New to NetSuite | Consolidated Exchange Rates: Understanding Rate Classifications

Consolidated exchange rates ensure that currency amounts are properly translated for consolidated reports. These rates represent the link between a subsidiary’s base currency and that of its parent or grandparent subsidiary for a specific accounting period.

NetSuite automatically generates these rates when you create subsidiaries and accounting periods, deriving initial values from the standard Currency Exchange Rates list. These rates are updated when you run the period-close checklist, as it’s part of the month-end close process.

Additionally, NetSuite assigns two consolidated rate type values to every account: a General Rate Type (for the Income Statement and Balance Sheet) and a