How Does NetSuite Determine Consolidated Exchange Rates for New Accounting Periods?

NetSuite determines the consolidated exchange rate by pulling the effective exchange rate as of the end date of the accounting period.When creating accounting periods in the future, NetSuite utilizes the most recent exchange rate available.When creating accounting periods in the past, such as during a new implementation, NetSuite uses the rate that was effective at the end of that specific accounting period.For optimal accuracy, the following recommendations apply:1. Create currencies and set up historical currency exchange rates before creating Subsidiaries (if using OneWorld) and before creating fiscal calendars.2. For enhanced data accuracy (though not mandatory), set all closing exchange rates (currency exchange rates at the end of each period) before creating Subsidiaries and creating fiscal years.In scenarios where fiscal years were created before historical currency exchange rates were set up during a new implementation, follow these steps:1. Navigate to the Consolidated Exchange Rate page once the historical exchange rates have been configured.2. Click on ‘calculate’ for the system to re-calculate consolidated exchange rates.