Hi I'm trying to account for the international transaction fees that are charged by my bank to me when I make a purchase where the vendor is located outside of Australia. How do I categorize this? This is different to merchant fees charged by my bank when I process payments, it is a separate line in my transaction feed labelled "international transaction fee" that is related to the purchase I made.
It is a percentage amount that varies bank to bank (This is charged by 3 of my banks)
@mafriciman said:
Hi I'm trying to account for the international transaction fees that are charged by my bank to me when I make a purchase where the vendor is located outside of Australia. How do I categorize this? This is different to merchant fees charged by my bank when I process payments, it is a separate line in my transaction feed labelled "international transaction fee" that is related to the purchase I made.
It is a percentage amount that varies bank to bank (This is charged by 3 of my banks)
Hey @AndrewP , I'm not fully understanding what you mean by this. Can you explain further?
Hi @mafriciman . You can create an account in your Chart of Accounts Expense category called "Bank Fees" and create a transaction in your Transactions page categorized as such.
Following this article... trying to subtract the $2.25 processing fee from my order of $50... but each time I follow these steps it says "$2.25 remaining to be categorized." There's a categorize button that appears below the split. When clicked on it adds a positive $2.25 split transaction in addition to the subtracted one. How can I avoid this? I simply want to take my $50 sale and subtract the $2.25 transaction fee, so it results in $47.75 being deposited into my account. I used the Process Fees category per this article. The $2.25 fee goes to Stripe, so why is Wave trying to force me to add it to an income account?
@KevinK
I was having same issue. Steps above arent as articulate as they need to be. Your $50 in Deposit amount needs to be decremented by the processing fee. Their image shows it, but their steps don't. Does that help?
EDIT: I missed this in the post: To make the $3 fee negative in Wave, select Discounts and Fees from the category dropdown. The transaction will automatically be marked as negative.
Your article states that for processing fees (or merchant fees in my case) you can split a transaction to include a deposit and debit, however that is not true. When I try to do this, I can not add an expense if my type is Deposit.
@LAH Thanks, I really appreciate your help! That was it...and it makes sense now why I could get it to work. I didn't realize I would have to manually subtract the fee for the total amount. Now I'm understanding what someone else was complaining about on a similar thread.
Dear. There are difficult to use this method. I got one payment for more than 30 invoices, need to click one by one, and the most problems are, the split amount wont automatic count as the invoice value, need to key in manually, and the invoice will be still appeared in the drop list. So when you are entering more than 30 invoices for a payment, there are big issue about matching.
Glad to hear you folks sorted this out As you can see from the screenshot, the deposit amount needs to be minus the fees, while the income account would include those fees!
Our system only lets you choose one expense account which is a merchant fees account. The rest of the time you aren't able to split an income transaction into other expense accounts at this time.
Take a look at some of our upcoming accounting changes in this latest release we're hoping to launch soon! This should fix the need to manually input those numbers on a split transaction!
Thanks for your feedback regarding the drop list and automatically count issue. Hope this can solve it as soon as possible. Other than that, the problem for bulk import to wave invoice such as Amazon bill or online shop, there are bulk invoice transactions. The Google sheets default setting that the customer have to preset, however, this is not practical due to the online shop are fresh everyday. However, I decided to don get customer data, then just put in cash bill, but the sheets will mentioned that the customer ID duplicate, only able to upload one invoice with same invoice number. Please guide me if want to import bulk invoices either wave allow to data entry the customer new name which the system doesn't have it, or, if former unable to done, what if same customer ID (cash or amazon collection) , but bulk invoices.
I struggled to find a way to accurately record the invoice payment, record transaction fees and merge my invoice with a bank transaction. But I did figure out a process. Posting it here in case it's useful to anyone else.
Let's say you invoiced your customer for $100 but you only received $97, meaning you paid $3 in transaction fees.
1) Go to Sales > Invoicing and select the invoice
2) Click "add a payment" and enter for the amount you received after transaction fees. e.g. $97.
3) Click "add a payment" AGAIN, and do this for the remainder which is the transaction fee of $3.
