Setting Up Home Mortgage and payment under Personal

xincomxincom Member Posts: 6

Hi,

I am trying to manage both business and personal accounting in Wave. I am experience some issues. I wonder if there is a work-around. I use Wave to keep track on my Contractor works, and wants to use it also keep track on my personal mortgage. The main issue is how to keep track my home mortgage and other investment properties under Personal ..

1.). Under the Personal screen. The Chat of Account section, I cannot add "new account" like the Business screen. Therefore, I cannot add "Home Loan" at the Liability section. Is there a way to work around it?

2.). Filtering - Is there a way to create report by the Desrciption? or payee ?

3.). I also want to keep track of rental income. Is there a way to do that? and able to group/fitler which income from which property? How do I do it at the "Chat of account" ?

Thanks

edited June 17, 2018 in Accounting

Comments

  • xincomxincom Member Posts: 6

    Also, since it is a Mortgage of a "sum" payment, is it possible to splite the catagories into principal and interest ?

    Thanks

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @xincom.

    1. You can add a new account on the Personal tab, they're just called "Financial categories" on there. The button should be at the same place as the Add Account button for your business.
    2. You can't create a report by description. You can search by description in the new version of Wave, but your account hasn't been migrated just yet. There is, however, a report of Sale by Customer on your Reports page. That might be what you're looking for.
    3. Your best option here would be to create individual income account for each of your properties. Once that's done, create individual products on the Products and Services page, under Sales, for each of your units. Choose the right income account for each of those products. This will allow you to pull up reports for each property.
    4. You could if you wanted to. You would create two separate liability accounts: "Morgage Payable" and "Mortgage Interest Payable."
  • xincomxincom Member Posts: 6

    HI Alexia,

    Thanks for quick and helpful response. It make me feel more confidence to use Wave. Thansk for your support, you have made the software better and your user friendly. :smile:

    On the side note, regarding the #4 suggestion about creating to 2 different Liability accounts. I did that. Then, how do I do it on the "Transactions' screen? I mean, I am "Accounting" tab -> "Transactions". At the screen, under the "Catagory" column/section, it only allows me to select 1 catagory. So, a sum payment of say "$2000", I cannot split in to 2 catagories.
    Also, when I click/open the Catagory, it shows only Expense, Income, Asset, and Equity. Are you saying, I should also mannually spilt the transcations into 2, then catagorize them?? If so, I still cannot see the Liability section ..
    Would you please help guide me a proper and efficient way?

    Thanks

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Thank you so much, @xincom! I'm more than happy to offer my help! Wave, both as a product and as a company, are here to make your life a little easier, and we take that seriously!

    I think you might be best handling this as a journal transaction. To create a journal transaction, click on "More" in the top-right corner of the Transactions page and choose "Add a journal transaction".

    I'm assuming here that this mortgage was used to pay for a property for your business, right? If that's the case, here's what your journal entry should look like.

    • Debits the Asset account for your property (if you haven't created that already, you'll have to do it in your Chart of accounts) for the amount of the mortgage.
    • Debits the "Interest Expenses" expense account for the amount of the interests thus far.
    • Credit the Mortgage Payable liability account for the mortgage
    • Credit the Mortgage Interests Payable liability account for the amount of the interest.

    This will set up your accounts starting balance. When you record a payment, you'll categorize it as "Transfer to a Bank, Credit Card or Loan". You'll then have the option to pick the right account. If you need to split a payment between your mortgage and your interest, you can do that by choosing the transaction and clicking "Split that transaction", on the panel on the right.

    Let me know if you have any more questions! I hope this all helps!

  • IanMIanM Member Posts: 7

    I am also trying to split my mortgage payment between interest expense and mortgage payable. While viewing the transactions, I am able to split the payment and can designate the interest expense. However, under the "categories" tab, I cannot find my Mortgage Payable account. Why are only some accounts listed under "categories" and "account"? Shouldn't all buisness accounts be listed under both descriptions?

    I could complete this transaction in a journal entry but that doesn't seem very efficient. I would have to delete the mortgage payment from transactions and create a new entry every month for multiple properties.

    Any help would be very appreciated!

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @IanM.

    Only payment accounts (so bank accounts, credit cards and so on) will show up under the "Account" drop-down menu. For "Category", income accounts won't show up for expense transactions and expense accounts won't show for income transactions.

    If you've created both "Mortgage Payable" and "Interest Payable" as Liability accounts, they should both show at the very bottom of that list. Those accounts do not exist by default, you'll have to go and create them in your Chart of Accounts if you haven't already.

  • IanMIanM Member Posts: 7

    I have the accounts set up with interest as an expense and mortgage as a liability. Interest expense shows up under "category" and mortgage payable shows up under "account." I need the mortgage payable to show up under the "category" tab as well. Is there a way for me to customize which accunts show up?

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @IanM.

    If it was set up as a Loan or Line of Credit, it's considered a payments account, so it'll only show up in the Account drop-down. With that said, you can record payments by categorizing an expense as "Transfer to a Bank, Credit Card or Loan". Afer choosing that category, you'll see your mortgage as an option.

  • IanMIanM Member Posts: 7

    To set up a transfer I would have to select two transactions. The only transaction that I have is the mortgage payment. Is doing a journal entry every month the only way to solve this? If so, Wave should consider adding more customization so that the software can work for everyone.

  • IanMIanM Member Posts: 7

    OK, I found out my issue. When creating the Mortgage Payable account I had it set up as a payments account by accident. Problem solved, thank you for the help.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Happy to hear it, and happy to help @IanM!

  • JLSkoczekJLSkoczek Member Posts: 2

    If you had an "income account" for each property would there be a way to run a P&L for each property?

    @Alexia said:
    Hi, @xincom.

    1. You can add a new account on the Personal tab, they're just called "Financial categories" on there. The button should be at the same place as the Add Account button for your business.
    2. You can't create a report by description. You can search by description in the new version of Wave, but your account hasn't been migrated just yet. There is, however, a report of Sale by Customer on your Reports page. That might be what you're looking for.
    3. Your best option here would be to create individual income account for each of your properties. Once that's done, create individual products on the Products and Services page, under Sales, for each of your units. Choose the right income account for each of those products. This will allow you to pull up reports for each property.
    4. You could if you wanted to. You would create two separate liability accounts: "Morgage Payable" and "Mortgage Interest Payable."
  • ErikErik Administrator Posts: 187 admin

    Hey @JLSkoczek at this time, you would not be able to run a P&L for an income account. If you are interested in having a separate report per property, you might benefit from setting up each property as a separate business in Wave. You would then be able to assign specific income and expense categories to the property and have its reports separate from other properties.

    You can learn about adding businesses here: https://support.waveapps.com/hc/en-us/articles/208624306-How-to-add-a-new-business-to-your-Wave-account

    edited January 11, 2019
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