period of the transaction.
- To compare the calculated consolidated rate with that in NetSuite, Navigate to List>Accounting>Consolidated Exchange Rate.
- Set the Following Filters:
- Period = FY 2022
- From Subsidiary = Child subsidiary in select in the report
- To Subsidiary = Parent subsidiary selected in the report
- Export the list in the Excel file and add the list to the file in which the consolidated rate calculations are done.
- Set the Following Filters:
- Compare the calculated consolidated rate and the rate that is exported from NetSuite. The result will be zero. This concludes that the consolidated report is based on the converted amount per transaction and not on the total amount.