New Accounting Experience - Adjustment Entries

JustinAJustinA Administrator Posts: 36 admin

Hi everyone!

I wanted to provide a bit more detail about the adjustment entries that you may have noticed since we’ve updated your Wave account to the upgraded accounting experience.

We created these entries to account for discrepancies between how we calculated things in the old accounting experience compared to the new upgrade. These include things like:

  • Changes to the way invoice and bill totals are calculated. This is not an issue for most invoices and bills, but in certain situations can result in changes of a penny or two, particularly when there are many line items on the invoice.
  • For users who do business in multiple currencies, we’ve enhanced how we calculate gain and loss for invoice and bill payments, as well as transfers. We’ve added adjustment entries to ensure that your books match the old system up until the time your account was updated. Going forward, gain and loss on foreign currency will use our new and improved calculations to ensure your gain and loss reporting is more accurate than ever.

We made these adjusting entries to ensure your reports and balances stay the same and indicate the information you entered in your Wave account, while reflecting accounting best practices. As always, we welcome any feedback you'd like to offer. If you have any questions, comments, or concerns, please feel free to let us know below.

Comments

  • Wavemike1944Wavemike1944 Member Posts: 7

    Can you please bring back the second Button the credit button o I can keep crediting invoice payments as i did before so beautiful easy, now i dont know how to credit anymore Mike Werner West Australia

  • EmotionalHealthLtdEmotionalHealthLtd Member Posts: 9

    I'm really confused. The way invoice payments are accounted for seems to have changed as well as the interface. All this has changed with no warning, no email, no help text, no explanation. Wave is free and Wave is wonderful but an email announcing the changes would have been helpful.

    It seems that now an invoice transaction is shown as Net when previously there were two transactions for GROSS and FEE

    The invoice transactions are shown as Payments by Wave, I am in Europe. Are we still on STRIPE?

  • gerspogerspo Member Posts: 1

    Hi,
    It's too early for me to see the benefits of the changed calculation of gain/loss on currencies.
    However, unfortunately since the transition I've got several problems with regards to the different currency accounts.

    To mention some:

    • One cannot choose the currency of the entries anymore (automatically imported and manually added). It happened several times to me that bank statements were not imported in the correct currency. I was able to fix this manually but now this is not possible anymore.

    • I'm working with CAD currency as the main currency. USD entries prior to the transition have been changed to CAD on the transaction page i.e. formerly 100 USD now show as 133 CAD. New transaction on the account do however show the USD amount but no idea whether they are actually in USD or CAD since I can only see the $ sign.

    • I tried to register an invoice payment by clicking on category/payment received for an invoice - but only the CAD invoices seem to show up ..... I tried to get around by registering an invoice payment via Sales/Invoices/Action/Record a payment. When I enter Bank payment and USD payment account the amount transforms into CAD on the Transaction page -- which makes me doubt once again about the currency in which entries of my USD account actually show up.

    Could you please explain in which currency entries should actually show up on the transaction page? As a suggestion, it would be great if you could switch the currency signs for the 3 letter currency codes USD, CAD, EUR etc to avoid confusion + allow for changing currencies again.

    Thanks a lot

  • bonnydbonnyd Member Posts: 5

    @EmotionalHealthLtd said:
    I'm really confused. The way invoice payments are accounted for seems to have changed as well as the interface. All this has changed with no warning, no email, no help text, no explanation. Wave is free and Wave is wonderful but an email announcing the changes would have been helpful.

    It seems that now an invoice transaction is shown as Net when previously there were two transactions for GROSS and FEE

    The invoice transactions are shown as Payments by Wave, I am in Europe. Are we still on STRIPE?

    have you noticed you cannot transfer out of payments made by wave either. you cannot send this to your main account.

  • shaunooooshaunoooo Member Posts: 2

    @gerspo said:
    Hi,
    It's too early for me to see the benefits of the changed calculation of gain/loss on currencies.
    However, unfortunately since the transition I've got several problems with regards to the different currency accounts.

    To mention some:

    • One cannot choose the currency of the entries anymore (automatically imported and manually added). It happened several times to me that bank statements were not imported in the correct currency. I was able to fix this manually but now this is not possible anymore.

    • I'm working with CAD currency as the main currency. USD entries prior to the transition have been changed to CAD on the transaction page i.e. formerly 100 USD now show as 133 CAD. New transaction on the account do however show the USD amount but no idea whether they are actually in USD or CAD since I can only see the $ sign.

