Following the previous article about running the Intercompany Elimination task in the Period Close Checklist (New to NetSuite | Running the Intercompany Elimination Task in the Period Close Checklist), another important task worth understanding is the Calculate Consolidated Exchange Rate process. As part of the period close activities, this task helps ensure that financial data across subsidiaries using different currencies is properly translated for accurate consolidated reporting. Understanding both tasks is essential for a smoother and more reliable month-end close process in NetSuite.
Steps to Run Calculate Exchange Rate Task
1. Go to the Manage Accounting Periods page.
- NetSuite: Navigate to Setup > Company > Manage Accounting Periods.
NetSuite Next: Click Explore (hamburger icon in the bottom left corner beside the home button). In the menu, go to Setup > Company > Manage Accounting Periods.
NetSuite:
NetSuite Next:
2. On the Manage Accounting Periods page, open the checklist (magnifying glass icon) for the period to which you will calculate consolidated exchange rate.
3. In the Period Close Checklist page, open the task of Calculate Consolidated Exchange Rates.
4. Then click Calculate Consolidated Exchange Rates.
5. On the Consolidated Exchange Rates page, click Calculate to update rates for the period and then Back to Period Close.
6. Click Mark Task Complete to finish the task.
Note: NetSuite automatically calculates the rates for all the subsidiaries to which you have access but only those subsidiaries. Rates for other subsidiaries aren't updated.
The Calculate Consolidated Exchange Rate task plays an important role in ensuring accurate consolidated financial reporting in NetSuite. By properly translating subsidiary balances across different currencies, organizations can maintain reliable financial data during the period close process. Understanding and completing this task helps support a smoother, more accurate, and more efficient month-end close.
Make sure to follow the New to NetSuite > Advanced Accounting & OneWorld category to stay updated on best practices and new features.
