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Availability: This guide describes supported workflows from source notes. Confirm the controls and results in your deployed web, iPhone or iPad version.
Why a year-end adjustment might be needed
A USD invoice or supplier bill can be worth a different CAD amount at the reporting date than when it was first recorded. Cashflow Pilot has a controlled year-end FX adjustment workflow for supported USD receivable/payable balances, using Bank of Canada rates and safeguards.
1. Check outstanding USD amounts
Review unpaid USD customer invoices (accounts receivable) and supplier bills (accounts payable). Confirm that the original invoices, credits and payments are correctly posted before estimating currency effects.
2. Choose the proper reporting date and rate
Use the date required for your fiscal period and the applicable FX approach confirmed with your accountant. Bank of Canada daily figures are indicative and published on business days, not necessarily your bank's trade rates.
3. Understand an illustrative amount
Suppose a US$2,000 receivable was initially recorded at CAD-per-USD 1.35 (CAD $2,700) and is valued at 1.38 (CAD $2,760) for year-end. The difference is CAD $60 of possible unrealized exchange movement, before any other facts, adjustments or materiality review. A payable has an opposite economic direction.
4. Review before approving
Inspect the proposed journal, account assignments, invoice/bill links, rate and period. Confirm that the entry is not a duplicate and doesn't cross a locked fiscal period. Cashflow's supported workflow can create a next-day reversal for appropriate adjustments; verify both sides before posting. Don't add a manual duplicate of an approved automatic adjustment.
5. Reconcile and preserve the evidence
Confirm that original USD receivable/payable amounts are unchanged and that the CAD accounting effect appears only where intended. Save reports, supporting rates and journal details for your accountant.
See USD bank accounts and year-end checklist.
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