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Month-End Workflow

This article explains CNS Treasury’s month-end workflow for reconciling deals, discontinuing hedges, and generating journal entries for accounting.

 

1. Overview

At month end, CNS Treasury streamlines the reconciliation and accounting process so you can confidently close out FX positions, record discontinues, and generate journal entries for posting into your accounting system.

2. Step 1 – Reconciliation

Purpose: Confirm that CNS positions match bank Mark-to-Market (MTM) records.

How to Run:

  1. Wait for CNS to notify you that reconciliation is ready (after receiving MTM files from banks).

  2. Go to View Reports → FEC Reconciliation Report (report code 5508).

  3. Select End of Month Date for both start and end dates (e.g., 31/07/2025).

  4. Run the report.

What You’ll See:

  • Side-by-side comparison of CNS deals vs. bank MTM deals.

  • Any mismatches flagged with suggested fixes.

Benefit:
Takes minutes instead of manually checking in Excel, ensuring your position is accurate before continuing.

3. Step 2 – Discontinue Workflow

Purpose: Reflect the conversion of forecasts (e.g., purchase orders) into invoices by discontinuing hedge amounts.

Example Workflow:

  • A purchase order of NZD 4.5 million becomes an invoice.

  • To balance, discontinue NZD 4.5 million from the hedging contract.

How to Run:

  1. Go to Hedge Accounting → View Data → Action → Discontinue.

  2. Enter:

    • Discontinue Date (e.g., 30/07/2025).

    • Amount (e.g., 4.5 million).

    • Basis Adjustment (Yes/No).

    • Day Lag (optional).

    • Discontinue Note (optional).

  3. Save.

Result: Hedge balance reflects the discontinued portion.

4. Step 3 – Journal Entries

Purpose: Generate accounting entries reflecting reconciled and discontinued positions.

How to Run:

  1. Go to Hedge Accounting → Journal Entries.

  2. Select the month-end date (e.g., 31/07/2025).

  3. Run the report.

Output Includes:

  • Short-term vs. long-term assets and liabilities.

  • Derivative asset/liability balances.

  • Fair value reserve impacts.

  • P&L impacts (from discontinues or de-designations).

Integration Options:

  • Export and post manually into your accounting system.

  • If enabled, post directly via CNS ERP integration.

5. Summary Workflow

  1. Reconcile → Ensure positions match banks.

  2. Discontinue → Adjust for invoices and de-designations.

  3. Generate Journals → Record accounting impact.

6. Support

For further assistance, see the CNS Knowledge Base or contact support@cnstreasury.com