How to Understand and Manage NetSuite Consolidated Exchange Rates

Consolidated exchange rates are automatically generated when a subsidiary or an accounting period is created. The rates used in creating initial consolidated rates are based upon the rates in your Currency Exchange Rate table. For older periods, the default rate is typically used, while new rates are applied from that point forward if automatic updates are enabled (e.g., daily updates).

It is important to note that these rates are not expected to return to a 1:1 ratio unless manually set. This is especially true for average rates; historical rates might occasionally align, and current rates may show small differences. For example, the calculation USD->GBP*GBP->USD will not necessarily equal 1, as these are different rates.

To update rates, direct list edit can be utilized. However, direct list edit for consolidated exchange rates applies only to direct parent-child subsidiary relationships for open periods and excludes indirect rates (grandchild/grandparent) and elimination subsidiaries.

Reopening an accounting period is the mechanism to recalculate consolidated exchange rates.