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

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  • Rental96Rental96 Member Posts: 3

    So when I make a transfer between two bank accounts within the same bank why does Wave automatically create a credit in the same account which negates the payment and totally stuffs up the bank balance

  • Rental96Rental96 Member Posts: 3

    An update to my previous question credit card payments seem to go through fine and transfers to other banks but not transfers to accounts within the same bank

  • AlexLAlexL Administrator Posts: 2,060 admin

    Hi @Rental96 . Whether you're making a transfer between accounts within the same bank or within different banks, the process and result within Wave is the same. The only thing to call out here is that the Payment accounts must be different within the transaction.

    Is it possible that you've set up your bank as one single Chart of Accounts account in Wave, instead of setting each bank account up as its own account in the Chart of Accounts?

    Feel free to provide further context here or even post some screenshots of your workflow so we can get a better idea of what's going on.

  • NacNac Member Posts: 2
    Hi. I have just recently started using Wave. I am in Consulting business; I have 2 accounts in 1 bank; one for holding client funds in a Trust account, and the other Business Operating account. When I get monies from client in the Trust Account - the system identifies as a Deposit (Income) and then when the earned portion is transferred to Business Operating account - then again as a Deposit (Income). Is there any way to accurately account for these entries between Trust Account and Operating Account? What should be the Chart of Accounts for these and how would the double entry work for this?
    Is there a way to keep a tab of each client monies in the Trust Account - and the related expenses so as to reconcile each client monies at months end; to know whether there are sufficient funds for that particular client in the Trust to cover his expenses.
    Thank you in advance.
    edited May 23, 2019
  • NacNac Member Posts: 2
    Is there a way to keep a tab of each client monies in the Trust Account - and the related expenses so as to reconcile each client monies at months end; to know whether there are sufficient funds for that particular client in the Trust to cover his expenses.
  • AlexLAlexL Administrator Posts: 2,060 admin

    Hi @Nac . When you actually move the funds from one account to the other, you should also be seeing a withdrawal transaction from your Trust Account as there are funds actually leaving this account to go to another one. If this is the case, the Help Center article above will show you how to create transfers between these transactions. If you have any specific questions about the process, or something isn't working how it's supposed to, feel free to clarify.

    In regards to keeping track of which money is in your clients account, you will have to track this manually or outside of Wave as this isn't currently supported.

  • jhfelectricjhfelectric Member Posts: 5

    Hello,
    My situation is analog as those described below. My clients pay me in EUR and thus money is deposited in a EUR account. Now I need to transfer some of these EUR to my other currency account (MYR). How can I do that ?

  • JordanDJordanD Administrator, Moderator Posts: 515 admin

    @jhfelectric Great question! At the moment, if you are doing multicurrency transfers, the best way to do this would be to complete the transfer as usual and then do a gain or loss for the exchange rate by using the steps here: https://support.waveapps.com/hc/en-us/articles/208624186-Accounting-for-foreign-currency-transactions

  • TinaKTinaK Member Posts: 5

    I want a simple way to enter and pay my credit card bill (one time transaction). I enter all my bills as "receipts" as I go along and hit the proper expense account and offset the Credit Card Liability account. When I get my credit card statement, I want to create a "Bill" and offset the Credit Card Liability account. It appears I am not allowed to select a liability account as a line item when entering a bill. Why not? Or is there a way this can be done/turned on?

    This seems like it should be a simple task (I've done it in every other accounting software I've previously used/consulted on and I am a CPA); however, I cannot figure out a way to do this in Wave and the "Transfer" feature is very convoluted with details.

    Thanks!
    Tina

  • James_HudsonJames_Hudson Administrator Posts: 128 admin

    Hi @TinaK ,

    As far as I know, the change to limit which liability accounts were available in the Bills page was done to encourage correctness. We saw a number of instances of accounts like Accounts Payable being selected, as it was not immediately clear that saving a bill would credit accounts payable, and debit the account selected in the "Expense Category" section.

    It is still possible to add a liability account, provided it's added to the chart of accounts under the "Other Short-Term Liability" header. One possible workaround here would be to add a liability account that be temporarily used for the bill, and then use a journal transaction to clear the balance from this liability account to the credit card account.

    Outside of this, I would recommend giving the transfer feature another shot. Provided both sides of the transfer are present in the "Transactions" page, Wave will recognize the other side of the transfer, and present it as an option to link with the side that you are categorizing. I agree that it can take a few attempts to get your head around it, but once it clicks, it's a pretty seamless experience! Let me know if you have any questions about making it work for you!

  • TinaKTinaK Member Posts: 5

    Thanks James - setting it up as an "Other Short-Term Liability" account works perfectly :).

  • PatricePatrice Member Posts: 3

    I am confused here. I went to the bank and deposited cash from my business. I tried to create a journal entry to debit the bank account and credit cash, however, when I check my chart of accounts, the account balances have not changed. I am an accountant so I know that what I am doing is correct but Wave is not debiting and crediting my account balances. What is wrong?

  • ConnorMConnorM Member, Administrator Posts: 1,229 admin

    Hey @Patrice! That sounds tricky for sure, can you send screenshots of that journal transaction, and any other information that you feel might be relevant here? Would love to break this down with you to see how we can resolve this.

  • ClarkeyClarkey Member Posts: 16

    Can you add two more screen shots to show step 5 and 6. I don't understand what they mean?

