Debit and Credit - Switched
Hybridevolution
Member Posts: 1
Our business is slowly moving over to Wave. We have been struggling to reconcile due to the fact that our ending balance from our bank statements and Wave's ending balance hasn't matched up. We have uploaded bank statements as well. Today we realised that our Credit and Debit transactions are mixed up in Wave/transactions - our statements are correct and we have checked our uploaded statements (this does not correct it). Because the Debit and Credit columns are switched (e.g. according to Wave, our client's payments are seen as an outcome and our Dues and Subscriptions are seen as Income), the Balance column does not match on our side.
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Hi, @Hybridevolution.
Could you share a screenshot with a few lines from your bank statement? I'll be able to see what's happening, and hopefully, offer a solution.
Make sure you obfuscate any personal information from that screenshot as well. If you'd rather, you're welcome to send me that screenshot through private message, rather than in public.
I'm having the same issue as above, can you help?
Some of my invoices that have been payed are listed as debits?
It has doubled my income somehow.
Hey @ShaunC, thanks for reaching out! This Help Centre Article might be able to explains things here. Asset accounts, which would include bank accounts like checking or savings, treat Deposits as debits and withdrawals as credits in Wave.
In regards to your income being doubled can you explain that for me a little but more? Please note that if you have a connected bank account, all of your bank's transactions will ultimately end up getting imported into Wave. What this means is that if you manually record a payment on an invoice, you will end up with a duplicate when your bank deposit transaction gets imported into Wave.
Because of this, instead of recording the invoice payment manually, you can wait for the bank deposit transaction to be imported, and click the downward arrow on the right of the transaction. Select "Create Invoice Payment", locate the correct invoice, and click "Create Payment". This will effectively close the invoice without having to worry about duplicate transactions getting recorded on your books.
I connected directly to my bank through wave and debits and credits are switched. How do I correct
Hey there @GGNani
This typically requires an investigation with our support team.
As you may already know Wave uses a 3rd party banking aggregator called Plaid to "scrape" the information securely from your banking transactions page, then convert it to a transaction in Wave. If there is an issue, Plaid will then respond to Wave support to give them a clearer idea of what is going on with this particular bank.
I do sincerely apologize that your particular bank is being affected by a reversal of debits and credits at the moment.
Hoping you can get this resolved with our support team by submitting a ticket.
The same issue, I have to reverse my csv value from the bank for a liability account and can't reconcile as it is reversed. Credit as debits and vice versa
Hey @ThomasB !
To clarify, liability accounts are recorded differently than asset accounts. In general accounting for asset accounts, debits will be used to represent deposits into your account while credits will be used to represent withdrawals. For liability accounts (like credit cards or loans), debits will be used to represent payments to the account while credits will be used to represent expenses.
With this clarification, are your transactions still being displayed incorrectly?
I have my bank connected as an asset account, and all transactions come in with debits and credits switched. I have to manually fix each transaction, its a real pain in the neck.
Hey @Skajake !
There might be some confusion occurring here. Happy to bring some clarity to this. In general accounting for asset accounts, debits will be used to represent deposits into your account while credits will be used to represent withdrawals. For liability accounts (like credit cards), debits will be used to represent payments to the account while credits will be used to represent expenses.
We also have a great Help Center article that sheds light on this. Feel free to check it out here:
If your transactions are in fact listed incorrectly, please don't hesitate to reach back out.
My bank is set up under Cash and Bank under the Asset tab.
When I use my debit card to make a payment, it shows up as a deposit in Wave (green text).
When I transfer funds into my bank account it shows up as a withdrawal in Wave (black text).
That seems wrong to me but perhaps my understanding of accounting is wrong.
Hey @Skajake are the examples you've provided for same funds? As in, are you transferring funds from your bank account to another account (say credit card)? If so, it's normal to see 1 green and 1 black transaction for it. There needs to be two transactions to record one transfer:
We have an article from our Help Centre on How to create a transfer between two accounts on Wave that I recommend you give a read!
If I've missed the mark with this one, please share a screenshot of the transactions in question so that I can take a closer look.
I have somewhat a similar issue that I really can't explain so I attached an image. I made a purchase out of my business account using its debit card yet Wave reports it as three separate transactions; one as a deposit into the account and two as withdrawals whereas on the banks side it's one transaction. The account total reported by the app, however, is correct. I'm a bit confused.