The Foreign Currency Variance Mapping feature is used to define the rules to post the foreign currency variances to specific accounts. If the foreign currency variance mapping feature is not enabled, then NetSuite will post the foreign currency variances to the system generated realized and unrealized gain/loss accounts. The default system-generated accounts are also used if no rules match the transaction.
The foreign currency variance posting rules may be needed in the below cases:
- Realized or unrealized gain needs to be posted to an account different from a realized or unrealized loss.
- Subsidiary-specific foreign exchange variance accounts are needed to post each subsidiary’s foreign currency variances differently.
- Separate accounts are needed for posting intercompany receivable and intercompany payable foreign exchange variances.
The currency revaluations associated with transactions and accounts that are marked for elimination are not eliminated. These gains and losses that are due to changes in exchange rates need to be included in financial statements.
- Different foreign exchange variance accounts based on the Class, Department, and Location values.
- Separate foreign exchange variance posting accounts based on the source account type (for example, a bank account rather than an accounts receivable account).
To enable the Foreign Currency Variance Mapping feature,
- Go to Setup > Company > Setup Tasks > Enable Features.
- In the Accounting subtab, under Advanced Features, check the box for “Foreign Currency Variance Mapping”.
- Click Save.
Access to variance posting rules requires the Foreign Currency Variance Mapping permission at the Full level. Users with Full level access to the Foreign Currency Variance Mapping permission can create and view all rules for all subsidiaries and classifications regardless of subsidiary restrictions.