Hi @malley + @GeorgeyBoy . It looks like you're both correct so I have to apologize for trying to walk you through steps which don't work in this scenario. Because of the current limitations on foreign currency and invoices, you can't actually split out merchant costs in a transaction that is intended for a different currency, as the system won't allow you to assign it to an invoice of a different currency.
At the moment, there's no work around for this but our Accounting team will be working on building out the foreign currency functionality of the software in the near future. Although no guarantees as it's not completely mapped out, this additional functionality should solve this issue.
I get this error - no matter if I try to change the setting from the checking account transaction or the Wave Payments account.
Transfer account should have an equal amount of debit and credit in the transaction currency.
What's the way around this?
Hey @A2theB! Are you trying to account for a transaction with a different currency to the currency set for your account? If so, you might be running into the same issue AlexL described above. If not, are you able to share ab screenshot of the error you are running into, along with the transaction? Feel free to blur out any information you don't wish to share
@EmmaP said:
Hey @A2theB! Are you trying to account for a transaction with a different currency to the currency set for your account? If so, you might be running into the same issue AlexL described above. If not, are you able to share ab screenshot of the error you are running into, along with the transaction? Feel free to blur out any information you don't wish to share
Thanks for the response - I have a support ticket open on it now, but what I'm seeing now is that it doesn't save my changes even when I get the numbers set right on the transaction split.
No. I consistently have bank deposits that are made of income and expenses that have nothing to do with account fees. Categories include commissions (income), advertising, insurance, services, and various operational expenses. Why limit the expenses to which net deposit bank transactions can be split to only transaction fee expenses? If I were to do this manually to compensate for the inability to assign expenses to general expense accounts on a net deposit, it would be time consuming, tedious, and error prone. I enjoyed the system tremendously until I hit this problem!
Hi @Ann_arete2020! Are you able to explain the process you are currently using? When you invoice a customer do most of your customers withhold a portion for tax withholding, or is this a one off? Why are they withholding it? This extra insight will help us have abetter idea of what needs to happen next!
This is a one off. We were surprised that they withheld it. The customer is a business in Taiwan. We do use a liability account when we make quarterly tax payments for the business to Federal and State. When we do our taxes for 2019, we will be able to use this withholding amount to offset any taxes we owe. The invoice is of course showing an unpaid balance. We would like to show the invoice paid, but also record the withholding amount either in liabilities or in another apropriate account. Thanks.
Splitting a transaction with a positive and a negative isn't working for me. When I create a discount, it is supposed to show up as a negative, but it shows up as a positive. I am using the Discount category as created by Wave, with the description saying, "Discounts reduce your income, which is why it will be shown as a negative on the Profit and Loss report."
Is there any way to use an existing expense account as the negative offset? When I try to code the balance transfer from my paypal or venmo accounts into my checking account, it's usually a combination of different income and expense transactions. It's impossible to code these since I want to put an expense toward "Food" and other expense accounts, not just payment processing fees.
How do I account for the invoice payment and the bank deposit? I used to be able to split the bank deposit into an income entry and a expense entry then merge it with the invoice payment and merchant fee entries. Now I cannot. Help?
Do I need to delete the bank deposit? Or Do I need to delete the invoice payment recorded by "Payments by Wave"?
Otherwise, how do I reconcile this now in the new system?
Hi @Ann_arete2020! You would have to use a workaround to reflect this in Wave. I'd recommend checking out these posts on 'withholding tax' in Wave to see what other people have done: Withholding Tax on Sales & Withholding taxes.
Hi @flamestaffpress! I'm sorry to hear about the trouble you're having with this. Are you able to share some screenshots of what you are viewing or how you have set this discount up? This will be helpful for us to investigate further! Feel free to remove any sensitive information before sharing!
Hi @sejuday! It sounds like you are transferring a 'balance' so in Wave this would be categorized as a 'Transfer' from your PayPal/Venmo to your checking account. When splitting a transaction you can only add negative lines for discounts and fees. Is there any reason why you want to record all income/expense items from the balance transfer in the transaction rather than recording it as a 'transfer'?
Hey @digdanler! The best way to avoid these duplicate invoice payment transactions is to wait for the bank deposit transaction to be imported into your Transactions page in Wave. Once the transaction is imported, categorize it as 'Payment received for an Invoice' and select the outstanding invoice. This will avoid any duplicate income being created. For the duplicates you have already, you can select both income transactions and 'merge' them together.
