How to create a transfer between two accounts (e.g. categorize a credit card payment)

SystemSystem Posts: 370 admin

imageHow to create a transfer between two accounts (e.g. categorize a credit card payment)

In Wave, when you move money from one bank account to another, you need to record a transfer. This makes sure your account balances are correct, and that you won't mistake a simple movement between...

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edited December 6, 2018 in Help Center Discussion
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  • ripekaripeka Member Posts: 7

    If I am trying to code up the debit side of the transfer (money flowing out of account A to another bank account B), doing as you suggest here creates a CREDIT within the account A. Which nets off against the existing debit so the account won't reconcile.

  • LibinthLibinth Member Posts: 1

    I need to know how to transfer money from my personal to business accounts.

  • landonmoonlandonmoon Member Posts: 2

    Surely there has to be a better way to handle the payment of business credit cards. This is something the vast majority of businesses have to deal with. All the proposed solutions I've heard so far in Wave are clunky.

  • AnneskaAnneska Member Posts: 1

    What if there is no transaction showing (I accidentally deleted thinking it was a duplicate) How to you create a transaction between two of your own accounts?

  • AnnaMMAnnaMM Member Posts: 8

    Why is there a duplicate transfer created? And this then says 'Transfer Clearing'?

  • EmilyLEmilyL Member Posts: 3

    I'm new to accounting. If this Transaction is a "Withdraw" from my Checking Account - wouldn't this be a "Credit" to my Credit Card? I notice it's marked as a Withdraw above.

  • sunnyt7sunnyt7 Member Posts: 20

    What about when transferring from a USD account to CAD account? How can I match up the transactions manually, without Wave creating it's own transaction?

  • ChizobaChizoba Member Posts: 1

    The pictures you have in this guide and the directions do not match the current interface design. I am now unable to create transfers. The transactions page no longer looks like the images you have added here.

  • Saving_A_HomeSaving_A_Home Member Posts: 1

    In need to move transactions from my Business Account in Wave Accounting to my Personal Account in Wave Accounting. It used to be a very simple thing to do. When I follow these steps, I do not see my Personal Account in the list. How do I move a transaction so that it shows up in my Personal Account in Wave Accounting?

  • carthdcarthd Member Posts: 3

    There has to be some sort of bug here, because nothing happens after Step 4. The only option is Cash on Hand which gives an error anyway. The matching transaction is impossible to locate in Step 5. Please help!

  • NeilRNeilR Member Posts: 14

    @nutritioncoach said:
    This article does not explain why there is a duplicate transaction created. Are you supposed to delete the imported transaction??

    Its so stupid. You can't merge the new one with an existing one - You can't merge a transaction - like you could in the previous version. If you delete the newly created transfer it de-categorises the old one.

  • SlidecklySlideckly Member Posts: 5

    That makes sense and thank you for writing this guide, Katie. Here's my situation.
    I basically charge my business card for all my expenses. For example, subscriptions to abut 5 organization (Adobe, Microsoft Office, etc.). These charges aren't much for each month and it does create multiple expense entries. So, I pay them all off with my checking account. Basically, I have multiple purchase when I pay my business credit card. When this gets posted, I can't really match that one payment to all the other expenses, and I really don't want to do that.

    How do you handle the accounting for this situation?

    Thanks in advance!
    Mike

  • Navemitt001Navemitt001 Member Posts: 1

    Hi Katie
    I have both Credit Card and Current accounts being imported. However if I carry out the above process it creates a duplicate transaction. For example I make a credit card payment from my Current account. This payment is also reflected in the import of transactions from both the credit card and current account. If I now categorise the transaction in current account as per the above process, Wave creates a duplicate transaction in Credit Card account rather than linking the “transfer” transaction already present
    Am I doing something wrong?

  • SilvicaRoscaSilvicaRosca Member Posts: 1

    @NeilR said:

    @nutritioncoach said:
    This article does not explain why there is a duplicate transaction created. Are you supposed to delete the imported transaction??

    Its so stupid. You can't merge the new one with an existing one - You can't merge a transaction - like you could in the previous version. If you delete the newly created transfer it de-categorises the old one.

    Whenever I followed the instructions, I too would get the duplicate transactions titled "Created transfer". Here are the steps I took to fix it:
    1. Delete the "Created Transfer" transactions
    2. Ensure the remaining transactions had the same date. <-- VERY IMPORTANT! If you don't do this first, you will get duplicate entries.
    3. Update the "Transfer to" and "Transfer from"

    That fixed it for me.
    For my other transactions, I made sure to have the dates match, and I no longer got the "created transaction" duplicates.

