Currency Revaluation Transactions

Currency revaluation transactions are automated out of NetSuite.  The first couple are straightforward; however, base currency adjustments can create confusion.  Here are all foreign currency transaction types and default settings by account.

Foreign Currency Transactions

• Unrealized Gain/Loss.  Posts from the month end close procedure “Revalue Foreign Currency.”  Users cannot delete currency revaluation transactions.  If user re-runs currency revaluation transactions, it will post a new transaction of the net change – it will not delete or edit any existing currency revaluation transaction(s).
• Realized Gain/Loss.  Currency revaluation transactions will automatically post when foreign currency balance is closed (i.e., payment in full).  If the user adjusts the source transaction, it will automatically update the currency revaluation transaction.
• Rounding Gain/Loss.  Currency revaluation transaction will automatically post when foreign currency balance is closed and rounding difference exists.
• Base Currency Adjustment.  Currency revaluation transaction will be posted as part of the period close process when the foreign currency balance equals 0.00.  This will prevent continual revaluation of foreign currency balances. 

Revaluation preferences are set at the account level and can be adjusted for most account types. The defaults shown below do need to be reviewed by the controller when initially setting up the COA. Revaluation preferences may need to be adjusted on an account-by-account basis.

Default Settings by Account Type

• Bank – Revalue
• A/R – Revalue
• Other Current Asset – Do not revalue
• Deferred Expense – Do not revalue
• Unbilled Receivable – Revalue
• Fixed Asset – Do not revalue
• Other Asset – Do not revalue
• A/P – Revalue
• Credit Card – Revalue
• Other Current Liability – Revalue
• Deferred Revenue – Do not revalue
• Long Term Liability – Revalue
• Equity – Do not revalue