how to fix advanced intercompany journal entry cau...
# ask-stanley-ai
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how to fix advanced intercompany journal entry causing foreign currency variance
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AI generated answer (using internal Slack threads):
****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ****** To fix the issue with the advanced intercompany journal entry causing foreign currency variance, you need to ensure that you are using the correct foreign exchange (FX) rate for the journals. At the end of the month, NetSuite will revalue everything to the last day of the month rate, which should make your bank reconciliation easier. If you are getting an error while approving the transaction, make sure that the currency EUR has been added to your intercompany entities. When dealing with subsidiaries where the functional currency doesn't match the parent sub, NetSuite has a standard functionality/period close management process. There is a step in closing called FX Revaluation, you click the button, and everything is revalued. However, there are some considerations to keep in mind: 1. 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. 2. You may want to consider having a "human checkable" basis for the consolidation rate, as using the auto-calculation can cause problems with auditors. 3. Try and get consistency with your external reporting system, if you have one. 4. Certain intercompany loans may require special FCTR effects. You can get around this using Foreign Currency Variance Posting Rules. Remember, it's always beneficial to consult with a professional who has experience with these matters.
Slack thread 1: here (available only if the original thread was posted in the last 90 days)
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Slack thread 2: here (available only if the original thread was posted in the last 90 days)
Similarity score: 0.814692736
Slack thread 3: here (available only if the original thread was posted in the last 90 days)
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