NetAsset - How exchange rates are applied in multi-book
Overview
When a secondary accounting book uses a different base currency than the asset's primary book, NetAsset translates the asset's value into the book currency. This article covers which exchange rate NetAsset uses, where the rate comes from, and how it applies to each transaction type, with a worked example.
In short, NetAsset translates the asset cost once, when the secondary book is set up on the asset. It uses NetSuite's daily currency exchange rates as of the source transaction date. Depreciation is then calculated directly in the book currency and is never re-translated. Disposals and transfers use the rate on their booking date for the amounts they convert.
Consolidated rates apply to reporting only
NetAsset never uses consolidated exchange rates (average, current, historical) for journal entries. Those rate types only apply when a NetAsset report translates amounts for a consolidated subsidiary. See NetAsset - Foreign Currency Consideration.
Key assumptions
- The Alternate Schedules and Multi-Book add-ons are installed and configured. See NetAsset - Multi-Book Setup.
- The NetSuite Multi-Currency feature is enabled.
- An alternate schedule on the asset is assigned an accounting book whose currency differs from the asset's currency. If the currencies match, no translation happens and the exchange rate is 1.
Secondary books without an alternate schedule
The behavior in this article applies only when an alternate schedule on the asset is assigned the secondary accounting book. If a secondary book uses a different currency but the asset has no alternate schedule for that book, NetAsset doesn't translate the asset's values. It posts its standard transactions in the asset's currency to all books, and NetSuite converts each one into the secondary book at the exchange rate on that transaction's date. As a result, the cost, depreciation, and disposal amounts in that book reflect the rate on each posting date, not a single historical rate.
To keep the secondary book's cost and depreciation at the rate from when the asset was acquired, set up an alternate schedule for that book. See NetAsset - Multi-Book Setup.
We're planning an enhancement to address this gap. If you'd like to be notified when it's available, contact your AMO.
Where NetAsset gets exchange rates
All rates used for posting come from NetSuite's standard currency exchange rate table (Lists > Accounting > Currency Exchange Rates). This is a date-specific rate, effectively a historical spot rate. NetAsset does not have its own rate table or a rate-type preference.
| Activity | Rate used | Rate date |
|---|---|---|
| Secondary-book cost, asset created from source transactions (vendor bill, journal, and so on) | Currency exchange rate | Each source transaction's date (the most recent rate effective on or before that date) |
| Secondary-book cost, asset with no source transaction (for example, CSV import or manual entry) | Currency exchange rate | The alternate schedule's in-service date, or the asset's in-service date if that is blank |
| Depreciation | None. Calculated in book currency from the translated cost | n/a |
| Build-ups | Currency exchange rate | Each build-up transaction's date. If that detail is not available, the build-up's effective date |
| Disposal: cash received and cash paid | Currency exchange rate | Disposal booking date |
| Transfer to a subsidiary with a different currency | Currency exchange rate, unless overridden | Transfer booking date |
| Revaluations other than build-ups (write-up, write-down, impairment) | None | n/a |
| Splits | None. Secondary-book values split in the same proportion as the primary book | n/a |
How exchange rates apply by transaction type
Asset creation (secondary-book cost)
When an accounting book is assigned to an alternate schedule (on the asset, or defaulted from the asset type), NetAsset calculates the alternate schedule's Capitalized Asset Value At In-Service in the book currency:
- Asset created from source transactions: each source line's transaction-currency amount is converted to the book currency as of that transaction's date. The results are added together and rounded to two decimals. The rate field on the alternate schedule shows the rate used. If there is more than one source transaction, it shows the simple average of their rates, for reference only.
- Asset with no source transactions: the primary Capitalized Asset Value At In-Service is multiplied by the rate on the alternate in-service date and rounded to two decimals.
The calculation runs again whenever the accounting book, the book currency, or the in-service date changes, but only while the alternate schedule is unlocked or the asset is still in Pending status. If you edit the Alternate Exchange Rate on the alternate schedule subtab, the alternate Capitalized Asset Value At In-Service is recalculated as the primary value × the new rate as soon as you enter it, before you save. After the alternate schedule is locked, the cost and rate are fixed.
