Foreign Currency Transactions in Wave

SystemSystem Posts: 359 admin

imageForeign Currency Transactions in Wave

Sometimes, you'll need to spend money or deposit a payment in another currency. This might sound complicated, but Wave Accounting makes it easy to stay on top of this bookkeeping. Before we dive in...

Read the full story here


edited December 10, 2019 in Help Center Discussion

Comments

  • SBenoitSBenoit Member Posts: 28 ✭✭

    I think Wave should clarify what is actually going on in the background to show the balance of a foreign currency account on the balance sheet, as it isn't quite as simple as the statement: "On the balance sheet, Wave uses the xe.com rate to approximate the value of this asset in my Business Currency for reports.". If this were true, you wouldn't have situations where the balance is zero in the foreign currency, but non-zero in the local currency, which I run into all the time. I believe in the back-end Wave holds a running balance in both local and foreign currencies and this allows the expenses/income to be recorded in the local currency on the day it happened, but the effect is that the balances drift apart over time. I fully understand why it's doing it this way, but in articles like this it should be specified, not oversimplified.

  • AlexLAlexL Administrator Posts: 1,794 admin

    Hi @SBenoit . Totally appreciate your feedback on this, and I can understand exactly where you're coming from. We are currently working on providing more features and corresponding education around foreign exchange in Wave, so I'd be more than happy to pass your thoughts along to our Accounting team.

    Thanks again for the feedback.

    edited December 26, 2019
  • cwidcwid Member Posts: 2

    Having some issues creating a journal entry in a foreign currency. I have a USD bank account, and it is set up in Wave in USD. However, when I try to do a journal entry and post to this account, the entries are in CAD funds, and I cannot see anywhere to fix this or select USD as the transaction currency for the JE.
    For example, we need to post a $0.07 adjusting journal entry to our US account (to clean up the account). We post it and save it. Wave converts it to $0.05 (USD?) in the account, so the account is still out $0.02 USD.

  • AlexLAlexL Administrator Posts: 1,794 admin

    Hi @cwid . I see that this is being dealt with by our support team over ticket, so I'll let you get the answer that you need there.

  • DwenianDwenian Member Posts: 3

    How do I add an foreign currency transaction? Nothing as complicated as the example given. My accounts are in CAD: I travel to the US & make a $10 USD purchase which I pay for in USD. I want to add the transaction as USD $10 (which I used to be able to do) but now I only seem to be able to add the amount but not say what it's an amount of (CAD, USD, GBP etc).
    Am I now supposed to manually work out the exchange rate myself to add the Transaction in CAD?

    edited June 8, 2020
  • CalliePCallieP Administrator Posts: 360 admin

    Hi again @Dwenian ! As mentioned in another comment to you, the currency for regular income/expense transactions is determined by the currency of the Account field. If you pay this USD amount form a CAD account, then the transaction will appear as CAD, and you can use your bank statement to identify the exchange rate if need be. This article explains all of this in more depth, including your exact situation: https://support.waveapps.com/hc/en-us/articles/360035538791

  • ChuanhuaChuanhua Member Posts: 1

    @SBenoit said:
    I think Wave should clarify what is actually going on in the background to show the balance of a foreign currency account on the balance sheet, as it isn't quite as simple as the statement: "On the balance sheet, Wave uses the xe.com rate to approximate the value of this asset in my Business Currency for reports.". If this were true, you wouldn't have situations where the balance is zero in the foreign currency, but non-zero in the local currency, which I run into all the time. I believe in the back-end Wave holds a running balance in both local and foreign currencies and this allows the expenses/income to be recorded in the local currency on the day it happened, but the effect is that the balances drift apart over time. I fully understand why it's doing it this way, but in articles like this it should be specified, not oversimplified.

    Hi Wave Team , is there any fix about this?
    I have account in foreign currency after i zerolized it, there shouldn't be any amount in my local currency left.

  • brian1990brian1990 Member Posts: 2

    I have the same issue. I have a USD Bank Account which has 0 balance but in balance sheet it's saying -€926.64. This may cause me to do an error while doing the company's Audit. Can the issue be resolved ? Do I need to contact customer support ?

  • CalliePCallieP Administrator Posts: 360 admin

    Hey @Chuanhua and @brian1990 , thanks for reaching out. Our Accounting product team is currently working on building out greater control from your end with regard to foreign currencies, which you can click here to learn more about - so while this is not yet available, it is on the way! Thanks for your patience while we build this out.

  • jamaljamal Member Posts: 1

    Hello Callie

    i am doing my auditing in USD and i have the same issue .
    MY BANK ACCOUNT IS IN HKD ( HONG KONG DOLLARS) , but on the balance sheet the curreny conversion is not right ,

    i have HKD2546.12 which is around 327 usd , but on balance sheet i have 1523 usd .

    any way to solve it ? i appreciate your help

  • AlexLAlexL Administrator Posts: 1,794 admin

    Hey @jamal , as Callie mentioned, our Accounting team is working on providing better foreign exchange solutions for the future. In the meantime, you can create a Journal Transaction which changes the amount to the correct adjustment so that it matches how much should be showing in Wave.

Sign In or Register to comment.