Multibook parallel currencies made easy by Netsuite.

Whenever the same business event requires different accounting treatments, whether because of the industry-specific rules, country-specific rules or both, different reporting outcomes will occur. In order to report financial results within compliance based on multiple accounting standards concurrently, accounting departments can now leverage NetSuite Multi-Book to comply with multiple sets of financial books in parallel, and issue your financial statements in accordance with whichever accounting standards are required. Netsuite's multibook can handle different use cases , today we will present a case whereby an American Holding company with extensive operations in Peru needs to keep two parallel books one in Peruvian Sol (for local reporting) and one in USD for group analysis.

USE CASE - American based Holding company with subsidiary in Peru , they need to keep two parallel books , one in Peruvian Sol and another one in USD in a 'mirror' mode. Once configured , Netsuite will automatically generate for each entry in Peruvian sol in book 1 an underlying mirrored entry in book 2 in USD.

An invoice for 5000 Peruvian sol is issued to a Customer , please note that we are in the Peruvian Subsidiary (1) and that the Currency of the Invoice is the Peruvian Sol (2). With the Multibook activated netsuite attaches another Tab to the Invoice form which is called Accounting Books. Let us analize the G/L impact of this transaction , you will see that there are 2 G/L one for each book. In Accounting Book 1 we have the transaction expressed in Peruvian Sol (See Below)

In book 2 we have the same transaction mirrored , but this time in USD and at the relevant Exchange rate.

Reporting among all the Books has been facilitated by introducing a 'Multibook Balance Sheet' and Profit and Loss which allow the user to have a side by side report of each book making easy to analyze the various transactions simplifying time consuming reconciliations.

NetSuite Multi-Book eliminates data entry replication and reduces the need for error-prone manual adjustments from your accounting and reporting processes due to managing unique sets of books per accounting standard. With pre-built mapping capabilities between your primary and secondary chart of accounts, the NetSuite Multi-Book engine can record all book-specific activity based on a single business transaction from the general ledger, revenue recognition, expense amortization, depreciation, P&L allocations and more.

Very few Applications can automate this highly complex and time consuming process , Netsuite does it and it does it well ! Teamfield Group is a global alliance Partner which can consult and implement Netsuite and PBCS indepently and globally , Contact us at marina@tmfldgroup.com for further information about Nesuite One World and how we can Design your global business processes in the cloud.