how to handle foreign currency differences for intercompany transactions

AI generated answer (using internal Slack threads):

Handling foreign currency differences for intercompany transactions in NetSuite involves several steps and considerations: 1. Foreign Currency Revaluation: NetSuite has a standard functionality for foreign currency revaluation. This is part of the period close management process. There is a step in closing called FX Revaluation. When you click the button, all values are revalued. This is particularly useful when the functional currency of a subsidiary doesn't match the parent sub. 2. Intercompany Transactions: The "eliminate intercompany transactions" setting on an account is not a panacea, unless you are doing proper arms-length transactions (or advanced intercompany journals) EVERY time. 3. Foreign Currency Variance Posting Rules: Certain intercompany loans may require special FCTR effects. This can be handled using Foreign Currency Variance Posting Rules. 4. Bank Transfer Rate vs GL Consolidated Rate: When booking intercompany fund transfers in different currencies, there might be a balance in the clearing account after consolidation since the bank transfer rate is different from the GL consolidated rate for that period. One way to clear out this balance is by booking a separate JE for it to go to exchange gain/loss. 5. Open Foreign-Currency Denominated APs and ARs: When importing open ARs and APs as of the cutoff date using the original foreign currency amount and original exchange rate, you should create a reversing JE on the first day of the next period on the unrealized FOREX gains and losses, so that when you run the forex revaluation process in NetSuite, the new unrealized FOREX is the net of the reversal and the cumulative as of the end of the new period. 6. Foreign Currency Bank Accounts: Make sure the full foreign currency balance has been loaded with the exchange rates as of the cutoff date, or the revaluation will be wrong. Remember, it's important to have a consultant who's familiar with these processes, but if you read the suiteanswers per the link provided in the threads, it should be understandable. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******