Track Unresolved Foreign Currency Deposit Exceptions

A deposit is visible. Is its supporting evidence complete?

For HVAC contractors receiving foreign-currency customer payments, an invoice and a bank deposit may describe the same transaction without providing a complete audit trail. A difference between invoice and settlement dates does not, by itself, prove an error. Nor should amounts in different currencies be treated as equivalent without the documented conversion basis.

Use this review to identify missing support. It does not determine tax treatment or authorize a bookkeeping adjustment.

Review foreign currency deposit exceptions

• Collect: retain the customer invoice, payment reference, transaction currency, recorded date, settlement advice and documented exchange-rate source. Confirm that the records belong to the same business account and period.
• Compare: match references across the invoice and settlement evidence. Distinguish timing differences from missing documents. If a record is unavailable, identify exactly which evidence is needed instead of guessing its contents.
• Document: maintain an exception report with the transaction reference, available evidence, missing support, responsible reviewer and next action. Track unresolved items until the reviewer has sufficient support for a conclusion.

A hypothetical example

A contractor has a foreign-currency invoice and a bank record of a customer deposit. The preparer matches the customer reference and business account, but the records do not identify the exchange-rate source used in the books.

The preparer keeps both documents and records the evidence gap in the exception report. The reviewer requests the settlement advice and documented rate source. Until those records arrive, the item remains unresolved. Neither person invents a conversion rate, records an assumed gain or loss, or declares the payment incorrect merely because the dates differ.

What the reviewer should receive

A useful review pack contains the source references, a record of the comparisons performed, and an exception report showing what remains open. The next reviewer should be able to trace each conclusion to its supporting records and see who owns the follow-up.

Before closing the review, check that each item has either a supported conclusion or a clearly documented unresolved exception. Keep the evidence and reviewer notes together. An incomplete record is a reason to obtain support, not a reason to force a match. This educational workflow proposes internal record checks; the applicable accounting policy and tax requirements need separate consideration.

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