Hi, we noticed today that the GBP to USD exchange rate used to calculate the net income of our UK entity for FY 2020 is 1.05 - which is very low (we would expect something closer to 1.30). We've compared all accounts in USD vs GBP, period by period, and everything looks fine (NetSuite translates each month at the period average rate, as expected) - however when we get to the total, all accounts look fine, except the net income exchange rate is way off and we cannot explain why. Any clues? Thanks!

What report are you running to see those values? Has it been customised? Does the report itself have an exchange rate configuration?

Hi @Tristan Day, I'm running a standard Income statement by subsidiary (for the USD value) and a standard income statement for the UK. Neither P&L is customized although i did notice that when I run the UK income statement, the format is slightly different (for instance 'overheads' instead of 'expenses' and 'Net Profit/Loss' instead of 'Net Income) - however, the math is all the same. The report does not have an exchange rate configuration.

it could be a weighted average thing...I have seen a notional negative rate before when looking at Net Profit after tax in AUD and CAD, for example (caused by some months being profitable, others loss making). What I would do is check your rates on something that always goes in one direction and has traffic every month (e.g. a revenue account). You can be confident the rates are working correctly Then I'd check to see if any P&L accounts are mistakenly set up as historical or current rather than average

between myself and Jon, @Roxane CdC, I'm out of ideas. Have you reported it to NS? Would be interested to hear what they say about it.

Hi @Tristan Day and @Jon Kears thank you for your tips, I appreciate it! I have reached out to NetSuite and they explained that it has to do with a large net loss in one period skewing the whole FY average - exactly what you thought @Jon Kears!!