Operating globally means dealing with multiple currencies—and NetSuite’s multicurrency and consolidation features make it easy to manage transactions, financial statements, and reporting across different currencies. Here’s how to set up multicurrency transactions, configure consolidated exchange rates, and even update them using CSV imports.
What is Multicurrency in NetSuite?
The multicurrency feature in NetSuite lets you:
- Transact in multiple currencies across customers, vendors, and subsidiaries.
- Automatically apply exchange rates for accounting and financial reporting.
- Consolidate financial reports across subsidiaries in a base currency.
Step-by-Step: Enabling Multicurrency in NetSuite
Step 1. Enable the Feature
- Navigate to Setup > Company > Enable Features.
- Under the Company subtab, check Multiple Currencies.
- If using OneWorld, enable Subsidiaries and Consolidated Exchange Rates.
- Click Save.
Step 2. Set Up Currencies
- Go to Lists > Accounting > Currencies.
- Review the default currencies; add others as needed (e.g., EUR, GBP, JPY).
Step 3. Define Exchange Rates
- Navigate to Lists > Accounting > Currency Exchange Rates.
- Enter rates manually, or use the Automated Exchange Rate Integration for real-time updates.
Setting Up Consolidated Exchange Rates
What are Consolidated Exchange Rates?
Consolidated exchange rates let you convert financial data from a subsidiary’s base currency to the parent’s base currency for consolidated financial reporting.
You can set up three types of rates:
- Average Rate – Used for Income Statement accounts.
- Current Rate – Used for Balance Sheet accounts.
- Historical Rate – Used for Equity accounts.
How to Set Up Consolidated Exchange Rates
Step 1. Navigate to Consolidated Exchange Rates
- Go to Lists > Accounting > Consolidated Exchange Rates.
Step 2. Choose the Subsidiary Pair
- Select the from subsidiary and to subsidiary (usually the parent).
- Choose the accounting period you want to apply the rates for.
Step 3. Enter Rates
- Fill in the Average Rate, Current Rate, and Historical Rate fields.
- Save your changes.
Step 4. Review Rates
- NetSuite uses these rates for consolidation reports like the Balance Sheet and Income Statement.
How to Import or Update Consolidated Exchange Rates Using CSV
If you have many subsidiaries or accounting periods to update, a CSV import is often faster.
Step 1. Prepare Your CSV File
Your CSV should include:
- From Subsidiary (Internal ID or Name)
- To Subsidiary (Internal ID or Name)
- Accounting Period (Internal ID or Name)
- Average Rate
- Current Rate
- Historical Rate
Example:
|
From Subsidiary |
To Subsidiary |
Accounting Period |
Average Rate |
Current Rate |
Historical Rate |
|
Germany |
Parent |
2025-06 |
1.12 |
1.10 |
1.08 |
Step 2. Navigate to CSV Import
- Go to Setup > Import/Export > Import CSV Records.
- Select Accounting > Consolidated Exchange Rates.
- Choose Add or Update as the import type.
Step 3. Upload and Map
- Upload your CSV file.
- Map the fields to NetSuite’s fields (e.g., Subsidiary, Accounting Period, Average Rate).
- Validate the mapping to ensure all fields align correctly.
Step 4. Run the Import
- Click Next and review the summary.
- Click Run.
- Check the import status to confirm success.
Tips for Smooth Multicurrency Transactions
- Use Automated Exchange Rates: Use NetSuite’s integration with Xignite (or another provider) to automatically update daily rates.
- Monitor Consolidated Rates: Regularly review consolidated exchange rates to ensure your reports reflect accurate currency conversions.
- Validate Subsidiary Hierarchies: Confirm that each subsidiary’s base currency and hierarchy are correct—especially after mergers or acquisitions.
Example: Selling in EUR
Scenario:
Your US-based parent company sells products through a German subsidiary, transacting in EUR.
Steps:
- Enable multicurrency and consolidated exchange rates.
- Add EUR to your currency list.
- Assign EUR as the base currency for the German subsidiary.
- Enter consolidated rates from Germany to the US parent for the relevant periods.
- Create transactions in EUR—NetSuite will automatically use the current rate and apply the correct consolidation rates for financial reporting.
Final Thoughts
Multicurrency features and consolidated exchange rates in NetSuite make it easy to manage global operations. Using Consolidated Exchange Rates allows accurate reporting on the Consolidated level of your financial statements.
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