Hi @AntCas! How do you currently import your Stripe transactions? Are you uploading Stripe statements, or do you have your Stripe account connected?
@EmmaP Hi, thank you for your response. Yes, I usually run into this with Venmo transfers. With Venmo, the transfer balance reflects money you have received from others, less any payments you have made to others. I want to be able to code these based on what the transaction was (e.g. if the transfer was for $75, I want to code $100 of that as income for sewing alterations and $25 of it as food expense from splitting a restaurant bill with a friend). I would treat it as a transfer if venmo was available to be synched like a bank account but it is currently not on the list. Since I can't import the transactions like I do my credit card, I have to break them out manually when I get the cash transfer. Any assistance would be helpful. Thanks!
I'm new to Wave and I have a similar situation to @sejuday. I use a electronic payment service which processes sales, refunds, payroll expenses and processing fees. Every week the net amount is credited/debited from my bank, so there is a single transaction. How do I split this and properly categorize everything? So far, I'm only able to separate the processing fees (as a Discounts & Fees). I used QB before and it was possible there.
@sejuday@K3897 Thanks for explaining this further for us. If you receive a lump sum but are looking to further split this out, there is a couple of steps. First, you will need to create a journal entry as the article discusses that includes the "sales" and the "merchant fees" accounts. This will ensure that the fees are taken out of the total amount deposited. The "Sales" account is used as a catch all for your income that is collected from invoices. If you want to split this out into other income accounts, you can replace the "Sales" account with the different income accounts and then assign the amounts that correspond to each one.
@JordanD, thanks for the reply, but I'm still not getting it. Let me try again with a specific example. Say, my payment processing service credits my bank account with $999. I want the split this as follows: $1200 Sales, $200 Payroll Expense, $1 Transaction fee.
When I go to categorize the transaction, I can have Sales = 1200, Discount/fee = 1, but I can't figure out how to put 200 towards Payroll.
Hey @K3897! What if you just split that deposit once more? You can click 'Split this Deposit' again to have a third line in the transaction of the split. Does that work for your particular example there?
@Steve_SG thanks for your input. Can you give us your particular situation so we can help troubleshoot examples together?
@ConnorM, the problem isn't how many times you can split a transaction. The problem is you can't categorize it as an Payroll Expense.
It seems because the transaction is a "deposit", the categories available are limited. You are not able to categorize anything to an expense account. Normally that makes sense, but if it's a split transaction as I described, it doesn't work very well.
In my case, it's bank transaction fees. This customer passes their charges, in USD, along to me, so what actually arrives in the account is $10 short. Bank charges on my side, in local currency, I can account for. Since I can't split the invoice payment, each time the customer pays, it shows them as owing $10 more.
Hi @K3897 & @Steve_SG! The only option that will allow to to create a negative split line item is if you select the 'discounts & fees' category. You can find this in your Chart of Accounts page under 'expenses'. You would have to add expense accounts there for bank fees or other expenses if you are completing a split.
Hey @Steve_SG! It should, but you may need to add those extra accounts for those adjustments (if necessary) as Emma had mentioned in her previous post!
I perform the same transaction with a discount and a processing fee multiple times. Is it possible to save a template of the split transaction to recall for the next client?
Hi there,
Can I ask you if the below is correct?
I don't have the bank account connected to Wave and I use a different tool also to issue my invoices. When mu customer pay, Stripe will deduct a fee and send to my bank the remaining part.
So for example the sale made is for 100 EUR, Stripe will retain 3 EUR and send to my bank 97 EUR.
The way I am accounting for this transaction following your example is,
record 97 EUR as deposit in my bank
split the payment as 100 (as category sales) and 3 (as category Stripe fees under the Discount category)
Is this correct?
Also, Stripe send me the invoice for the service of 3 EUR and there is Irish VAT charged...how to account for this VAT?
Thanks for your help
Regards
How is this handled for face-to-face, farmers-market businesses that don't use invoices? When I get my deposit from Square the next business day, it already has the fees taken out and I categorize the transaction as Food & Beverage Sales. How should I account for the fees? If I try to split the deposit to include the fee as a negative amount, I'm told that the amount for the fee still needs to be categorized even though I've already marked it as Merchant Account Fees. Do I need to make a separate entry somewhere (journal?) for the fees?
If I were using invoices, I could see where this could go, but with face-to-face business, taking credit-card payments with Square, the total amount of the sale never actually shows up in my bank statement because the deposit from Square already has the fee taken out.