  • EmmaPEmmaP Administrator Posts: 639 admin

    Hey @Clarkey! I have attached some images from my account to show step 5 & step 6 in more detail.
    To start with, you can see how I have two transactions here. One is an expense transaction for $100, and the other ins an income transaction for $100. When I click on the expense transaction which is in my RBC checking account I click to categorize it as a 'Transfer to':

    After I click this, Wave will try to detect any matching transactions in my account to connect as a 'Transfer'. In this case, Wave detected that I had a uncategorized matching transaction for $100 in my 'Visa credit card' account:

    I click on the 'Visa card' suggestion, and then both of my transactions are immediately categorized as 'Transfer to' & Transfer from':

    This process only works if both sides of the transaction are in Wave. If Wave can't find a matching transaction, it will create a 'transfer' transaction.

  • andypalandypal Member Posts: 1

    This new feature is frustrating because the both transfers appear in my transactions but Wave doesn't recognize it already exists and creates a 'transfer' transaction, so I have duplicates. When I try to delete the transaction that Wave created (because it already exists), it deletes the 'Transfer To' in the account. I can't merge the Wave-created transaction and the transaction that is already there. What am I supposed to do?

    I should add, both are in CAD. There are no currency issues here. Both are for the exact same amount. It's from an RBC-chequing account to a VISA card.

    edited December 8, 2019
  • BarsinBarsin Administrator Posts: 1,910 admin

    Hey @andypal

    When moving funds between two separate bank accounts not connected to the same bank is technically moving equity between accounts. This third transfer transaction is meant to show this movement of equity.

    I understand that this it may seem necessary since it only seems like money in your account and money out of another (two transactions) however, in Wave you need this third transfer to ensure that it connects these two accounts.

  • ctdookctdook Member Posts: 11

    I'm reconciling my transactions and found that I have a few credit card debits and credits that don't a matching transfer record for me. For example, I have a $55 credit card debit that was noted in my records on 4/4/2019, but there's no credit from my bank account say that there's a matching $55. What do I need to do? Do I need to manually add the bank credit transaction so that I can transfer the credit and essentially net both records out?

  • AlexLAlexL Administrator Posts: 2,060 admin

    Hey @ctdook . If you uncategorize your transfer transactions as "uncategorized income/expense" and recategorize them as transfers, they should automatically create the other end of the transaction for you so you don't have to do it yourself. Try it out and let me know if you have any trouble with it!

  • ctdookctdook Member Posts: 11

    Hi @AlexL - The issue is that these transactions haven't been categorized at all. Do I go ahead and manually create the matching "transfer" records?

  • ctdookctdook Member Posts: 11

    Hi @AlexL Do you have an answer to my follow-up question? Or someone from Waveapps can help me out?

  • ctdookctdook Member Posts: 11

    @JamieD Hi - do you have an answer for my issue?

  • AlexLAlexL Administrator Posts: 2,060 admin

    @ctdook If you already have both sides of the transfer, you can merge these into the other matching half of the transfer transaction. If you don't have both sides, you can categorize it as a transfer as well.

  • ctdookctdook Member Posts: 11

    @AlexL I dont' have both sides of a transfer. How do I create a transfer then if there's only one side?

  • ConnorMConnorM Member, Administrator Posts: 1,229 admin

    Hey @ctdook! You can actually just categorize that one side (that you DO have) of the transfer as that transfer, and it'll create the other side automatically. If it was an income transaction, you would categorize it as 'Transfer from Bank, Credit Card, or Loan'. If it was an expense transaction, you would categorize it as 'Transfer to Bank, Credit Card, or Loan'. In both cases, you would want to then select the account from which the funds either came from, or went to. I hope that helps.

  • JeremyMJeremyM Member Posts: 2

    @EmmaP Your screenshots are what I've been dealing with for 3 days now. There's one step you left out and its the primary issue I'm having.
    Here's what you said:
    "To start with, you can see how I have two transactions here. One is an expense transaction for $100, and the other ins an income transaction for $100. When I click on the expense transaction which is in my RBC checking account I click to categorize it as a 'Transfer to':"
    However, you skipped over what "Account" to select for the income transaction?

  • CarolColeLewisCarolColeLewis Member Posts: 1

    The corresponding transaction fails to show up more often than not.... And now I see it's important to make sure I've scrolled far enough down the transaction window to find the corresponding transaction....Problem solved.

    edited February 1, 2020
  • EmmaPEmmaP Administrator Posts: 639 admin

    Hey @JeremyM! The 'account' will be the bank or credit card account the transaction was recorded in as per your bank statement. In my example I'm showing a transfer from an RBC checking account to a credit card (visa). If you do not have both accounts added to your Wave account for the transfer you are trying to show, you can add it under you Chart of Accounts page!

  • Olga_BergOlga_Berg Member Posts: 1

    Hi! How can you do this on a group of transactions? When I try to do that, the transfer to account option does not appear. Is that by design?

  • icullumbericullumber Member Posts: 1

    Transfers between accounts do not always post on the same day. Often times, such as when I make a credit card payment from my checking account, one transaction posts a few days before the other. In this instance it is normally the checking account that posts before the credit card. When these transactions post to the first account I mark them as transfers and a Created Transfer line is added to the register. So far, so good. However, when the transaction finally posts to the second account I now have a duplicate in the register. I have the Created Transfer and the post that is automatically downloaded from my account. As near as I can tell, there is no way to merge these two transactions in the register which are duplicates. The only solution I have found is to delete the Created Transfer and then match the initial post and the subsequent post using the method above. Am I missing something here? Or is it just a bad design?

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