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 > Revalue Open Currency Balances.
- Select the Posting Period: Choose the accounting period for which you want to run the revaluation.
- Lock the Period (Optional but Recommended): Lock the period to prevent changes after revaluation.
- Run the Revaluation: NetSuite applies exchange rates as of the last day of the period to calculate unrealized gains/losses
- Review Revaluation Transactions:
- Types include:
- Unrealized Gain/Loss: For open transactions.
- Reversal of Unrealized Gain/Loss: Posted on the first day of the next period.
- Realized Gain/Loss: When transactions are closed.
- Rounding Gain/Loss: Due to rounding differences.
- Base Currency Adjustment: To eliminate residual revaluation amounts
- Reporting: Use the Unrealized Exchange Rate Gains and Losses Report for insights.