Comments
@AlexL I'm actually working through the exact same issue as @malley
Any insight into this would be greatly appreciated!
Thanks!
Hi @malley + @GeorgeyBoy . It looks like you're both correct so I have to apologize for trying to walk you through steps which don't work in this scenario. Because of the current limitations on foreign currency and invoices, you can't actually split out merchant costs in a transaction that is intended for a different currency, as the system won't allow you to assign it to an invoice of a different currency.
At the moment, there's no work around for this but our Accounting team will be working on building out the foreign currency functionality of the software in the near future. Although no guarantees as it's not completely mapped out, this additional functionality should solve this issue.
I get this error - no matter if I try to change the setting from the checking account transaction or the Wave Payments account.
Transfer account should have an equal amount of debit and credit in the transaction currency.
What's the way around this?
Hey @A2theB! Are you trying to account for a transaction with a different currency to the currency set for your account? If so, you might be running into the same issue AlexL described above. If not, are you able to share ab screenshot of the error you are running into, along with the transaction? Feel free to blur out any information you don't wish to share
Thanks for the response - I have a support ticket open on it now, but what I'm seeing now is that it doesn't save my changes even when I get the numbers set right on the transaction split.
No. I consistently have bank deposits that are made of income and expenses that have nothing to do with account fees. Categories include commissions (income), advertising, insurance, services, and various operational expenses. Why limit the expenses to which net deposit bank transactions can be split to only transaction fee expenses? If I were to do this manually to compensate for the inability to assign expenses to general expense accounts on a net deposit, it would be time consuming, tedious, and error prone. I enjoyed the system tremendously until I hit this problem!
Would this be the recommended method when a portion of your invoice is withheld by a customer for tax withholding?
Hi @Ann_arete2020! Are you able to explain the process you are currently using? When you invoice a customer do most of your customers withhold a portion for tax withholding, or is this a one off? Why are they withholding it? This extra insight will help us have abetter idea of what needs to happen next!
This is a one off. We were surprised that they withheld it. The customer is a business in Taiwan. We do use a liability account when we make quarterly tax payments for the business to Federal and State. When we do our taxes for 2019, we will be able to use this withholding amount to offset any taxes we owe. The invoice is of course showing an unpaid balance. We would like to show the invoice paid, but also record the withholding amount either in liabilities or in another apropriate account. Thanks.
Splitting a transaction with a positive and a negative isn't working for me. When I create a discount, it is supposed to show up as a negative, but it shows up as a positive. I am using the Discount category as created by Wave, with the description saying, "Discounts reduce your income, which is why it will be shown as a negative on the Profit and Loss report."
Is there any way to use an existing expense account as the negative offset? When I try to code the balance transfer from my paypal or venmo accounts into my checking account, it's usually a combination of different income and expense transactions. It's impossible to code these since I want to put an expense toward "Food" and other expense accounts, not just payment processing fees.
How do I account for the invoice payment and the bank deposit? I used to be able to split the bank deposit into an income entry and a expense entry then merge it with the invoice payment and merchant fee entries. Now I cannot. Help?
Do I need to delete the bank deposit? Or Do I need to delete the invoice payment recorded by "Payments by Wave"?
Otherwise, how do I reconcile this now in the new system?
Is there any way to automate this?
In particular I'm trying to automate transaction splitting with transactions processed by Stripe.
Hi @Ann_arete2020! You would have to use a workaround to reflect this in Wave. I'd recommend checking out these posts on 'withholding tax' in Wave to see what other people have done: Withholding Tax on Sales & Withholding taxes.
Hi @flamestaffpress! I'm sorry to hear about the trouble you're having with this. Are you able to share some screenshots of what you are viewing or how you have set this discount up? This will be helpful for us to investigate further! Feel free to remove any sensitive information before sharing!
Hi @sejuday! It sounds like you are transferring a 'balance' so in Wave this would be categorized as a 'Transfer' from your PayPal/Venmo to your checking account. When splitting a transaction you can only add negative lines for discounts and fees. Is there any reason why you want to record all income/expense items from the balance transfer in the transaction rather than recording it as a 'transfer'?
Hey @digdanler! The best way to avoid these duplicate invoice payment transactions is to wait for the bank deposit transaction to be imported into your Transactions page in Wave. Once the transaction is imported, categorize it as 'Payment received for an Invoice' and select the outstanding invoice. This will avoid any duplicate income being created. For the duplicates you have already, you can select both income transactions and 'merge' them together.
