NetClose - Amortization Exchange Rate Handling
Overview
For each amortization, NetClose uses the currency exchange rate from the date the source transaction was created in NetSuite, if available. This keeps the rate consistent and precise for multi-book and consolidated views.
This article explains how NetClose resolves the exchange rates. It applies to accounts using Multi-Book Accounting, Multiple Currencies, or OneWorld. In a single-book, single-currency account no conversion occurs, and rates are treated as 1.
How NetClose resolves the exchange rate
For each accounting book, NetClose resolves the rate in this order:
- The exchange rate from the amortization's source transaction, resolved per accounting book.
- If there is no source-transaction rate, the historical rate from NetSuite's currency exchange rate table as of the amortization's capitalization date.
- If neither applies (for example, the amortization currency already matches the book's base currency), a rate of 1 - no conversion.
Rates are resolved per accounting book. The rate is resolved separately for each accounting book, so a secondary book can use a different rate than the primary book when the source transaction recorded different rates per book.
Accounting Books subtab on the amortization record
On a Multi-Book account, each amortization record includes an Accounting Books subtab with one row for each accounting book tied to the amortization's subsidiary.
- Base Currency - the book's base currency. When Foreign Currency Management (FCM) is enabled, the currency assigned to the subsidiary for that specific book takes precedence over the subsidiary's default currency.
- Initial Balance and Remaining Balance - shown in the book's base currency (the amortization amount converted at the book's exchange rate), not the amortization's own currency.
- Exchange Rate - the rate applied, shown to five decimal places.
If the amortization has an accounting book override, only that book's row appears. Otherwise, all active books for the subsidiary appear. The subtab does not appear when Multi-Book Accounting is disabled, or on a new amortization that has not yet been saved. For how to assign an amortization to a specific book, see Create a Multibook Amortization.
How rates apply to journals
When amortization journals run, the primary book uses the body-level exchange rate and each secondary book receives its own rate on the accounting book detail lines. Book-specific amortizations - those posting only to a specific book - convert using that book's rate.
Modifications post at the correct rate. Exchange rates are also applied when you generate a modification on an existing amortization, so modification journals post at the correct rate without a follow-up adjustment.
Transfers account for rate change. When an amortization is transferred and the currency changes, the system pulls the exchange rate for the new subsidiary and applies it going forward.
Consolidated reporting
When the Amortization Roll Forward or Waterfall report is consolidated to a parent subsidiary, NetClose applies the source book's consolidated exchange rate to the parent. For the currency symbols, filters, and row-level display in those reports, see Amortization Reports.
