I realize this is an accounting group but maybe treasury people also read the posts here?
We are a USA company but have a supplier located in Canada who does work for us. We receive a bill from them each month for about $10,000 USD. Each bill includes a foreign exchange adjustment of several hundred USD. Do we have foreign exchange exposure here? Should we be doing something about this? Thanks.
Sara
I don't think you need to do anything as long as you are receiving and paying the bills in US$, they are converting the payments into CA$ and charging you for any differences
I agree that as long as you are paying in US currency there is no foreign currency conversion issues. I wonder about the bump you mention since the Canadian dollar is worth less than the US dollar. On the other hand there could be duties associated with the import of the product from Canada depending on what it is. I work for a company that has offices in Canada so this doesn't come up but I used to work in public accounting so am aware of foreign currency issues.
I hope you have found this useful. If you have additional questions I can always talk to some our people in Canada to find out why this bump would occur.
Thanks,
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.