New NetSuite Feature: Foreign Currency Expense Reports
New 2019.1 Release Feature: Foreign Currency Expense Reports
A New Foreign Currency Expense Reports feature is set to be released as part of the NetSuite’s 2019.1 release. The feature facilitates expense reporting for employees who prefer to be reimbursed in a currency outside of their subsidiary base currency. Payments can now be made in the currency of the expense report and NetSuite will calculate and post the resulting fx adjustments.
Enabling foreign currency expense reports:
- The Multiple Currencies feature checkbox can be enabled by navigating to Setup > Company > Enable Features.
- Currencies must be created to be made available expense reports. Currencies can be managed by navigating to Lists > Accounting > Currencies.
Setting up employee expense report currencies:
First, the employee record must be set up with the currencies that will appear on their expense report. To configure expense report currencies:
- Navigate to the employee’s record.
- Select the Human Resources tab on the employee record.
- Click the Expense Reports Currencies subtab.
- Pick the currencies from the dropdown.
- Save the employee record.
Creating the expense report:
Three fields have been added to the expense report form for use with foreign currency expense reports:
- Currency (header level) – The default currency on the employee record on the person selected on the Employee field will populate in the Currency field.
- Exchange Rate (header level) – Exchange rate based on the date field, the base currency of the subsidiary on the expense report, and the currency selected.
- Total Reimbursement Amount (header level, summary subsection) – the total amount of the expense report to be paid out to the employee in the currency specified in the Currency field.
To create a foreign currency expense report:
- Enter the Employee name and date.
- In the header level Currency field, select the preferred reimbursement currency for the expense report. The exchange rate will automatically populate.
- At the line level, enter your expense.
- Save & Submit for Approval.
Paying the expense report:
The new foreign currency expense report feature allows payment of the expense report in the currency specified at the header level of the expense report. The exchange rate calculated on the payment is based on the conversion rate of the currency on the payment record to the base currency of the specified subsidiary.
After saving the payment record, the system will auto-calculate a revaluation and post the revaluation to a revaluation account.
The benefit of the foreign currency expense report feature is that employees now have the ability to select a preferred reimbursement currency, subsidiaries can pay employees in their preferred currency ad the system autogenerates revaluations based on the exchange rate gain and losses.