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Full Multi-currency for Liabilities
ioannist
Member Posts: 7
I have noticed that several Liability Categories do not allow for a currency selection. For example:
Expected Payments to Vendors
Due For Payroll
Due to You and Other Business Owners
Other Short-Term Liability
Other Long-Term Liability
This is rather crippling for any business that buys products/services in a currency other than its own, and maintains balances in multiple currencies.
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Currency selection is also missing from "Products and services" from Vendors. Waves is a great platform, but I think they should implement these features before advertising multi-currency as one of the system's core competencies.
Hi, @ioannist!
In Wave, only payments accounts can have a currency different from your default currency. Could you give me a bit more details about your business? It'll give me a better idea of how I can best help you.
As for Currency in the Products and Services section, well, currency isn't assigned on an item-by-item basis, in Wave, but to an entire bill or invoice. You'll be able to choose the appropriate currency when making either one of those.
Wave doesn't support businesses that operate in multiple currencies fully, at the moment. We're working on new features to make it easier to manage businesses like yours, but they aren't quite ready yet. I'd love to have more information on your situation, so we could have a better idea of what our users need from future multi-currency features.
Thanks for getting back Alexia. While playing around with the platform I found out that you can define a product with, say a price of 29 EUR (with no option to set a different currency), and then when you produce a bill you can enter the product and change the currency there, for example 29 USD. This is a bit counter-intuitive but it works.
Regarding the lack of multi-currency support for most Liability items, I am dealing with it by creating accounts under the Customer Prepayments and Customer Credits liability account, which supports multi-currency. It's far from ideal but it works.
I am trying to record a currency conversion through a journal entry. However, when I try to debit a USD denominated account and credit a EUR account, I get an Unbalanced error and the system blocks the transaction from being entered. The only way to make it balanced is to enter the same amount of USD and EUR which is obviously wrong as the exchange rate is not 1:1.
In other words, the system is imposing wrong journal entries when debits and credits are in different currencies. It would be great if you can remove the blocking, so that one could make the right entries. You don't have to remove the "Unbalanced" warning (this would require a lot more work). Removing the blocking of unbalanced transactions would be enough for educated users that use multi-currency. This might result in a very small % of users making wrong unbalanced entries in one currency, but that should not be an issue as the warnings remain.
Hi, @ioannist.
The price you assign to a product is just the number of units of whichever currency you end up selecting for your invoice. If you use multiple currencies, you'll either have to set up different products for different currencies or change the amount when you do invoice in a different currency.
As for the journal transaction, you can't do a journal transaction between accounts in different currencies. You'll have to handle it as a transfer. Here's how you can do this.
Wave uses the mid-market exchange rate from XE.com, so that rate might not exactly match what appears in your bank account. To adjust this, you'll have to create another transaction to adjust the amount. You can categorize this transaction to Gain/Loss on foreign exchange.
I think the link is wrong about the transfer process
My apologies, @ioannist! It's fixed now. Thank you for letting me know.
https://support.waveapps.com/hc/en-us/articles/208621616-How-to-create-a-transfer-between-two-accounts-e-g-categorize-a-credit-card-payment-