Transfer from bank to cash on hand

AardvarksAardvarks Member Posts: 3

Hi
My business account is connected to Wave and transactions are showing automatically. So far so good. :-)
I withdrew an amount today as cash, as I had to pay a bill in cash.
The balance on my bank account has been updated correctly, but the withdrawal isn't showing up in the transactions. Do I have to add it manually? Seems odd as my account is connected.
If so, how do I show a transfer from my bank account to cash?
I read the article that mentioned selecting two transactions and making them a transfer, but as the cash withdrawal is not showing up, I can't do that.
Any help gratefully received!
Thanks
Martin

Comments

  • SamdSamd Administrator Posts: 358 admin

    Hey @Aardvarks, this is an odd error we see sometimes in which our banking data provider does not read ATM transactions properly. In this case, I'd recommend creating the withdrawal manually. From there you could directly assign the withdrawal as an expense to a bill in Wave, or just assign the category that would be define the bill (Rent for example). Nothing more would need to be done.

    Alternatively, you could create a journal transaction from your business account into your Cash on Hand account. Then, you'd do much the same as above, by which I mean create an expense transaction, this time out of Cash on Hand, and categorize it within Wave.

    Hope this helps!

  • AardvarksAardvarks Member Posts: 3

    Hi @Samd
    Okay, thanks for your help. I thought it odd that the transaction wasn't picked up.
    Cheers
    Martin

  • springdalerocksspringdalerocks Member Posts: 12

    @samD, what is the distinction between using a "journal transaction" and using a transfer? I am puzzling over how to handle some cash payments that were not done with a debit card. The checking account shows e.g. a $100 withdrawal, and from that I used the money to make various cash expenditures. I created a "cash withdrawals and cash expenses" account and changed the bank withdrawals to transfers to this account. HOWEVER, I tried to split the withdrawal transactions within the "$100 withdrawal" type bank transactions. This didn't work so well because often I spent more or less than the one specific withdrawal.

    I think I need to probably delete all the categorized withdrawals, upload the withdrawals only back into the bank statement , and then what? Transfer or journal transaction into the "cash withdrawals and cash expenses" account, and then create expenses within that account for each cash receipt?

    I would be grateful to have help understanding how to manage this (in 2019, new type of debit card and the problem goes away ; )

  • springdalerocksspringdalerocks Member Posts: 12

    update -- paragraph 2 is pretty irrelevant now -- it seems that the split transactions largely may have disappeared when I tried to clear the pending transfers/match them.So I took a spreadsheet I had made of the cash receipts that pertained to the withdrawals and uploaded it to the "cash withdrawals and purchases" account as negative numbers, so that I can balance the cash against receipts for each month. (Splitting transactions was leaving a few dollars in each cash withdrawal, so now each withdrawal does not need to be matched dollar for dollar). So the transactions need to be re-split and I would like to know if I must add these purchases to inventory in order to be able to invoice them (time and materials style)? Thanks -- I have not tried to do an invoice yet.

  • ErikErik Administrator Posts: 187 admin

    Hi @springdalerocks

    Transfers and journal transactions aim to do the same thing: represent movement of value from one account to another. However, transfers are limited to accounts that can actually hold money (such as a credit card or checking account). Journal transactions can reach any account that holds value but not necessarily actual money (e.g. income and expense categories).

    Traditionally, to record cash withdrawals in Wave, you can indicate a transfer from your bank account to the Cash on Hand account. This account should be a default account already present in your Wave account and represents the cash that you hold onto outside of a bank account. Then, when you make a cash purchase, you would want to create an expense transaction under the Cash on Hand account.

    As for keeping track of your inventory purchases, you would be able to follow our guide here: https://bit.ly/Wave-Fearless-Accounting

    You can find the relevant information on page 74!

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