Adjustment entries in your upgraded account

SystemSystem Posts: 282 admin

imageAdjustment entries in your upgraded account

Like all the automatic bookkeeping Wave does for you, when we updated your account to the new accounting platform we automatically accounted for any changes between the old system and the new syste...

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edited November 28, 2019 in Help Center Discussion

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  • MartaPMartaP Member Posts: 5

    Dear Wave Team!
    I feel that I have to give you the feedback on your upgraded system. My foreign bank account does not reconcile because there were many system adjustment posting. Suddenly I have more money in the bank (in foreign currency) then I actually do have. So now I have to go back 7 years backwards and reconcile item by item hundreds of bank postings to understand and reverse your system posting. What I noticed so far is that some transactions were posted in the wrong period , some amounts are incorrect, some are missing. Luckily I am a qualified accountant with many years of experience so I hope I will manage it but it will take few days or weeks to do it! However I am wondering how users who are not accountants can manage to reconcile their transactions. So far I was a big fun of WAVE. I must say that what happened with the upgrade is very frustrating. There are of course some positive changes but unfortunately WAVE is no longer a reliable software.

    edited November 28, 2019
  • EmmaPEmmaP Administrator Posts: 285 admin

    Hi @MartaP! I appreciate you taking the time to provide your feedback here. There have been a lot of changes with the upgrade, including the adjustment entries that have been created. Reconciling is the best way to find where the discrepancies are, but we understand that this is time consuming.
    The old version of Wave Accounting only considered verified transactions for reconciliation, however, all transactions were included on reports, this lead to instances where users considered an account reconciled, but reports were wrong. The new version counts all transactions in reconciliation to ensure that the transactions that are on reports are reconciled with your bank, helping you keep your reports accurate.

    Another option is, if your account was already reconciled, you should be able to enter statement ending balances into Wave and get all months into a reconciled state. If you want to start with just this fiscal year, enter the ending balance of the account you're reconciling at the end of the fiscal year. On the Reconciliation page, Wave will prompt you to enter the balance on your last fiscal year-end if you're getting started. I understand that this is a frustrating consequence of the accounting update, and I appreciate your feedback on this.

  • FaizFaiz Member Posts: 1
    Hello

    I am waves user for years but all of sudden after upgrade, my bank balance have changed which were already reconciled and I paid taxes, year end etc based on these reports and now everything suddenly changed.
    I have thousands of transactions and I am not an accountant so it might take me months to reconsile and it seems impossible for me.

    If waves can keep my data till last finincial year unchanged, that might work but now seriously think to seek alternative options.
  • AlexLAlexL Administrator Posts: 1,313 admin

    Hey @Faiz . First off, thanks for reaching out about this. I understand your frustration with the change and how this has affected your accounts.

    So I can further explain to you what has changed, a limitation of the old version was that while we used your bank balance to compare against verified transactions, the system didn't save the reconciliation itself. We only saved statement balances where you entered them directly, for example, when reconciling an account for which you did not have a bank connected.

    If your account was already reconciled, you should be able to enter statement ending balances into Wave and get all months into a reconciled state.

    If you want to start with just this fiscal year, enter the ending balance of the account you're reconciling at the end of the fiscal year. If you start with the wizard on Reconciliation page, Wave will prompt you to enter the balance on your last fiscal year-end if you're getting started, and the first statement balance you enter doesn't match the Wave balance.

    If you are still seeing your accounts as unreconciled for the months where you’ve entered balances, there are a few things to check. To get set up, I'd recommend heading to your online banking to pull up your bank statements for the periods that need attention and downloading them or pulling them up on another screen, so you're ready to go.

    The old version of Wave Accounting only considered verified transactions for reconciliation, however, all transactions were included on reports, which to instances where users considered an account reconciled, but reports were wrong. The new version counts all transactions in reconciliation to ensure that the transactions that are on reports are reconciled with your bank, helping you keep your reports accurate. Starting reconciliation from the earliest available month is the best way to determine where these errant transactions are, and correct them if need be.

    edited December 9, 2019
  • JaneOJYJaneOJY Member Posts: 2

    Hi, I am trying to get used to Wave's new system recently. One thing I cannot wrap my head around is the ending balance of one of my account in foreign currency (USD). The ending balance of USD0 shows SGD17.04 (SGD being my home currency). I am expecting USD0 to convert to SGD0. Hope someone can help or show me a better place to post this question, thanks!