4) Go to Accounting > Transactions
5) Click "Add expense" and make it $3 expense as withdrawal from whichever account received the income. Mark the expense category as Transaction Fees. (At this point, there should be three transactions you've created. Two for the invoice, and one as the expense)
6) Merge the $97 invoice transaction with your bank transaction
7) PROFIT
The reason you want to do two payments to the invoice is so you can still have the invoice show up as fully paid in wave and still be able to merge the $97 invoice payment with the bank charge.
I have a very similar situation. I receive rental income to my bank net of fees. These fees can include management fees, repairs etc. I have expense accounts for these different expense categories but since but since they are not discounts and fees expenses, I cannot put these in as negatives directly against the bank receipts.
I am currently having to do a separate journal entry to add additional rent (i.e. to make it gross) and then do the corresponding expenses against that. It achieves the desired result but it would be quicker and cleaner if all expenses were available against income received in the bank.
Thanks so much for the feedback here! Just curious are you trying to reconcile your accounts as well? For those who try to reconcile their accounts, this double transaction may not work out. In order to reconcile your accounts you should be able to split the transaction using the split transaction function in Wave, assign the $97 to your invoice, and the rest to the merchant account fees and remove the invoice payment transaction. When you assign part of that split it should mark the invoice as paid.
I'd recommend creating the expense account for those fees > collecting the full amount of the invoice into your income account > Then create a journal transaction where you debit the income account and credit the newly created expense accounts for each invoice that has fees! This should move the sales income to an expense account to ensure your fees are accounted for properly. This is a workaround, however it should be correct!
Yes I do reconciling but I haven't reconciled for my first month with my first invoice. Ok I think i figured out how to do this the right way now. The problem is I needed to assign the $100 amount to the invoice, otherwise the invoice shows another $3 as outstanding. so think what i need to do is not use the "add payment" option in the invoicing page. And just add a new "income" entry for $97, split it so that $100 goes to the invoice and -$3 goes to fees. took me a while to figure this out because it wasn't intuitive to get the "minus" to work. I had to specifically choose a "discounts and fees" category to get it to show up as a minus.
Hi - I've used this feature once before, but it isn't working for me now.
I've marked an invoice that was paid for outside of wave as paid (recorded a payment for the amount of £60). Now I have a transaction under accounting for £60. I have a Go Cardless processing fee that I'd like to account for, that is 80p.
So, I split the deposit and choose the "Discounts and Fee's" category and choose the "Merchant Account Fee's" option which prompts for a minus figure. I enter 0.80 but then get a message "0.80 remaining to be categorised".
I've tired adding a new account under the "Discounts and Fee's" category called "Go Cardless Fee" and I get the same error.
Can you help? I don't know why this worked the first time and not now.
To clarify, is the transaction in question for £60 or for £59.20 (the after fee amount)? If the transaction is for £59.20, you should be able to split the deposit and assign £60 to the invoice as a payment, and the fee amount of £0.80 as the fee.
In the end, your transaction should resemble something like this. Splitting the deposit this way allows you to assign the full invoice amount an invoice so it's fully paid, whilst still having a deposit that is less the invoice total amount (the invoice amount minus fees).
If the fees were credited from your account after the deposit, then there is no need to split the deposit. Instead, you can keep the full £60 applied to the invoice, and simply categorize the fee amount as needed, as a separate transaction.
Does this feature work yet for foreign currency transactions? For example if my base currency is CAD, the invoice in USD and the transaction charges in USD, can I account for this? I looked at the UPDATES TO THE TRANSACTIONS SPLITTING FEATURE page, but didn't see this mentioned. The putting in of exact amounts on both sides and calculating the exchange rate is welcome though, thanks.
EmmaP mentioned a work-around in March, and I'm hoping that this functionality has been rolled into the product so we don't have to use the workaround any more.
Hi there @Steve_SG , thanks for your message! I'm afraid that if the base currency is CAD and the invoice & transaction is USD, then the transaction will not be able to be edited, as it is a foreign invoice & transaction. In future versions of the transactions page, which our team is rewriting right now, greater control over foreign currency transactions will be available!
I have a similar situation to @Rich where I receive a net amount in my bank account after different expenses are taken out. And I am not following the answer supplied by @BarsinA as I am new to Wave Accounting coming across from another software program which allowed this with ease. I upload my bank transactions each month as I am in Australia. I was hoping to get it explained in more detail.
