Bill Purchase doesn't have option to add Asset?

JustinJustin Member Posts: 1

Hi,
I have a particular situation where you purchase something as an asset, but under the bill option there is only expense / COGS. Where can I add my purchase to an asset account?

2) If my purchase is for COGS item, I purchase it, it goes to COGS as expense, but at the same time doesn't it need to balance the inventory asset side? Which is weird because everytime I do a bill purchase my equity goes down but reality is I already have the inventory right to balance the account?

I/m confused.

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Comments

  • OINC_Catering01OINC_Catering01 Member Posts: 2

    Hi Justin .

    I had the same problem.

    1) Best thing to do with Wave is to post the Asset cost directly into your respective asset account. Therefore, crediting your bank/cash and debiting the asset.

    2) With regard to your inventory issue, you'll have to run the inventory control separately (like on an excel spreadsheet). Open an asset account for inventory on on the chart of accounts page but do not flag it as a payment account, then load your item in the products section and allocate it to the inventory account you've created, thereafter, once you capture a bill for the inventory item, Wave will automatically debit your inventory (asset) and credit your accounts payable (liability), at month end you'll have to post a journal entry to clear out the inventory and add it to COGS expense. Hereby balancing your manual inventory control sheet with wave and your bank/cash will clean out the accounts payable with each bill payment you allocate.

    I hope this helps!
    Regards.
    Dewald

  • jason1234jason1234 Member Posts: 36

    Hi,

    Example, I bought an ice cream scoop from HOI Shop. How do I record this?

    I created a bill and made a new product "ice cream scoop" and inserted it in the bill.
    This product I made, I categorised it under "Office Supplies", which I think might be wrong.

    I understand that this item is actually "Kitchen Equipment" so I created a new account by that name under Assets / Property, Plant, Equipment. But how do I link this item to "Kitchen Equipment" account so that I can track what I bought under this account in the future? Kitchen doesn't show up in the expense category when I create the product.

    Or am I doing it entirely wrong? Haha

    TIA!

  • NopDesign_ConnorNopDesign_Connor Member Posts: 22 ✭✭

    @jason1234 Not sure why, but accounts under Property, Plant, and Equipment don't show up as a category for bills. You can get around that by just putting Kitchen Equipment under Other Long-Term Assets.

    All you'd do after that is categorize the item on your bill as Kitchen Equipment, and you're good.

  • jason1234jason1234 Member Posts: 36

    @Connor Nop Awesome! Thanks.

  • NopDesign_ConnorNopDesign_Connor Member Posts: 22 ✭✭

    No problem!

  • RCrittonRCritton Member Posts: 1

    Was this the only solution to this? If it's done this way, I can't tie assets to a vendor.

  • AlexiaAlexia Administrator Posts: 3,314 admin

    Hi, @RCritton.

    If you're handling inventory in Wave, here's how you would do it. You absolutely can use an asset as a category for line items on bills. You won't be able to do it from the Products and Services page, but you can set a specific asset as the category in the bill proper, on the Bills page.

  • kitskykitsky Member Posts: 9

    Hi,

    I have the same issue - can't post to Fixed asset account from Add Bill page.

    I try to add a bill - hoping to charge straight to a Fixed Asset account. But Bill page does not show any fixed asset account for 'expense category'- instead, for assets, I have a choice of only 3 accounts - Account Recievable, Other Deposit and Rental deposit.

    I do not understand why not all the accounts are available when I do Bill. What am I missing?

    Attached screen shots of COA - indicating I have the Fixed Asset accounts, and Add Bill screen where Fixed Assets are not an option in the 'expense category' field, and screen shots of 3 available assets accounts in Add Bill page. Very strange inconsistent and illogical behaviour...

    Hope someone can help.

    Thanks
    Kit

  • AlexiaAlexia Administrator Posts: 3,314 admin

    Hi, @kitsky.

    There's an issue with bills stopping some users from assigning accounts from the Property, Plant and Equipment category. We're working on a solution for this, but in the meantime, you can around it by making putting these accounts under Other Long-Term/Short-Term Assets instead. If you haven't put any transactions in those asset accounts yet, you'll be able to move them by clicking the pencil next each of them on your Chart of Accounts.

  • kitskykitsky Member Posts: 9

    Hi @A;exia,

    Thank you very much for you suggestion. I tried your suggestion. Still only 3 Assets accounts that appear on Add Bill page.

    I do not understand at all why Wave need to restrict the categories (should be called accounts) that are accessible from transaction pages (bill, invoicing, receipts etc) or setup pages (product and services). Please make EVERYTHING in the Chart of Accounts available to be used from any page. We as users know what is right and wrong to use (and if we get it wrong, it is easy to correct).

    Putting these artificial restriction on your software is like installing a permanent brake on a Ferrari. If I recall right, older version of Wave accounting was a lot more sensible. Please remove those artificial technical restriction..

    It is unfortunate, I need to limp around finding solutions and workarounds for something that should be so simple... I still don't know what else to do - I tried an expense entry - but that cannot be tied to any vendor... or maybe next a journal entry which is pure accounting with no useful information...

