advanced intercompany journal entry causing foreign currency variances

AI generated answer (using internal Slack threads):

Based on the conversations, it seems that the issue of advanced intercompany journal entry causing foreign currency variances can be addressed by using the Foreign Currency Variance Posting Rules in NetSuite. When you are transferring funds in foreign currency from one bank to another, NetSuite can record a realized foreign exchange gain or loss. However, you need to be using the bank's foreign exchange rate for the journals. At the end of the month, NetSuite will revalue everything to the last day of the month rate, which can make your bank reconciliation easier. In the case of a subsidiary where the functional currency doesn't match the parent subsidiary, NetSuite can automate the foreign exchange translation during consolidation. This is a standard functionality/period close management process. There is a step in closing called FX Revaluation, where you click the button, and everything is revalued. However, there are some considerations to keep in mind. 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. You may want to consider having a "human checkable" basis for the consolidation rate, as using the auto-calculation can cause problems with auditors. If you are facing an error while approving an intercompany journal entry, it could be because the currency on the transaction is different from the currency of the entity on this transaction. Make sure that you have added the currency to your intercompany entities. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******