For example I receive $200 net income in my bank account, however my actual gross amount is $500, then there are monthly fees and other expenses that total $300. I have set up Operating Expenses for each of the fees and other expenses.
I have tried adding an expense transaction in my bank account and splitting the operating expenses and then creating an Invoice for the gross amount, however I cannot merge these transactions.
I have tried changing the entry from my bank statement to be the gross amount and split the expenses but I can only refund for expense which gives me negative amount for those operating expenses.
I tried following the answer below, but I got lost when I had to create a journal transaction.
I have spent hours and hours trying to figure this out, but cant get it to have the correct transactions in each operating expense and income account.
Am I best changing the entry from my bank statement to the gross amount and adding an expense transaction (with split operating expenses) to get it to reconcile? OR should I move my Operating expense codes to fall under Payment Processing Fee (even though they are not technically payment processing charges) so i can easily split the fees in the transaction screen? My only issue with this is I am not sure if this has any other affects on my accounting reporting etc.
If you could advise the correct steps to do this it would be greatly appreciated. Thanks
@MickM said:
I have a similar situation to @Rich where I receive a net amount in my bank account after different expenses are taken out. And I am not following the answer supplied by @BarsinA as I am new to Wave Accounting coming across from another software program which allowed this with ease. I upload my bank transactions each month as I am in Australia. I was hoping to get it explained in more detail.
For example I receive $200 net income in my bank account, however my actual gross amount is $500, then there are monthly fees and other expenses that total $300. I have set up Operating Expenses for each of the fees and other expenses.
I have tried adding an expense transaction in my bank account and splitting the operating expenses and then creating an Invoice for the gross amount, however I cannot merge these transactions.
I have tried changing the entry from my bank statement to be the gross amount and split the expenses but I can only refund for expense which gives me negative amount for those operating expenses.
I tried following the answer below, but I got lost when I had to create a journal transaction.
I have spent hours and hours trying to figure this out, but cant get it to have the correct transactions in each operating expense and income account.
Am I best changing the entry from my bank statement to the gross amount and adding an expense transaction (with split operating expenses) to get it to reconcile? OR should I move my Operating expense codes to fall under Payment Processing Fee (even though they are not technically payment processing charges) so i can easily split the fees in the transaction screen? My only issue with this is I am not sure if this has any other affects on my accounting reporting etc.
If you could advise the correct steps to do this it would be greatly appreciated. Thanks
There is a couple of ways of doing it. In the below image the net amount received was £403.04 but the gross was £440. I have added the additional rent received to make gross as rental income. I have then used an expense (in my case Rental Deductions - but most be of Expense Type "Payment Processing Fee") to deduct the what was taken from the gross payment.
Because 'Rental Deductions' is not really a correct classification (and there might also be many elements to the difference between gross and net) I have then journaled the 'Rental Deductions' to assign to the correct costs.
Alternatively, you can just record the net payment to the right category. (The gross payment here was an additional £57.90)
and then journal the 'missing gross income' against the expense
@Rich - That is totally awesome. Thanks so much for taking the time to explain and add the screenshots. I followed your first steps and decided to add a Payment Processing Fee grouping the expenses together, then journal entry separating them. Worked brilliantly.
Its a shame we cant use the individual Operating Expenses directly under the transaction as that would be so much more user friendly and less time consuming, but this is a work around I guess.
Thanks so much. Greatly appreciated.
There is a couple of ways of doing it. In the below image the net amount received was £403.04 but the gross was £440. I have added the additional rent received to make gross as rental income. I have then used an expense (in my case Rental Deductions - but most be of Expense Type "Payment Processing Fee") to deduct the what was taken from the gross payment.
Ok so this is great if we invoice in the same currency that we work with but if we invoice in foreign currency this method isn't possible! Therefore I suggest:
When recording a payment in the invoices screen (which is the only way to record payments for foreign currency invoices) we should be able to select "Write off" for Payment Method AND MOST IMPORTANTLY select the "Payment Processing Fee" account under the "Payment account" field.