    I hope the Wave team understand that this is a serious problem (a BUG).. a showstopper... I have quite a number of Fixed Assets bills to key in as we are renovating and buying new items... And I am afraid to find other illogical restrictions that will need workarounds...

    Thank you for helping.

    Cheers,
    Kit

  • kitskykitsky Member Posts: 9

    @Alexia.. sorry typo on your name up there... sorry

  • AlexiaAlexia Administrator Posts: 3,314 admin

    Hi, @kitsky.

    Thank you for your feedback!

    In most cases, these restrictions are to prevent accounting mistakes. For example, bill items should never be assigned to income accounts, so offering that option could invite accidental mistakes on the part of new users, especially users with no prior accounting experience.

    With that said, asset accounts that are not under Property, Plant and Equipment should show up on your category list in bills. I tested this on my end with a new asset account under Short-Term Assets, and it is appearing in my account list for bills. Can you confirm that you've successfully managed to move those accounts outside of Property, Plant and Equipment?

  • kitskykitsky Member Posts: 9

    Hi @Alexia,

    Thank you for prompt reply. I suppose I only tested for Other Long Term Assets - please tell your technical team, Other Long Term Assets accounts also don't show up. Short Term assets do appear on the new bill page. However it goes against the grains for me to put Fixed Assets/PPE under Short Term Assets.

    Does it mean now, I change the accounts classifications back to PPE after I finish postings? Because if not, my reports will be wrong. Solving one issue but creating another one? And I have a bunch of PPE bills for different PPE accounts!

    Please, please, please remove accounts restriction - doing it for new users is a bad reason - the system can issue a warning instead so that new users are aware of what the usual practice should be. But if user choose to go ahead, your system should allow it. It is a shame when we cannot do what is real/required because of artificial technical reasons!

    More examples of unnecessary technical restrictions:

    • Invoicing - only allow Income accounts. Sometimes, we take deposits, which goes into Liabilities accounts, or recoup expenses, which go into Expense accounts.
    • Receipts only allow Expense accounts - same issue as bill - we buy fixed assets too...

    All in all, Alexia, there are many good things with Wave, but if this is to be an accounting system, it needs to serve basic accounting needs. I am at the brink of giving up.. because of all these illogical, and in my opinion, over-designed, restrictions. The basic functions are there, I wish you hadn't put in rules which make your system so much less useful.

    When workarounds are needed, you know you are failing users. And my needs are simple - create a bill for my PPE purchases. Normal day-to-day business transaction and I can't do it without jumping through hoops... sigh!

    Thank you for reading my frustrations.

    Cheers
    Kit

  • AlexiaAlexia Administrator Posts: 3,314 admin

    Thanks again for taking the time to share your feedback, @kitsky.

    It's curious to me that you aren't seeing Other Long-Term assets for bill item categories, I'm able to see them fine on my test account. I'll have to investigate this further.

    As for everything else, we do hear your frustration. I'll make sure to forward this to the right people on our end.

  • kitskykitsky Member Posts: 9

    Hi @Alexia,

    I did a bit more investigations - if I have created the accounts under PPE, even though I changed them later to LT or ST Assets, the accounts will still not appear in Create.

    So I have to created the under other LT or ST assets.. Then they will appear in the Bill screen.

    And then it seems that if I now reclassify those accounts back to PPE, it will still appears in Bills. So, long as I did not first create the accounts under PPE.

    I think you have got a BUG....

    Thanks
    Kit

  • AlexiaAlexia Administrator Posts: 3,314 admin

    Thanks for letting me know, @kitsky. I'll forward this information to our developers!

  • AlexiaAlexia Administrator Posts: 3,314 admin

    Interestingly enough, @kitsky, it seems to only affect accounts created as Property, Plant and Equipment. If you create your account as a "Other Long-Term Asset" and then immediately move it to Property, Plant and Equipment, it works fine.

  • DieloTopacioDieloTopacio Member Posts: 4

    Just to share how I do it, I have a Capital Expense account where all fixed assets purchases will go. From there I have a separate asset register to manage my assets and depreciation. From that spreadsheet I have a pro-forma journal entry to book asset capitalization and depreciation.

    To simply put it:
    Acquisition of asset:
    Debit Capital Expense
    Credit Payment Account (or Payable whichever is applicable)

    Asset Capitalization:
    Debit fixed asset account
    Credit Capital Expense

    Capital Expense will always be zero. It's more of a suspense account for fixed assets. Understand it's time consuming but that's how we do it even in large organizations as capitalizing fixed assets acquisition doesn't necessarily have to be on acquisition date.

  • kitskykitsky Member Posts: 9

    Dear Dielo,

    Thank you for sharing. Interesting - creating a suspense account for clearing later.
    Agree, we do need to keep a separate Fixed Assets/PPE register.. which I often update once a year by comparing beginning and ending balances of the PPE accounts.

    It is a workaround... but I prefer direct posting as it will allow me to trace back to the source document directly...

    But thanks for sharing.

