Review foreign-currency adjustments at year-end

Reviewed against Cashflow Pilot B.10.280 source notes · 11 Oct 2026 · Estimated 3 min read

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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.

Scope: A/R and A/P adjustment tools do not mean every foreign-currency account or tax treatment is automatically revalued. Your accountant should confirm the appropriate policy.

See USD bank accounts and year-end checklist.

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