Error when paying land contract with owners investment / drawings?

ohio_bryce

Hey all!

I've been tracking my land contract payments as a monthly expense. I'm trying to change it to post the principal to the land contract liability and record the interest as an expense.

• When I use "cash on hand" as my account everything is fine.
• When I use owner investment/drawings I get an error. (see image)

Any ideas?

Thanks!

Gabriel_Krozkin

Hi @ohio_bryce,

I believe the error could be that the "owner investment/drawings" account is not a bank account, and thus Wave will not allow you to utilize a "withdrawal" from this account.

Workaround: --> Create a new "Bank account" called "Owners Cash" (or whatever you want to call it) and utilize this account for payments/deposits.
Then, once a month (or once a year), with a journal entry "move" the balance of this new account to "owner investment/drawings" to properly reflect the balance.

Thanks.

ohio_bryce

@Gabriel_Krozkin . Thanks for the follow up!

Rather than setting up an owner's bank account, I use the owner's investment/drawings account to track my money in/out. For example, I used my personal credit card to purchase $100 in office supplies. I used owner's investment/drawings as the account and office supplies as the category.

So far, it's done a good job or tracking my investments. Wave won't let me do it on this transaction for some reason....

Is the owners bank account approach a better match for Wave?

Gabriel_Krozkin

Hi @ohio_bryce You welcome.

For this situations, it is strange, as I tried on my own Wave and it let me.
The workaround suggested should work. Again, it is a little more work, but will fix your problem.

Workaround: --> Create a new "Bank account" called "Owners Cash" (or whatever you want to call it, will be an "owner's investment/drawing bank account") and utilize this account for payments/deposits.
Then, once a month (or once a year), with a journal entry "move" the balance of this new account to "owner investment/drawings" to properly reflect the balance of your investment (which is the sum of the 2 accounts).