Depreciation
The alternate schedule is depreciated in the book currency, using the translated cost and that schedule's own method and life. Each period's secondary-book journal entry posts the scheduled book-currency amount, with no period-end exchange rate applied. Any later rate movement does not change the asset's cost or depreciation in the secondary book.
Build-ups
When a build-up's currency differs from the schedule's currency, each build-up amount is converted at the rate effective on or before its own transaction date, and the converted amounts are added together. If transaction-level detail is not available, the whole amount is converted at the rate on the build-up's effective date. See NetAsset - Build Up Existing Assets.
Disposals
Each book is disposed using its own cost, accumulated depreciation, and net book value, all already in book currency. Only cash received and cash paid are entered in the asset's currency. They are converted to the book currency at the rate on the disposal booking date, and the gain or loss is calculated from the converted amounts. See NetAsset - Asset Disposals.
Transfers
A rate applies only when an asset moves to a subsidiary with a different currency. NetAsset multiplies cost, accumulated depreciation, accumulated impairment, net book value, and residual value by the rate on the transfer booking date. For a secondary book, the target currency is that book's currency for the new subsidiary. When Allow Override of Transfer Accounts is enabled in NetAsset setup, the transfer page shows an Override Exchange Rate field so you can enter your own rate. See NetAsset - Asset Transfers.
Example
Setup: subsidiary and primary book in EUR, secondary book in USD, straight-line depreciation over 60 months with no residual value. The rates are illustrative.
| Step | Primary book (EUR) | Secondary book (USD) |
|---|---|---|
| Vendor bill dated Jan 10, 2026 for EUR 12,000. The EUR to USD rate effective on or before Jan 10 is 1.0850 | Cost 12,000.00 | Cost 12,000 × 1.0850 = 13,020.00. Rate field shows 1.085000 |
| Monthly depreciation | 12,000 / 60 = 200.00 | 13,020 / 60 = 217.00 every month, whatever later rates are |
| After 18 months | NBV 12,000 − 3,600 = 8,400.00 | NBV 13,020 − 3,906 = 9,114.00 |
| Disposal with cash received EUR 6,000. The rate on the booking date is 1.1000 | Loss 6,000 − 8,400 = (2,400.00) | Proceeds 6,000 × 1.1000 = 6,600.00. Loss 6,600 − 9,114 = (2,514.00) |
Troubleshooting
The secondary-book amount on the asset differs slightly from the source bill's secondary-book amount
NetAsset does not copy the amount NetSuite posted to the secondary book on the source transaction. It recalculates the cost from the currency exchange rate table, as described above. A small difference can appear when:
- the source transaction used an exchange rate that differs from the table rate for that date (for example, a rate edited on the transaction), or
- the asset has no source transaction log, so the rate on the in-service date was used instead of the transaction-date rate.
Because depreciation is calculated from the translated cost, the difference carries through every depreciation entry. To correct it:
- Open the asset and select the alternate schedule subtab (for example, Alt. 2).
- Compare the Alternate Exchange Rate and Capitalized Asset Value At In-Service to the source transaction's secondary-book amount.
- While the alternate schedule is still unlocked, click Edit and enter the correct rate in the Alternate Exchange Rate field. The alternate Capitalized Asset Value At In-Service recalculates as soon as you enter the new rate, before you save. Confirm the new value, then click Save.
- Regenerate the alternate depreciation schedule before running journals.
Check the rate before locking the alternate schedule
Once the alternate schedule is locked and the asset is no longer Pending, NetAsset stops recalculating the secondary-book cost and rate. Review the translated value before locking. A locked asset needs a revaluation to change its cost. See NetAsset - Multi-Book Revaluations.
The secondary-book cost equals the primary cost with no conversion
If NetAsset cannot find an exchange rate, it uses a rate of 1. The secondary-book cost then equals the untranslated primary cost. Confirm that a rate exists in Lists > Accounting > Currency Exchange Rates for the currency pair on or before the relevant date. Then correct the rate on the alternate schedule as described above.