  • NeilRNeilR Member Posts: 14

    @SilvicaRosca said:

    Whenever I followed the instructions, I too would get the duplicate transactions titled "Created transfer". Here are the steps I took to fix it:
    1. Delete the "Created Transfer" transactions
    2. Ensure the remaining transactions had the same date. <-- VERY IMPORTANT! If you don't do this first, you will get duplicate entries.
    3. Update the "Transfer to" and "Transfer from"

    That fixed it for me.
    For my other transactions, I made sure to have the dates match, and I no longer got the "created transaction" duplicates.

    Thanks I'll try that. It still seems a workaround to a problem they've introduced.

  • JaysonWonderJaysonWonder Member Posts: 15

    @AnnaMM said:
    Why is there a duplicate transfer created? And this then says 'Transfer Clearing'?

    I get the same issues. If I Wave matches the transfer for me, it stay transfer clearing as the category. How can I categorize my transfers by expense or income etc.? Yes I did a transfer but what was the purpose / reason / category of for the transfer is what I want to be able to capture. Tracking the use of monies

    Example, I upload my most recent statement and now see a transfer $of 500 payment made from a Bank Account to a Credit Card Account. I can see the the transaction in both accounts. I then categorize either one the transactions and select the transfer to/from option from the category drop down menu. It then finds and matches the other side of the transaction and offers it as an option (nice feature concept btw). I select the match and it automatically categorizes both transactions as "transfer clearing". So now it just shows up as transfer clearing forever??? That is how it is showing up on my reports etc. I want to be able to complete and match the transaction and be able to assign a category. In this case Credit Card Payment or Monthly Debt Repayment etc.... Shouldn't this be possible?.

  • JaysonWonderJaysonWonder Member Posts: 15

    @Libinth said:
    I need to know how to transfer money from my personal to business accounts.

    Can't do it... Here is the best option.
    https://support.waveapps.com/hc/en-us/articles/208622836-Handling-business-expenses-with-a-personal-bank-account

    Method needs to be improved as this does not make it easier for small and micro business who share accounts on occasion, especially in the early start up / struggle stage.

  • tommytommy Member Posts: 2

    How can an accounting package be taken seriously when recording transfers is this complicated.

  • IsopoIsopo Member Posts: 17

    This is the one and only reason why Wave is not perfecto for small businesses. Transfers should be available between accounts with different currencies, and the exchange number should be calculated automatically.

    For example, assuming my currency by default is in AR$ (Argentine Pesos), if I want to transfer USD1000 to my account in AR$, Wave should record USD1000 coming out from the USD Checking Account and the amount I specify in AR$ coming in to the AR$ Checking Account. If we are talking about AR$40000, then the currency exchange will be USD1 = AR$40.

    This is very important for countries were the currency exchange against USD is changing everyday.

  • BarbBarb Member Posts: 4

    Is this correct? What should my category be for the AUTOPAY of the credit card?

  • JamieDJamieD Administrator Posts: 1,145 admin

    Hey everyone! Appreciate all of the feedback you've given here and I'm more than happy to dive into this a little bit deeper. It seems as though a lot of you are having issues with the duplicate transaction (the created transfer). Just to add to @SilvicaRosca's answer; The reason why you are seeing the duplicate is because either A) The transaction for the credit card payment was never categorized correctly or B) The second half of the transfer hasn't landed in the bookkeeping yet. Technically, once the other half of the transfer is in your bookkeeping you should be able to categorize one of the transactions as a transfer to/transfer from and select the other transaction that it would have been linked to (please see screenshot)

    ^^ I also feel like this help centre article should give you a bit more guidance as well; https://support.waveapps.com/hc/en-us/articles/115004964143-Transfers-transformed

    @Mike_from_Slideckly I would like to get a bit of a stronger sense of what you're trying to accomplish here. Are you trying to move funds from one account to the other before you are making the payments on these expenses?

    @Isopo Our software currently isn't built for multi-currency in terms of transfers... Essentially, you would need to bookkeep this as unrealized gains/losses on foreign exchange.. however, those specific transactions would not be included in the reconciliation process which could get a bit messy.

    @landonmoon @NeilR @tommy More than happy than to take some feedback as to what your ideal workflow would be when creating a transfer in Wave -- Could you please elaborate/provide some specific detail as to how we can improve this product/feature in Wave? It's imperative that we get some sort of insight as to how our users would benefit from an idea/changed workflow presented by them to enhance their Wave experience. I would be happy to pass along your feedback to the product team.

  • janeDGCjaneDGC Member Posts: 2

    I need to know how to transfer money from my personal to business accounts.
    What happened to that functionality?? Ughh.

  • NeilRNeilR Member Posts: 14

    @JamieD
    The issue is with the automation you've added, as it actually limits what you can do. The frustration arises from the fact that something I could do quite easily a couple of different ways only a few months ago has been removed and replaced with a clunky workaround.

