In our previous blog, we looked at the Multi-Language feature in NetSuite, which is a key feature for any businesses that operate internationally. International companies also need to be able to conduct their business in multiple currencies. The feature Multiple Currencies in NetSuite streamlines the process of setting things up to prepare you for international transactions.
Setting Up Multiple Currencies in NetSuite
Let’s take a look at how you would set up the Multiple Currencies feature in your NetSuite account.
Enable the Feature
First, you need to enable the feature. You can enable Multiple Currencies in the International section of the Company tab in Enable Features.
Set the Base Currency
After enabling the feature, you’ll need to ensure that the correct base currency has been selected for your account. This is the default currency for your account and the currency that every other currency will be measured by. The base currency is also what NetSuite will use to record transactions in the General Ledger. If you have multiple subsidiaries, then you will need to set a base currency for each subsidiary.
You can see which currency has already been set as a base currency by navigating to Lists > Accounting > Currencies and checking for the “Yes” in the Base Currency column next to your preferred base currency. For most companies, this will already be accurate, since NetSuite initially pulls your base currency from the country edition of NetSuite you are using. If, however, you need to change the default base currency, you would do that on the Company Information page (if you do not use OneWorld) or on each subsidiary record (if you do use OneWorld).
Once any transactions have been saved on a subsidiary, the base currency can no longer be changed. You’ll want to make sure you have everything set up for Multiple Currencies before you start creating transactions!
Create Currency Records
Each currency type that you use in your NetSuite account is defined on a currency record. NetSuite automatically provides CAD, EUR, GBP, and USD when you initially enable Multiple Currencies, but to add any additional currencies you would need to create a currency record. To create a new currency record, navigate to Lists > Accounting > Currencies > New.
On the new currency record, you’ll name the currency and choose a country under the Default Locale dropdown. The selected default locale will tell NetSuite which format NetSuite will need to display for this currency, including the currency symbol and the placement of the decimal point. You can also change any part of the currency format by selecting the checkbox Override Currency Format and manually entering a sample amount with the correct symbol and format.
When you choose a country in the Default Locale field, NetSuite will automatically populate the ISO Code field. The ISO code is simply the official three letter code used to indicate which currency is being used (like USD for dollars, GBP for pounds, etc.).
And finally, you’ll need to enter the current exchange rate for this currency in the Default Exchange Rate field. To get the exchange rate, you’ll just divide the base currency amount by the corresponding foreign currency amount. To have NetSuite regularly update the exchange rate to keep it current, make sure the Automatic Update box is checked. This box will be checked by default if you have enabled the Currency Exchange Rate Integration feature.
Using Multiple Currencies in NetSuite
After you’ve set up multiple currencies in your account, you’re ready to start using them on entity and transaction records. Let’s take a look!
Entity Records
First, you’ll be able to make currency selections on entity records like customer and vendor records.
For example, on a customer record you’ll notice on the Primary Currency field under the Financial tab that the main currency for this customer has already been selected. The primary currency for a customer is pulled from that customer’s subsidiary, but you can change it to any of the currencies that are defined in your account.
At the end of the Financial tab on the customer record, you’ll find the Currencies subtab. Here, you can add additional currencies to this customer. When multiple currencies are connected to a customer record, you would be able to select a non-primary currency on transactions involving that customer.
Transaction Records
After you set up customers and vendors for Multiple Currencies, you’ll be able to choose the correct currency on your sales and purchases.
For example, once you choose a specific customer on a sales order, the additional currencies that were listed on the Currencies subtab for that customer record will be available for selection on the Items tab of the sales order. When filling out the items on a sales order, you would simply choose the appropriate currency from the dropdown list.
Conclusion
With Multiple Currencies in NetSuite, you can be sure that you are able to accurately manage currencies for all your entities and transactions.
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