Different Currencies between bank transactions and actual invoice
Lerene
Member Posts: 2
Hi. I am from South Africa. I had to make out invoices in USD and got paid for it. My problem is that when I try to record the payment I am doing it from the Transactions Function on Wave - to Create Invoice Payment. But it doesn't allow me because of the invoice that is still in USD currency.
So I tried to do it from the Invoice side to Record a Payment - but now it shows double payments. I still have the Transaction that I cannot allocate to the invoice. And on the Journal there is now double income for only the one invoice.
I don't know how to fix this.
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Hi, @Lerene.
Are both your business and your payment account in ZAR? If that's the case, you won't be able to record a payment from the transactions page unless that account and transaction both match the currency of the invoice (USD here).
Did your client pay you in USD or in ZAR? You'll have to delete the transaction imported from your bank in either case, but there might be a bit more work to do if we have to account for exchange rates.
Hi Alexia. Yes, my client paid in USD. Yes, my business and my payment account are ZAR.
My client insisted that the invoice had to be in USD - it is their company policy. So the invoice was something around USD2000 and in my bank, it reflected something like ZAR24 000. So that is a huge difference.
It is a little bit of a frustration because I would prefer not to delete the transaction because at the end of the month or year I use the Wave Accounting results to compare that with my physical bank statements to give to my accountant (I am not so good with the journal entries - I don't understand everything so well).
Another strange thing - in the Account Transactions report under SALES the particular invoice appear 2 times. Once with the USD currency of USD2,609.51 and again with ZAR24,445.18 - but both as if it is ZAR. That total up to 27054.69 - which is not true. It should only be ZAR24,445.18
I cannot find anything wrong with the invoice.
Here's what's happening, @Lerene.
When you recorded a payment on your invoice by hand, Wave calculated the exchange rate based on the mid-market exchange rate on the date of the transaction from Xe.com. That might not match the transaction from your bank, since they might be using a different exchange rate, or taking into account a fee for that exchange.
This is what you'll have to do:
This will make it so the final numbers between your bank account and Wave will match up.
As for your Account Transactions page, can you share a screenshot? It'll give me a better idea of the issue at hand.
I am in the same situation, also from South Africa. Unable to record invoice payments due to the amount never matching exactly. Tremendous pain in the butt. Mixed ZAR-USD payments can't always be recorded, resulting in a list of 'overdue' invoices that are actually paid !
Hi @pravda23 thank you for taking the time to share your experience. For the moment, managing invoices in multiple currencies in this way is not straightforward. Learning more about your experience is helpful and very much appreciated. I can suggest another workaround:
Let's say you have a Canadian business and the Invoice is for $2000 USD. You received this payment to your CAD Checking account, and you received the deposit converted to CAD.
You could note down the details of the transaction (the exchange rate at which the deposit was converted), and manually add a payment to your invoice. When adding a payment to your invoice, enter the USD amount and adjust the exchange rate to reflect what you received from the bank. This should resolve the issue with invoices appearing to be overdue when they are in fact paid.
The issue then is that you'd need to remove the duplicate transaction for the deposit (so as to not duplicate your income), which would result in the record not reflecting that of your bank. I'd recommend speaking with your accountant to see which method they would suggest that you use.
Thanks Charlotte