Our finance team is asking why Unrealized Gain/Loss (System) account is mapped to the income statement if they are truly unrealized. I can't seem to find a great explanation

I mean...that's a basic accounting concept. Ask the people who invented accrual accounting..lol. For that reason, that and other accounts are in their own section that they can choose to ignore if they want to.

I am not CPA and only worked as a staff accountant before transitioning to systems, but we never had complicated FX transactions. However what I found searching is that unrealized gain/losses would be captured on the balance sheet under the owner's equity section. One thing I also noticed is that we have 2 accounts Unrealized FX Gain/Loss [Other Income] and Unrealized Gain/Loss (System Created account) [Other Expense]

Fwiw I was a (mostly disinterested) CPA at one point and I never saw Unrealized sitting in the Owner's Equity section. Unless you're talking about Cumulative Translation Adjustments? That's related to FX stuff and unrealized gains and that sits in the OE section. But I've never seen any Unrealized account there. If they want it there, whatever, but I'm not sure you'd be able to mess with the statements to get that to work and still have everything balance in NetSuite. They'd probably have to adjust outside the system.

@Chris - if you think of it, the variance between the transactional date FX and last day of the month FX must be recorded whether it is realized or not; these expenses do not belong to BS per ASC 830 and recorded in OCI aka Other Comprehensive Income section (yeah, CPA here speaking). You have two accounts for each type of FX gain/loss because one of the is a system generated account and another was created manually/CSV (probably when COA was created); system account gets created when you post a transaction that those elements of realized/unrealized FX gain/loss. And lastly, CTA (Cumulative Translation Adjustment) on BS is for realized FX gain/loss off income statement accumulated overtime.

Great answer @Karina although your love of the Seahawks is deplorable 🙂 Another accountant here - the accountants should know to reconcile & clear it out before closing the books. However, Other Comprehensive Income is part of the balance sheet as a subset of Shareholder's Equity.

@Karina thank you for this response. Hopefully this will explain the functionality well enough for the finance team.

usually throwing in ASC references works really well 🙂

ASC references...ugh