NetSuite hedge management automation

Manage commodity and FX risk with accurate tracking, structured reporting, and aligned financial workflows.

NetSuite Hedge Management Automation
PROTECT MARGINS

Managing commodity and currency risks

NetSuite Hedge Management Automation helps protect businesses exposed to market volatility, whether from foreign exchange (FX) fluctuations, interest rate shifts, or commodity price movements like copper. These exposures can create significant margin risk if not properly managed.

Without automation:

  • Manual hedge tracking increases the risk of pricing and execution errors
  • FX gains and losses are inconsistently recorded, reducing financial accuracy
  • Timing mismatches between payments and hedge execution create unnecessary exposure
  • Lack of end-to-end visibility complicates reporting and compliance

These challenges make it harder to forecast accurately, manage working capital, and protect margins with confidence.

MINIMISE EXPOSURE

How the NetSuite Hedge Management process works

OneKloudX implemented a structured hedge management framework within NetSuite that automates the lifecycle of hedge transactions, from order entry through to monthly settlement reconciliation. Key capabilities include:

  • Hedge exposure using market rate integration (eg LME-linked prices or FX rates)
  • FX contract management aligned to purchase order requirements
  • Automated reporting for all commodity and FX positions
  • Monthly hedge settlement workflow incorporating delivery, payment and production usage data

This solutions connects finance, procurement and operations to manage risks like currency and commodity exposure through a single co-ordinated process.

Core process overview

Stage 1 – Order placement: Hedge planning begins once a customer order is confirmed

Stage 2 – Hedge setup: Create contracts to manage exposure across FX, commodities and other market-driven risks

Stage 3 – Purchase and delivery: Materials are purchased in AUD or FX and delivered to production

Stage 4 – Reporting: Monthly hedge reports are generated, aligning open positions to usage

Stage 5 – Settlement and payment: Supplier payments and hedge settlements are matched and reconciled.

Reports and insights provided

1. Hedge report – Monthly view of production-linked hedge contracts

2. Hedge confirmation register – Track all hedge transactions, including commodities, raw materials and FX contracts

3. Hedge settlement report – Reconcile hedge contracts by date with detailed visibility across FX and commodity positions

4. Sales order hedge report – Shows customer orders linked to hedged materials

5. Raw materials hedge snapshot – Comparison of forecast vs actual hedge requirements

6. Outstanding FX contracts report – Tracks open FX positions for forward visibility.

Business benefits

1. Minimise price exposure – Lock in costs and protect against commodity price and FX volatility

2. Financial accuracy and compliance – Ensure AR/AP align with hedge contracts for audit-ready settlement

3. Timely supplier payment – Automate payments in sync with hedge timing and trade finance

4. Improved cash flow predictability – Forecast based on the true cost of goods and reduce FX surprises

5. End-to-End risk management – Unified visibility from sales order through to raw material usage

STRENGTHEN FINANCIAL CONTROL

Who is NetSuite Hedge Management automation ideal for?

We help businesses automate complex financial risk management in NetSuite using flexible frameworks that fit your industry. Whether managing FX risk, commodity price movements or other exposures, OneKloudX helps turn your ERP into a proactive control system rather than just a reporting tool.

  • Manufacturing, mining, or distribution businesses exposed to LME indexed commodity pricing.
  • Businesses sourcing in foreign currency and seeking hedge automation in NetSuite.
  • CFOs, Treasurers and Procurement teams needing better financial risk control.

Protect your margins from margin volatility

Don’t let fluctuating currency, interest rates, or commodity prices erode your profits. Our automated NetSuite Hedge Management solution helps you proactively manage financial risk, giving you peace of mind and control over your bottom line.