How to allocate funds to different assets within 1 account

Lorenzo

Wondering if it is possible to do this....
So say I have income for $1000 in Account A.
Now I want to transfer this amount to Account B.

However, for whatever reason, I want to allocate $600 of this to Category 1, and $400 to Category 2.

How would I go about this??
I'm stuck because if I transfer the amounts, they will be categorized as 'Transfer From' categories.

Ellie_Writes_Things

Yeah, @Lorenzo, you can just create a journal entry. Click on the More button next to "Add income" and "Add expense". Journal Transaction is an option there. It does exactly what you need it to.

Lorenzo

Hm, I see an option for Journal Transactions in my business sections, but not the personal. Do you happen to know if the new version of wave that is being rolled out will have an options to journal transactions for personal accounts as well?

Ellie_Writes_Things

I have no clue, @Lorenzo . I think I've seen @Alexia post about it somewhere. Maybe we can summon her over to help.

Alexia

Hi, @Lorenzo and @Ellie_Writes_Things.

Our plan is to be done with the migration over to the new version of Wave within the next 3 to 6 months. If you want a preview, all new accounts use the new version. You can create a new account to get a better idea of the new features.

Lorenzo

Ok Thanks @Alexia and @Ellie_Writes_Things ,

I'm still a little confused on how to make this do what I want to do.
How would the process work? I'll be experimenting after writing this but any confirmed answered are always appreciated.

So I make a transfer to a savings account and the transactions come in from the 2 accounts....Now, should I no longer create a transfer between these two transactions? or should i still create a transfer between these two transactions (which wave may also do by default) and also create a journal entry? And do the accounts assigned to the journal entries then need to be Categories 1 & 2 (as referenced in the first post)? Or do they need to be the actual payment accounts?

Or do they need to be a combination? For example, when making a journal entry, am I creating one line item coming from Account 1, and then 2 more lines going to Categories 1 & 2? or possibly the same idea, but instead starting from Account 2 to Categories 1 & 2?

I ask all this because I see that the category of the journal transactions defaults to some name like 'journal entry' (I forget what it was), so I'm missing the idea of how to keep track of how much was allocated to category 1 and how much to category 2, while at the same time keeping everything balanced.

Also..... Does that mean that Category 1 & 2 need to be set up in the Chart of accounts as an Asset?
For now I'm think it's an asset because I would have categorized it as income when it first came into my accounts. So I created these categories as Asset -> Current Asset -> Other Current Asset -> Other Current Asset.

Alexia

Hi, @Lorenzo.

I apologize, I misunderstood your original question.

Can you give me a bit more details about what you're trying to represent in the real world? The issue here is that "Transfer" becomes the category when you create a transfer in Wave, so you couldn't categorize parts of a transfer to something else exactly.

With that said, if you give me more details as to what you're trying to model in the real world, I'm sure I'll be able to make sense of the situation.

Lorenzo

Sure @Alexia, so basically I have some accounts in which I may deposit or withdraw some cash, but I may want that cash allocated to different categories, so that I can keep track of different saving goals.

For example, I am a US citizen living in the UK, with a Sole Proprietorship based in the US.

Now, with each payment I get, I'm putting money away for taxes, but I only have one account for that. So I may say, $x is for UK taxes, $y is for US Federal and State taxes, and $z is for US Self Employment taxes.

What I'd like to do is to be able to transfer money into the savings account, and then I can either split the transactions, or whatever, so that I can categorize the allocated amounts to their respective allocations.

Basically it is a way to deposit (or withdraw) funds and keep track of what is allocated for what. So that I can run a report later and sum any deposits/withdrawals to get the total amount allocated for whatever.

And even though this example is for my business, I do it for personal accounts too. Like 1 savings account where I may be saving for a car and a house and X and Y and Z....etc

Alexia

Thanks, @Lorenzo!

So in that case, you would have to make them into separate Asset accounts, yes. With that said, Wave isn't built with budgeting in mind, and this would make reconciling with your bank statements nigh impossible.

If you're just looking to keep track of the taxes you owe, you could enter them as bills, and categorize them to expense accounts of your own creation. You'll be able to keep track of them on the Bills page, or on your Account Transactions report.

Does that make more sense?

Lorenzo

Yes it does, ok thanks @Alexia