Netsuite multi-currency

 Yes. Multi-currency support is a core capability of the NetSuite platform and is available to all customers without requiring a separate module. The number of currencies active in your environment and the exchange rate update frequency can be configured to match your business requirements.

 NetSuite integrates with leading financial data providers to update exchange rates automatically. Rates can be configured to update daily or at another frequency, and historical rates are stored so that any transaction can be reviewed at the rate that applied on the transaction date. You can also enter manual rates for specific transactions where a contracted or agreed rate differs from the market rate.

 NetSuite’s revaluation process runs at period end and automatically recalculates the base currency value of all open foreign currency monetary balances using the current exchange rate. The difference between the current rate and the rate at which the balance was originally recorded is posted to an unrealised gain or loss account in the general ledger. A reversal is automatically posted at the start of the following period, consistent with the requirements of AASB 121 and IFRS.

NetSuite is used by businesses of all sizes, from startups to rapidly growing companies. If you’re considering making the switch but unsure about the cost, here’s a quick breakdown.

NetSuite operates on an annual subscription model, which includes three key components: the core platform, optional modules, and the number of users. There’s also a one-time implementation fee for the initial setup. As your business expands, you can easily add new modules and users, thanks to the flexibility of cloud software.

Multi-currency functionality is included within the core NetSuite platform, making it available to all NetSuite customers as part of the standard financial management capability.

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 Yes. For transactions where a negotiated or contracted exchange rate applies, such as a forward foreign exchange contract or a rate agreed with a customer, the rate can be manually entered on the individual transaction, overriding the system’s default daily rate. The transaction is then recorded at the specified rate whilst the daily rate continues to apply to other transactions in the same currency.

For businesses with operations in multiple currencies, NetSuite translates foreign currency results into the group reporting currency using the appropriate translation method for each balance sheet and income statement line, consistent with AASB 121. Income statement items are translated at the average rate for the period and balance sheet items at the closing rate, with translation differences recorded in equity. This produces consolidated financial statements that comply with Australian accounting standards without requiring manual currency translation outside the system.

Yes. New currencies can be activated in NetSuite at any time as your business expands into new markets or begins transacting with new suppliers or customers in additional currencies. Once a currency is activated, exchange rates are applied automatically and the currency is immediately available for use in transactions, without disrupting existing currency configurations.

When a foreign currency payment is applied to an invoice that was recorded at a different exchange rate, NetSuite automatically calculates the realised gain or loss arising from the difference between the invoice rate and the payment rate, and posts the amount to the designated foreign exchange gain or loss account in the general ledger. This happens automatically at the time of payment application without any manual calculation or journal preparation required.

As NetSuite’s 2024 ANZ Growth Partner of the Year, Annexa provides comprehensive support including implementation, configuration, ongoing support, and strategic guidance, all delivered by an Australian and New Zealand-based team with direct expertise in foreign currency accounting under Australian and New Zealand accounting standards.