NetAsset - Foreign Currency Consideration
NetAsset is fully enabled to handle multi-currency.
Considerations on Asset Record
- When an asset is capitalized, it is always capitalized in the functional currency of the subsidiary it is recorded in.
- When an asset is purchased in another currency, it should be converted to the functional currency of the subsidiary at the time the asset is record. This is done automatically when purchasing an asset with a Vendor bill. If a vendor bill is paid in EUR but the functional currency of the subsidiary is USD, the GL impact of that transaction is recorded in USD. The transaction will appear with a USD GL impact on the Create assets from CIP or Clearing screen and that USD amount will automatically flow through to the asset value.
Considerations on Transactions
- All journal entries post in the functional currency of the subsidiary.
- Depreciation expense is calculated based on the Capitalized Asset Value at In-Service entered when the asset is created. It should be based off the function currency value amount, so the depreciation expense will also be in the functional currency.
Considerations on Reporting
- The NetSuite consolidated Balance Sheet and Income Statement will translate the journal entries and value of the asset and accumulated depreciation at the GL level.
- For more information on consolidation at the BS and P&L level, please reach out to your NetSuite advisor, as this is NetSuite functionality.
- The Netgain reports will be done in the functional currency of the subsidiary selected. If the consolidated subsidiary is selected, the report will translate the asset amounts based on the selected preference for translation:
| Translation Preference | Description |
|---|---|
| Average | Uses the average rate for the period in which the transaction occurred. |
| Current | Uses the current rate for the date range/period selected to filter the search or custom KPI results, if any. |
| Historical | Uses the historical rate for the period in which the transaction occurred. |
| Per-Account | Uses the general rate type selected for each transaction's account, either average, current, or historical. When this option is selected, different rate types may be used within each set of search results. This option is the default. |
| None | Does not translate the amounts. All numbers will be listed in the base currency of the transaction subsidiary. |
Saved Search Reports: The translation preference is set in the report customization. Most reports will be set to "Per-Account" or "None".
Not all saved search reports offer consolidation and currency translation. If the consolidated exchange rate field is not visible, that report does not support consolidation.
For example, NetAsset Complete Subledger Detail does not offer consolidation.
Instructions: Navigate to the report and click "Edit This Search". Open the "Results" subtab. Select the translation preference from the drop down box labeled "Consolidated Exchange Rate".
Note: A new report will need to be saved if any of these setting are changed in a locked report.
Scripted Reports: The translation preference is an available filter on the reports.
Instructions: Navigate to the report. Open the filters at the bottom of the screen. Select the translation preference from the drop down box labeled "Consolidated Exchange Rate".