Hi @AntCas! How do you currently import your Stripe transactions? Are you uploading Stripe statements, or do you have your Stripe account connected?
@EmmaP Hi, thank you for your response. Yes, I usually run into this with Venmo transfers. With Venmo, the transfer balance reflects money you have received from others, less any payments you have made to others. I want to be able to code these based on what the transaction was (e.g. if the transfer was for $75, I want to code $100 of that as income for sewing alterations and $25 of it as food expense from splitting a restaurant bill with a friend). I would treat it as a transfer if venmo was available to be synched like a bank account but it is currently not on the list. Since I can't import the transactions like I do my credit card, I have to break them out manually when I get the cash transfer. Any assistance would be helpful. Thanks!
I'm new to Wave and I have a similar situation to @sejuday. I use a electronic payment service which processes sales, refunds, payroll expenses and processing fees. Every week the net amount is credited/debited from my bank, so there is a single transaction. How do I split this and properly categorize everything? So far, I'm only able to separate the processing fees (as a Discounts & Fees). I used QB before and it was possible there.
@sejuday @K3897 Thanks for explaining this further for us. If you receive a lump sum but are looking to further split this out, there is a couple of steps. First, you will need to create a journal entry as the article discusses that includes the "sales" and the "merchant fees" accounts. This will ensure that the fees are taken out of the total amount deposited. The "Sales" account is used as a catch all for your income that is collected from invoices. If you want to split this out into other income accounts, you can replace the "Sales" account with the different income accounts and then assign the amounts that correspond to each one.
@JordanD, thanks for the reply, but I'm still not getting it. Let me try again with a specific example. Say, my payment processing service credits my bank account with $999. I want the split this as follows: $1200 Sales, $200 Payroll Expense, $1 Transaction fee.
When I go to categorize the transaction, I can have Sales = 1200, Discount/fee = 1, but I can't figure out how to put 200 towards Payroll.
+1 for fixing the foreign currency split issue. I just ran into this myself. Is there any workaround?
Hey @K3897! What if you just split that deposit once more? You can click 'Split this Deposit' again to have a third line in the transaction of the split. Does that work for your particular example there?
@Steve_SG thanks for your input. Can you give us your particular situation so we can help troubleshoot examples together?
@ConnorM, the problem isn't how many times you can split a transaction. The problem is you can't categorize it as an Payroll Expense.
It seems because the transaction is a "deposit", the categories available are limited. You are not able to categorize anything to an expense account. Normally that makes sense, but if it's a split transaction as I described, it doesn't work very well.
In my case, it's bank transaction fees. This customer passes their charges, in USD, along to me, so what actually arrives in the account is $10 short. Bank charges on my side, in local currency, I can account for. Since I can't split the invoice payment, each time the customer pays, it shows them as owing $10 more.
Hi @K3897 & @Steve_SG! The only option that will allow to to create a negative split line item is if you select the 'discounts & fees' category. You can find this in your Chart of Accounts page under 'expenses'. You would have to add expense accounts there for bank fees or other expenses if you are completing a split.
Thanks EmmaP. Does this work with foreign currencies?
Hey @Steve_SG! It should, but you may need to add those extra accounts for those adjustments (if necessary) as Emma had mentioned in her previous post!
I perform the same transaction with a discount and a processing fee multiple times. Is it possible to save a template of the split transaction to recall for the next client?
Hi there,
Can I ask you if the below is correct?
I don't have the bank account connected to Wave and I use a different tool also to issue my invoices. When mu customer pay, Stripe will deduct a fee and send to my bank the remaining part.
So for example the sale made is for 100 EUR, Stripe will retain 3 EUR and send to my bank 97 EUR.
The way I am accounting for this transaction following your example is,
Is this correct?
Also, Stripe send me the invoice for the service of 3 EUR and there is Irish VAT charged...how to account for this VAT?
Thanks for your help
Regards
If I were using invoices, I could see where this could go, but with face-to-face business, taking credit-card payments with Square, the total amount of the sale never actually shows up in my bank statement because the deposit from Square already has the fee taken out.
Hey there @CoachKevin
You can't unfortunately save the transaction as a template but you can duplicate it and change the details.
@mario_var7
That sounds correct! To account for 3% VAT on your 3 EUR you'll want to create the vat sales tax then add it to your 3 EUR transaction
It still requires me to categorise the remaining fee, even though I have already done that following above!