This topic contains 1 reply, has 0 voices, and was last updated by Olivier Gagnon NC 7 years ago.
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jinman85- Contributions: 0
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I have a client with a subsidiary structure like so:
Company A : Euro (Grandparent)
Company B: British Pound (parent)
Company C: Euro (child)
Elimination Subsidiary Euro
During the profit and loss Company C is not translating 1 to 1 with Company A currency. There is a loss. A solution proposed is to update the Journal Entries to the inverse of the consolidated average but that doesn’t seem right. Has anyone else had similar issues with trying to get a child to be equal to the grandparent? I found another thread which was similar but not the same
https://usergroup.netsuite.com/users…considerations
Any assistance, especially from accounting personnel would be greatly appreciated.
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Olivier Gagnon NC- Contributions: 0
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Right what happens is the Euro gets converted to GBP which gets converted to Euro.
The simplest fix is to ensure the consolidated exchange rate between B and A is the exact inverse of the rate between C and B. Of course that will also affect all other children of B and B itself.
Do NOT modify the exchange rate of any transaction as that has nothing to do with consolidated exchange rates.
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