My current workaround for this is using a "Money Transit" account to record the payment temporarily before moving it to the "Payment Processing Fee" account. But this workaround produces a very bazaar ERROR in forex as explained in my comment on a related topic here; https://community.waveapps.com/discussion/comment/37295#Comment_37295
@CallieP said:
Hi there @Steve_SG , thanks for your message! I'm afraid that if the base currency is CAD and the invoice & transaction is USD, then the transaction will not be able to be edited, as it is a foreign invoice & transaction. In future versions of the transactions page, which our team is rewriting right now, greater control over foreign currency transactions will be available!
@AndréKoch , will you please elaborate a bit more about how you do this? I've created a money-in-transit account, in USD, which is the currency of the invoice, yet the invoice never appears in any of the drop-downs as a choice to record a payment for. @CallieP, if this works it may be worth documenting the workaround somewhere. Working in multiple currencies in rather painful at the moment and anything you can do to ease the pain would be helpful.
Is there any way to bulk upload or bulk edit such transactions?
I get a CSV file from our payment processors where each row contains a column for the total price and a column for the fee, but I lose that information when I try to upload to Wave.
The discount and fee would not populate so did not work. I ended up manually recording full payment for the invoice and then doing a general journal entry to record the bank fee.
Comments
Hi I'm trying to account for the international transaction fees that are charged by my bank to me when I make a purchase where the vendor is located outside of Australia. How do I categorize this? This is different to merchant fees charged by my bank when I process payments, it is a separate line in my transaction feed labelled "international transaction fee" that is related to the purchase I made.
It is a percentage amount that varies bank to bank (This is charged by 3 of my banks)
@BarsinA can you please help with this?
Hey @AndrewP , I'm not fully understanding what you mean by this. Can you explain further?
Hi @mafriciman . You can create an account in your Chart of Accounts Expense category called "Bank Fees" and create a transaction in your Transactions page categorized as such.
Following this article... trying to subtract the $2.25 processing fee from my order of $50... but each time I follow these steps it says "$2.25 remaining to be categorized." There's a categorize button that appears below the split. When clicked on it adds a positive $2.25 split transaction in addition to the subtracted one. How can I avoid this? I simply want to take my $50 sale and subtract the $2.25 transaction fee, so it results in $47.75 being deposited into my account. I used the Process Fees category per this article. The $2.25 fee goes to Stripe, so why is Wave trying to force me to add it to an income account?
Screenshot for reference - https://snipboard.io/jk6u03.jpg
@KevinK
I was having same issue. Steps above arent as articulate as they need to be. Your $50 in Deposit amount needs to be decremented by the processing fee. Their image shows it, but their steps don't. Does that help?
Your article states that for processing fees (or merchant fees in my case) you can split a transaction to include a deposit and debit, however that is not true. When I try to do this, I can not add an expense if my type is Deposit.
Importing from a zapier zap works fine (https://cloudup.com/ciMZ63MWi1f), but to do it manually, I am unable to change the split from a
+to a-on the merchant fee (https://cloudup.com/cF3qVBp80Fw)Is something broken, or am I doing something wrong?
@LAH Thanks, I really appreciate your help! That was it...and it makes sense now why I could get it to work. I didn't realize I would have to manually subtract the fee for the total amount. Now I'm understanding what someone else was complaining about on a similar thread.
Dear. There are difficult to use this method. I got one payment for more than 30 invoices, need to click one by one, and the most problems are, the split amount wont automatic count as the invoice value, need to key in manually, and the invoice will be still appeared in the drop list. So when you are entering more than 30 invoices for a payment, there are big issue about matching.
Hey there @KevinK @LAH
Glad to hear you folks sorted this out
As you can see from the screenshot, the deposit amount needs to be minus the fees, while the income account would include those fees!
Hey @bretterer
Our system only lets you choose one expense account which is a merchant fees account. The rest of the time you aren't able to split an income transaction into other expense accounts at this time.
Hi @Reeve
Take a look at some of our upcoming accounting changes in this latest release we're hoping to launch soon! This should fix the need to manually input those numbers on a split transaction!
Hey @Reeve , I'm afraid I'm not understanding the situation. Are you able to explain this for me in a different way please?
