Need help with inter-bank transfers.

Bruce_C49

i am reviewing a client's 12 months bank transactions. He has entered amounts taken from his US account and deposited to his Canadian account. Both appear as orphan items (income and expense) rather than "transfer from and transfer to". How can I correct these transactions as simple interbank transfers? Thanks

Alexia

Hi, @Bruce_C49,

You won't be able to link those two transactions as a single transfer, since they'll be considered to have different amounts, but there is a way around it by using an Undeposited Funds account in CAD as a middle-man for this transfer. Here's how I would record it.

1. Create your Undeposited Funds account (let's call it Transfer USD to CAD)
2. Categorize the expense from the USD account as a transfer to Transfer USD to CAD. Wave will automatically record it as CAD, using the mid-market exchange rate for XE.com from the day of the transaction.
3. If that doesn't match the actual CAD deposit, create a transaction to Transfer USD to CAD to account for the loss or gain on the exchange so that it does match up.
4. Categorize the deposit from the CAD account as a transfer from Transfer USD to CAD

That will make sure every step of the transfer is recorded and will link the two transactions together, with an extra step in the middle. I'm assuming the two transactions are in different currencies.

If they have matching currencies, you can just categorize one as "Transfer from..." manually. Wave should find the transfer in the other account and categorize it accordingly automatically.

Bruce_C49

Thanks -- will do that.