Line of Credit Reconciliation

Farmer_Frank

I have tried to reconcile my Line of Credit account but it will not balance. I have gone through and made sure all transactions for the account form the bank are entered. The issue is with the interest expense for the line of credit not being categorized correctly I am assuming as the amount Wave claims is in the account adds up to the interest paid on the account. How can I fix that?

JulianP

Hey @Farmer_Frank !

Do you mind clarifying how you have been recording your line of credit and if you have been splitting your transactions to account for interest separately? If so, and your transactions had the correct account selected, you should be able to reconcile your account. For more information, feel free to check out our Help Center article on how to account for loans and interest in Wave here.

Also, feel free to attach screenshots from within your account if necessary. If you do so, please redact any sensitive information.

Farmer_Frank

here are examples of a payment to the line of credit and a interest payment on the same line of credit

Farmer_Frank

No matter what I have changed the account will not reconcile in Wave. All transactions are identical to my bank statement for that account so something must be wrong with the way Wave is handling the transactions.

KristenV

Hi @Farmer_Frank

Thanks for sending that information over! From your screenshots, it looks like you are accounting for your loan with journal transactions. When recording loan payments through a journal transaction, you will need to add an additional line to account for the interest expense specifically. This Help Centre article can provide more information on this: How to account for a loan with journal transactions

If you're still having trouble with this, please feel free to reach back out!