    • I tried to register an invoice payment by clicking on category/payment received for an invoice - but only the CAD invoices seem to show up ..... I tried to get around by registering an invoice payment via Sales/Invoices/Action/Record a payment. When I enter Bank payment and USD payment account the amount transforms into CAD on the Transaction page -- which makes me doubt once again about the currency in which entries of my USD account actually show up.

    Could you please explain in which currency entries should actually show up on the transaction page? As a suggestion, it would be great if you could switch the currency signs for the 3 letter currency codes USD, CAD, EUR etc to avoid confusion + allow for changing currencies again.

    Thanks a lot

    I have having the same issue. We have expenses in CAD and USD, Previously we could pick the currency. Now I enter in the currency and it is showing the numbers in USD (no USD mentioned) but it looks like previous entries were converted to USD, so basically it is a complete mess.

  • JustinAJustinA Administrator Posts: 36 admin

    @EmotionalHealthLtd Sorry for the confusion this has caused, we should have done a better job of announcing these changes. While the invoice and the processing fee are now book kept as one transaction, your reporting has not changed. And to confirm, you are still on Stripe as a European user.

    @gerspo and @shaunoooo thank you for the feedback on multi-currency. I can appreciate the frustration that the ambiguous currency symbols, going to take that back to the team and see what we can do to make this better in the near future.

    In the new system, transactions are always imported in the account currency, we will be introducing functionality to allow you to overwrite the exchange rate such that it represents the amount deposited/withdrawn in foreign currency accurately, while also correctly reflecting the change in the account currency.

    At the moment, multi-currency invoices and bills can only be marked paid from the relevant invoice or bill, which will then create the appropriate accounting transaction. We're working on introducing the ability to add multicurrency invoice and bill payments directly from a transaction.

    Thank you very much for the feedback, appreciate it. We'll be working to improve the multi-currency experience in the coming months.

  • Xanadu_MuseXanadu_Muse Member Posts: 4

    Meanwhile, where did the ability to send a receipt for invoice go? It used to be in the Transactions/accounting feature. I could see a payment, link to an invoice, and send a receipt to the customer. Now I have to link to invoice, mark as reviewed/saved, exit. Go across to invoices, find the one(s) that I just marked as paid, and send an invoice. More clicks, more confusion, less happy.

  • Ryan_WRyan_W Administrator Posts: 462 admin

    Thanks for the feedback about that workflow @Xanadu_Muse!

  • KojuKoju Member Posts: 1

    Hello,

    As a bookkeeper, seeing the invoice and the processing fee as separate was very useful, as Merchant Fees are deductible for my clients. Now, there's no way to reliably make these adjustments due to the new reporting.

    Why was this change made? Is there any way to change it back?

  • AlexLAlexL Administrator Posts: 1,123 admin

    Hi @Koju . Rest assured, this is still visible in Wave even though we've changed where this is located. If you click into the transaction itself in your Transactions page, you'll see that this is now all housed under the same transaction, with the Merchant Fees split out from the rest of the invoice.

  • naylagnaylag Member Posts: 8

    Hi all. With the new system, while my bank reconciliation was done long ago, a new entry automatically generated unables me to reconcile again. It's a Migration Adjustment Entry, which seems to be related to loss on foreign exchange, but which shows a positive balance on my local currency account, and a negative one on my foreign currency account... I don't know where it's coming from and how to fix it. Any advice? !

  • EmmaPEmmaP Administrator Posts: 270 admin

    @naylag thanks for reaching out about this! I have merged your post in a thread with other users who have experience adjustment entries so you can have a read here. I'm also going to DM you to gather some details about this :)

  • WorkoutTempsWorkoutTemps Member Posts: 1

    How do I split the payments now? On the old system it let me split payments. There are times that 1 client pays 1 amount for various invoices. I can no longer do this with your new accounting system. Am I missing something?

  • ConnorMConnorM Member, Administrator Posts: 193 admin

    Hey @WorkoutTemps! We've actually got a solid Help Center article here on how to do this! Let me know if you're seeing anything different, would love to give you a hand.

  • SharmaineSharmaine Member Posts: 1

    Would it be possible to request to remove the migration entries? It doesn't actually help me beyond making all my accounts out of balance. I don't use the reporting from Wave anyway precisely because of these foreign exchange gains/loss weirdness.

    edited November 4, 2019
  • AlexLAlexL Administrator Posts: 1,123 admin

    Hey @Sharmaine . I'm afraid these migration entries are non-removable, due to the fact that they do account for changes and skips in your account. Check out the following thread, although Justin's post is similar to this one, the following thread does provide even more insight on what the entries account for.

    https://community.waveapps.com/discussion/3845/new-accounting-experience-adjustment-entries-with-skipped-transactions

Sign In or Register to comment.