NetCash Transactions with Foreign Currencies
NetCash handles many scenarios where users need to apply or transfer cash between transactions that have different currencies. Using the Manual Match Page in NetCash, users can apply cash denominated in one currency to an open GL transaction denominated in another currency, transfer cash from a bank account denominated in one currency to a bank account denominated in another currency, and match a bank transaction with a GL transaction that have different amounts due to exchange rate differences. The walkthrough below demonstrates how the cash application, transfer, and matching processes work with different currencies.
Click here to view the walkthrough in full screen.
NetSuite prevents certain transactions based on a subsidiary's base currency when GL Accounts that are of the Bank Account Type are involved. NetCash is subject to NetSuite limitations. Below are two of these limitations and examples of how they apply:
1. When GL Bank Accounts are involved, one of the two Bank Accounts must be denominated in the same currency as the Subsidiary's base currency. This prevents any transfers between two currencies when neither are in the base currency.
2. NetSuite does not allow payments to be created using any currency on open transactions that are denominated in the base currency other than the base currency.
Example: Let's say a company has a subsidiary with USD as its base currency. This subsidiary has three bank accounts: a USD Bank Account, a CAD Bank Account, and a JPY Bank Account.
In this situation, transfers between the USD Bank account and either the CAD Bank Account or JPY Bank Account would be allowed. However, NetSuite would prevent transfers between the CAD Bank Account and the JPY Bank Account.
Regarding Cash Application, NetSuite would allow a USD or CAD payment to be created for a CAD-denominated open transaction or a USD or JPY payment to be created for a JPY-denominated open transaction. However, NetSuite would prevent a CAD or JPY payment from being created for a USD-denominated open transaction. NetSuite would also prevent a CAD payment from being created for a JPY-denominated open transaction and vice versa.