Does anyone know how to fix the consolidated exchange rate difference between a jnl imported in Feb as part of data migration using an imported consolidated rate for equity accounts and a normal journal imported in March using the NetSuite calculated exchange rate. Both Journals in USD, parent company GBP. Both with postings to the equity accounts, one value is translated at the Feb historical rate and one at March which creates a difference on the BS nominal. Both journals have the same value

you will have this revaluation every period, I do not see that anything needs to be fixed here..

Because we have a running balance for the in the equity account for the parent

is the account set to revalue?

Is a share capital equity account. Should it be set for revaluation?

you can upload your historical FX rates

The historical consolidated is imported for Feb and the March rate is calculated by NetSuite

you can manually change it to make it what you need

Which one I would change as the Feb one needs to match the historical balance and the other one is calculated by NetSuite which should be correct?

Lists > Accounting > Consolidated Exchange Rates, replace your historical rate for March only (and every other period thereafter).

Should I manually change it, but then NetSuite will recalculate them as part of the month end closure

NS uses historic average for the equity accounts, i.e. it combines the rates used in equity transactions and average it throughout the life of the balance sheet. you may want to use your own rate to keep the balances as what you need

But shouldn’t we go with NetSuite out of the box functionality and would that rate be wrong?

Technically this rate should be the one you need. I would validate it though

Have you come accross this scenario before?

every time with variations

So how did you fix them?

I do not, I suggest to use NS rate

Andreea - what is happening is NetSuite will default the current month rate as the historical rate for the transactions incurred in that month. For any transactions incurred in the subsequent month, the current rate of that month will be used to consolidate those transactions and then the "historical rate" is what is calculated as the blend of all transactions over time. Any fluctuations in the future for historical rate (equity accounts) are booked to the CTA. I have seen this scenario many times before and have had to unwind.

We have an opening balance for Feb for x and then in March we want to clear that balance to 0 and post a journal to do that. When we look at parent consolidated translation we have a difference, the FC doesn’t want to see that difference as a cary over

Ah - you want to eliminate the balance. I'm sure I have an example somewhere - let me look - it might help

Thank you

What you have to do is calculate the historical rate on the books. Do a JE using that rate as the spot rate and then force the month end historical rate for the current month to that same rate to fully eliminate. Happy to jump on a quick huddle if need be. I am a CPA and have done this for many clients

IMO if you're confident the balance should be zero on consol, just book a permanent difference to a CTA account in the elimination entity (shouldn't be the "official" CTA, should be another account that maps to the same area on the balance sheet). I'd argue an explainable manual adjustment is a better conversation to have with the auditor than explaining why you overrode the automatic Netsuite process...but depends how well your auditor knows and trusts Netsuite