  • ConnorMConnorM Member, Administrator Posts: 389 admin

    Hey @JaneOJY! Thanks for reaching out here. Can you send a screenshot of what that looks like on your end? Are you looking at that ending balance from your reports? If so, which report?

  • JaneOJYJaneOJY Member Posts: 2

    I thought I have already replied this but here it is again. Thanks @ConnorM.
    https://ibb.co/bL1wYTG
    This is taken from Reports>Balance Sheet's Details view, after click on the specific account.
    So apparently Wave took the totals of debit and credit to get the ending balance. But what am I supposed to do with this SGD17.04 which is supposed to be zero since it is USD0?
    If I journal it off to gain/loss due to foreign exchange, I will end up with negative USD balance which does not seem right too. Any advice is greatly appreciated.

  • rdwcrdwc Member Posts: 2

    After the Wave update, there are major differences in acct balances which have been reconciled but they're still there. I have read through multiple Wave help posts explaining why this is, but it's still not clear to me what is the best way to handle it. For example (using basic numbers): Let's say I have Checking Account X, which was fully reconciled for 2018-12-31. The statement balance from my bank on 2018-12-31 is $20,000. The Wave balance is $50,000 for a difference of $30,000. The Wave update's automatic adjustment entry for 2018-12-31 is $29,000 which is almost exactly the same amount of the difference between the actual statement balance vs. the Wave balance. So now I have two choices (I think--let me know if there are other options):

    Option 1: Do I follow the instructions here ( https://support.waveapps.com/hc/en-us/articles/360032203492-Adding-a-Year-End-Adjustment-to-Start-Reconciliation ) to make a $30,000 manual year-end adjustment for each account and year affected? That will ensure the statement balance is "correct" (compared to the actual bank statement), but won't it basically undo Wave's automatic journal entry that was supposed to "fix" some issues with past bookkeeping?

    Option 2: I could do nothing since I have confirmed that everything is reconciled...but then my actual vs. Wave balances will be off by $30,000 in this account (and this is just one of several accounts--others have variances, too) forever ?

    This is an issue for multiple accounts and years, but 2018 is the worst one so I want to get your answer before I spend the time (at least several hours) to go through all of them. This really caught me off guard, I did not budget so much time for this in the new year. Thanks in advance for the reply.

  • alevglobal17alevglobal17 Member Posts: 1

    Hi!
    We are an avid user since 2015 from Malaysia. I have been loving the system and have even used the Waveapps report to file for taxes here until this Migration Entry came about. It has certainly messed with our balance sheet report as the final balance does not reflect our actual bank account balance.
    Kindly advise. Thank you.

  • BarsinABarsinA Administrator Posts: 633 admin

    Hey there @rdwc

    If you're finding that the adjustment entry is messing with your bookkeeping you can always undo the entry by simply adding a new journal entry and mirroring the debits and credits of what the adjustment entry if you so wish! Knowing that you've reconciled your account in the previous version, we wrote the "adjustment journal entry" article to basically say start over for the year with a year-end adjustment entry. Option 2 with an adjustment entry to close out your previously reconciled year might be the best bet.

    @alevglobal17

    The adjustment entries that you see as a result of your account update ensure that the totals of your new reports are exactly the same as they were in the old version of Wave Accounting. There is no action required on your part with respect to these entries.

    We've written a detailed explanation about these adjustments in our Help Center that goes over why there were some cases where adjustments needed to be made when updating your account to the new version of Wave Accounting. You can read that here.

    If there is anything that you wish to change about the adjustments, you'll want to do so by using a reversing journal entry. You can add a journal entry by using the More drop-down menu on the Transactions page.

  • AGJA_2020AGJA_2020 Member Posts: 1

    I have duplicate transactions from by one linked bank account. I have a very simple set up, one bank account and probably less than 100 transactions per month. I went to reconcile the last 2 months and I noticed the linked bank is no longer on the dashboard screen. Is that a new change? Then I went to the linked bank account tab and now I have duplicate transactions for what looks like most or all of the year. That means my gross income and expenses show as double my actual. How do I fix this?

  • ConnorMConnorM Member, Administrator Posts: 389 admin

    Hey @AGJA_2020! Unfortunately, the bank showing on the dashboard is something that has been temporarily deprecated. Our teams are looking to restore that functionality ASAP.

    With regards to the duplicated transactions, unfortunately this was a known issue as far as the bank migration goes. I'm very sorry about this, but you will need to delete those duplicated transactions manually on your end.

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