NetCash Transactions with Foreign Currencies

Overview

NetCash supports a variety of multi-currency cash application and matching scenarios. Through the Manual Match page, users can apply cash in one currency to an open GL transaction in another currency, and match bank transactions to GL transactions even when exchange rate differences cause mismatched amounts. The walkthrough below demonstrates how NetCash manages cash application and matching across different currencies. 

 Click here to view the walkthrough in full screen.

Step-by-Step Process

Cash Application

NetCash enables users to manually apply cash between bank and GL transactions in multiple currencies.

  • Navigate to NetCash > Bank > Match Bank Transactions
  • Click the Cash Application button. 
  • The Cash Application table displays the currency for each open transaction. The Amount, Open Amount, and Total Amount columns all reflect the currency specified in the Currency column. The Posted Amount column shows the amount in the subsidiary's posting currency, which may differ from the transaction currency:

  • When a user attempts to apply a bank transaction to an open transaction in a different currency, NetCash will display a popup—like the one below—allowing the user to confirm the foreign exchange rate that will be used to apply the cash and create the match:

  • When the user clicks Confirm, NetCash will generate a payment for the related open transaction, applying the exchange rate shown in the popup to that transaction.
  • On the Review Matches page (NetCash > Bank > Review Bank Matches), any match created through cross-currency cash application will display a badge showing the exchange rate used. This is the same exchange rate shown on the associated transaction.

Bank to GL Matching

Differences between the foreign exchange rates used by banks and those used in NetSuite can lead to variances between a bank transaction and the corresponding GL transaction it matches to.

To account for this, NetCash allows users to override the default rounding account during manual matching, enabling the use of an exchange rate variance account instead of a rounding account in these cases.

  • Navigate to NetCash > Bank > Match Bank Transactions
  • Make sure the Bank to GL Match button is selected:

  • Select the bank transaction and the corresponding NetSuite transaction, even though the amounts differ, and then click the Match button at the top of the screen:

  • When there are amount differences on a match NetCash prompts users to confirm that they want to make this match. On the popup that comes up users can also update the Memo and GL Account that will be used on the rounding journal entry.  
  • If the variance is the result of exchange rate differences rather than standard rounding, the Offset Account in the popup can be set to an Exchange Rate Variance account instead of a Rounding account.
  • Click Confirm after updating the Offset Account and Line Memo, if applicable:

  • To review the rounding journal entry, go to NetCash > Bank > Review Bank Matches, and locate the match that includes the rounding journal. 
  • Opening the rounding journal displays the offset account and Line Memo as recorded. If the account or memo was modified, the updated values will be shown.

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