If your company uses NetSuite across multiple countries or employs various currencies for its daily transactions, dealing with fluctuating exchange rates between invoice/bill dates and payment dates becomes essential. If you need to allocate these gain or loss differences to specific accounts tailored to your requirements, then the following feature is designed to address your needs.

Introducing the Foreign Currency Variance Posting Rule in NetSuite: This feature enables you to manage foreign currency variance efficiently. It consists of criteria sections that determine the source of revaluation transactions and a Destination Account field that specifies the variance posting account. While currency gains and losses resulting from revaluations are typically recorded in system-generated variance accounts when foreign exchange rates change, this feature allows you to direct these amounts to independent variance accounts as needed.

To make use of this functionality, follow these steps:

1. Go to Setup > Company > Enable Feature > Foreign Currency Variance Mapping. This advanced feature can be located within the Accounting subtab.
2. You can create, view, and edit these rules via a custom role with the "Foreign Currency Variance Mapping" permission, granting full-level access. This permission is included in the standard Administrator role.

Scenarios in which you should create foreign currency variance posting rules:

1. Differentiating foreign exchange variance accounts based on source Accounts or Account types.
2. Posting to distinct variance accounts based on Class, Departments, Locations, or Subsidiaries.
3. Utilizing separate variance accounts for Realized/Unrealized gains and Realized/Unrealized losses.
4. Establishing separate variance accounts for all Intercompany accounts or distinguishing between intercompany payable and receivable exchange variances.

Every variance posting rule must have a distinct set of criteria. Transactions are assessed against these foreign currency variance posting rules according to rule priority. Once a matching rule is identified, the evaluation ceases, and currency revaluation takes place. You can create these rules using CSV import.

To handle situations with multiple applicable rules, the 'Prioritize Rules' function is employed. When more than one rule fits a transaction, the priority number of the foreign currency variance posting rules determines which destination account the variance is posted to. Rules with lower priority numbers take precedence in deciding the posting account.

Do you require assistance or support regarding the implementation of this feature? Set up a consultation with us today.