    Cheers
    Kit

  • AdeelAdeel Member Posts: 1

    Hi.. I just started using the waveapps and find it unable to figure out how to lodge an expense related to an equipment I have purchased.

    I assume it has to be entered creating a bill and then corresponding it with the right expense account. In my case it's a long term asset i purchased however I am unable to locate the right account to enter the entry. There are other expense accounts visible but not anything related to long term assets, equipment or machinery

    Can anyone pls help me figure out how. Would appreciate much.

    Thank you

    Adeel

    edited June 26, 2018
  • AdeelAdeel Member Posts: 1

    Hi

    I am too experiencing similar issue.. being unable to complete an entry as an equipment purchased. Equipment and plants account does not show up in the drop down menu while trying to enter the bill.

    Can anyone help me with how to do it ?

    Appreciate for your help

    Thank you
    Adeel

  • AlexiaAlexia Administrator Posts: 3,314 admin

    Hi, @Adeel.

    There's an issue with accounts created under the "Property, Plant and Equipment" sub-category of Assets, where they don't show up for bills. We're working on resolving this issue, but I don't have a timeline to give as to when it'll be fixed. There are two things you can do in the meantime.

    1. You could temporarily assign those line items on bills on different accounts. Once they are paid, create a journal transaction that credits the temporary account you used for your bill and debits the right Asset account. This will make sure that the numbers in your accounts are all accurate, but it does add a step to every bill you create.
    2. You can archive the accounts you create under "Property, Plant and Equipment", and create them anew under a different sub-category (say, "Other long-term assets"). You can change the sub-category on those accounts to "Property, Plant and Equipment" after they've been created since this issue only affects accounts that were created as "Property, Plant and Equipment". This method will create a bit of clutter in your chart of accounts but will solve the issue immediately.

    Let me know if you need help with either!

  • AlexiaAlexia Administrator Posts: 3,314 admin

    Hi, @Adeel.

    As mentioned earlier in the thread, we're aware of this issue and are working on resolving it. Accounts that have been created under Property, Plants and Equipment don't show up as categories for line items for Bills.

    You can create an account under a different asset category (say, Other Long-Term Asset), and then change it to Property, Plants and Equipment, and it will show up just fine. You could also handle this through journal entries instead of bills until this is fixed.

  • mclunemclune Member Posts: 9

    Has the issue in this thread been resolved or is there a timeline when the issue will be resolved? When I create a bill I cannot see other long-term assets or property plant & equipment either. It would also be nice if the field length for Item, expense category, and descriptions were wider when you open up a bill or to be able to adjust the column widths in the user interface

  • AlexiaAlexia Administrator Posts: 3,314 admin

    Hi, @mclune,

    We're still working towards resolving this issue. It should only be affecting accounts created under "Property, Plant & Equipment", so if you create an asset under a different type and then change its account type to "Property, Plant & Equipment", you should be able to use that category without issues.

    Changing the category on accounts created under "Property, Plant & Equipment" doesn't currently fix the issue. Could that be what's happening with those "Other long-term assets"?

    We don't have a timeline as to when this will be resolved, but we are looking actively investigating.

    Thanks for your feedback on the Bills page, I'll forward it to the appropriate team on this end!

  • ZachwatsZachwats Member Posts: 1

    Hi @Alexia Thank you for all your effort in keeping Wave an awesome (and free!) tool. A gentle suggestion regarding this PP&E issue, it would be great to be able to easily re-categorize the transactions I have to put under "Other LTA's" today when the PP&E issue is resolved in the future -- versus re-entering all the data into its proper place. Thanks again!

    EDIT Looks like I'm able to add bills into PP&E after all! So, never mind, but still, thank you for all your responses!

    EDIT PART DEUX Bummer! I moved the Other LTA's to PP&E, for a moment it worked, but duplicated the entries, while cleaning it up, it's reverted back to not being able to categorize in PP&E. I'm now thinking a more stable product might be a better fit for me. Thanks though!

    edited September 20, 2018
  • AlexiaAlexia Administrator Posts: 3,314 admin

    We're sorry to see you leave, @Zachwats, but thank you for giving us a shot! I can tell you that our engineers are hard at work on resolving this issue and that other types of accounts do work as intended, but I understand how frustrating running into this can be.

    If you want me to notify why when it is resolved and give us another try, I'd be happy to let you know.

  • VichayaCVichayaC Member Posts: 5

    @Alexia , was this resolved? I'm unsuccessful to assign a bill to one of my asset/inventory accounts...I tried your recommended workaround i.e. to create a new asset account (other long term asset) but still when I go back to my bill, I do not see that option in the drop down list - the only asset type is accounts receivable

    edited January 3, 2019
  • DesDes Member Posts: 2

    @Alexia, I'm facing the same problem as above. Short-Term Asset account used to appear on drop down list. Now it refuses to show up for new bills. Old bills are fine. Creating new Short-Term Asset or Long-Term Asset account types doesn't work either.

  • BluiceBluice Member Posts: 2

    @Alexia
    I have also tried to create a Long term asset account and plant and equipment, which so not show up when creating a bill.

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