    My specific workflow: I have a set of agents that sell my products on my behalf for which they take a commission on each unit sold. The client pays them gross amount, they pay me the Net amount directly. For income reporting purposes I need to record the gross amount as income and commission as COGS. So they are invoiced for Gross.

    The current invoice feature doesn't allow for inclusion of the commission amount as a negative. Therefore to do this I was using Undeposited funds account:

    1. Gross amount invoiced in wave
    2. Net payment from agent is recorded in the automated bank feed.
    3. Gross amount manually entered in Undeposited funds and marked as invoice payment
    4. Commission amount entered in Undeposited funds
    5. Net amount transferred from Undeposited funds to Bank, and merged with automated feed

    By automatically creating the linked transfer, I can't complete step 5 and merge the transfer with the automated feed (which has the reference numbers etc with it). The system won't let me. So I have been told 'Just delete the automated bank feed transaction' - which seems pointless- why have an automated feed if I have to delete the items? And its more work - rather than ticking merge I have to start re-categorising etc.

    I would be quite happy just splitting the net payment using the split function (Gross split into Net and Commission) but the new filter applied to categories in the new version doesn't allow me to split a deposit into deposit and expense - only if its listed as Fee and Discount. I can't do this because the Fees and Discounts don't appear as COGS. Previous version you could choose anything from the category list - the new filtering limits what I can choose.

    My current workaround is to mark the automated net payment as an invoice payment, then manually enter an income payment for the commission and them manually create an expense for the commission which isn't really correct because it doesn't ever hit my bank account.

    (As an aside re: Workflow - the new UI has slowed my workflow down. I started in the IT industry a few decades ago using DOS based systems, so rely heavily on keyboard shortcuts etc - they're inherently faster than mouse actions. Basic tasks (categorisation etc) in the older linear interface could be accomplished very quickly with the tab key and a few key presses. The new UI, whilst looking nice and modern, has increased time taken to accomplish basic tasks. Its a minor issue, possibly specific to me, but worth noting.)

    edited March 15, 2019
  • IsopoIsopo Member Posts: 17

    @Isopo Our software currently isn't built for multi-currency in terms of transfers... Essentially, you would need to bookkeep this as unrealized gains/losses on foreign exchange.. however, those specific transactions would not be included in the reconciliation process which could get a bit messy.

    Hi @JamieD, thanks for the reply.

    Is this something you might be fixing in the near future? I think most of the small business market in Latin America will expect such feature. Today I'm using a much more basic –and less solid– platform like Akaunting just because they give you the change to transfer between accounts with different currencies. It is the one and only MAIN FEATURE that Wave doesn't have :(

  • JamieDJamieD Administrator Posts: 1,145 admin

    @janeDGC. To confirm -- are you referring to moving a transaction from your business account to your personal account? This feature is no longer possible in Wave, however, it does function the same in terms of bookkeeping (except, you are no longer double bookkeeping when you do this); this help centre article should provide more insight -- https://support.waveapps.com/hc/en-us/articles/208622836-Handling-business-expenses-with-a-personal-bank-account

    @NeilR I really appreciate your detailed response here, this is the kind of feedback we need to get a stronger sense of how we can move forward in terms of implementing new features that can benefit our users. More than happy to point out your specific response regarding this feature to our development team.

    @Isopo Still no immediate plans of improving/implementing a feature that would benefit our multi-currency users for transfers... I will still note the request for the feature and if there is ever any update, I will follow up.

  • SuziSuzi Member Posts: 3

    When making a payment on a credit card account (Visa) which I have used to purchase goods for sale, never does the amount of my payment match any one certain bill for goods purchased. How do I handle this?

  • ZoeCZoeC Administrator Posts: 388 admin

    Hey @Suzi, thanks for reaching out! If you have one credit card transaction that matched more than one bill payment, once the transaction is imported you can split it and categorize each split as Payment sent for a bill in Wave this will record each bill as paid. :smile:

  • SuziSuzi Member Posts: 3

    That is a possibility...however, rarely does the payment (say $500.00) match up evenly with several bills of smaller amounts (i,e,m 45.92+31.01....etc). The only way I can figure out how to make it work is to make a journal entry which can take money from cash and decrease the credit card liability account. It would be very handy if there were a "category" to choose under the liabilities. All of the solutions I have seen seem quite convoluted.

  • AlexLAlexL Administrator Posts: 1,941 admin

    Hi @Suzi . You don't want to be matching the transfer to all of your individual purchases. Your individual and smaller purchases should remain in the account as you categorize them to what they apply to, and as they raise the balance of your liability.

    The transfer itself should show the same amount in both ends of the transactions, considering it's $500 leaving your bank account, and then $500 entering your credit card account. If your bank accounts are connected to import transactions into Wave, you should be seeing both of these transactions appear after making these transfers in the real world. You can then tie them together with the article above in Wave.

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