Question about the FX adjustments on Rev Rec.

Example: 

First Bill $48k in 1/1/2024  -- Adjustments throughout the year.  Relatively small (20-30 dollar variances)
Second Bill $48k in 1/1/2025 -- The calc is now factoring in the cumulative amount billed ($96k) so it results in a large adjustment in January 2025. ($800). It levels out until the next billing (2026)

This is how our system has been setup for years but we are getting some questions about this now. It seems like this is native NS behavior and we don't have much control but we did notice the newish feature (2022.2) "Exclude Contract Assets from FX Reclassification". Was that added to help smooth this out or is it unrelated? Is there some other feature/setting related to this cumulative adjustment?

This preference only impacts contract assets, they will be excluded from FX. If you decide to go for it, make sure you document it since it is a change in the process

ok thanks. Have you heard possibility of doing a different type of calculation other than cumulative approach for FX Adjustments? It doesn't seem like there is a setting within Netsuite and this just seems to be the default behavior.

I am not sure what you mean by a "cumulative approach". All this is is to record the change from one rate to another in relations to base currency, It only happens once a month, and there is still a revaluation to follow for consolidations (if required). There is no other systematic process in ARM related to FX adjustments

I tried to do a quick generic mock up, but I am referring to the Foreign currency adjustment related to rev rec. The adjustment happen every month, but when we bill the next year this is a big jump in the adjustment because its averaging the rates and looking at the previous adjustment. Apparently this has caused some questions all of a sudden and auditors think it should be flat where year 1 to year 1 and then year 2 to year 2 etc. We aren't sure why this is coming up now since it's how NS has been since implementation, but we want to make sure there isn't some option somewhere that allows this functionality to be handled differently. We spoke with ACS and they said this is standard behavior. Edit: I updated the image to show an invoice occurring in March 2025. So when I say Yr2 I am really just referring to the second invoice.