I struggled to find a way to accurately record the invoice payment, record transaction fees and merge my invoice with a bank transaction. But I did figure out a process. Posting it here in case it's useful to anyone else.
Let's say you invoiced your customer for $100 but you only received $97, meaning you paid $3 in transaction fees.
1) Go to Sales > Invoicing and select the invoice
2) Click "add a payment" and enter for the amount you received after transaction fees. e.g. $97.
3) Click "add a payment" AGAIN, and do this for the remainder which is the transaction fee of $3.
4) Go to Accounting > Transactions
5) Click "Add expense" and make it $3 expense as withdrawal from whichever account received the income. Mark the expense category as Transaction Fees. (At this point, there should be three transactions you've created. Two for the invoice, and one as the expense)
6) Merge the $97 invoice transaction with your bank transaction
7) PROFIT
The reason you want to do two payments to the invoice is so you can still have the invoice show up as fully paid in wave and still be able to merge the $97 invoice payment with the bank charge.
I hope you found this helpful.
I have a very similar situation. I receive rental income to my bank net of fees. These fees can include management fees, repairs etc. I have expense accounts for these different expense categories but since but since they are not discounts and fees expenses, I cannot put these in as negatives directly against the bank receipts.
I am currently having to do a separate journal entry to add additional rent (i.e. to make it gross) and then do the corresponding expenses against that. It achieves the desired result but it would be quicker and cleaner if all expenses were available against income received in the bank.
Hey @BogusRed
Thanks so much for the feedback here! Just curious are you trying to reconcile your accounts as well? For those who try to reconcile their accounts, this double transaction may not work out. In order to reconcile your accounts you should be able to split the transaction using the split transaction function in Wave, assign the $97 to your invoice, and the rest to the merchant account fees and remove the invoice payment transaction. When you assign part of that split it should mark the invoice as paid.
Hi @rich
I'd recommend creating the expense account for those fees > collecting the full amount of the invoice into your income account > Then create a journal transaction where you debit the income account and credit the newly created expense accounts for each invoice that has fees! This should move the sales income to an expense account to ensure your fees are accounted for properly. This is a workaround, however it should be correct!
Hi @BarsinA
Thank you for the comment.
Yes I do reconciling but I haven't reconciled for my first month with my first invoice. Ok I think i figured out how to do this the right way now. The problem is I needed to assign the $100 amount to the invoice, otherwise the invoice shows another $3 as outstanding. so think what i need to do is not use the "add payment" option in the invoicing page. And just add a new "income" entry for $97, split it so that $100 goes to the invoice and -$3 goes to fees. took me a while to figure this out because it wasn't intuitive to get the "minus" to work. I had to specifically choose a "discounts and fees" category to get it to show up as a minus.
hopefully this is correct now
Hey @BogusRed
Hoping that this will be address in our UPDATES TO THE TRANSACTIONS SPLITTING FEATURE which we are hoping to come soon! But yes this sounds correct now!
Hi - I've used this feature once before, but it isn't working for me now.
I've marked an invoice that was paid for outside of wave as paid (recorded a payment for the amount of £60). Now I have a transaction under accounting for £60. I have a Go Cardless processing fee that I'd like to account for, that is 80p.
So, I split the deposit and choose the "Discounts and Fee's" category and choose the "Merchant Account Fee's" option which prompts for a minus figure. I enter 0.80 but then get a message "0.80 remaining to be categorised".
I've tired adding a new account under the "Discounts and Fee's" category called "Go Cardless Fee" and I get the same error.
Can you help? I don't know why this worked the first time and not now.
@AlexL @BarsinA see my post below - thanks!
Good afternoon @Pipsqueaker20!
To clarify, is the transaction in question for £60 or for £59.20 (the after fee amount)? If the transaction is for £59.20, you should be able to split the deposit and assign £60 to the invoice as a payment, and the fee amount of £0.80 as the fee.
In the end, your transaction should resemble something like this. Splitting the deposit this way allows you to assign the full invoice amount an invoice so it's fully paid, whilst still having a deposit that is less the invoice total amount (the invoice amount minus fees).
If the fees were credited from your account after the deposit, then there is no need to split the deposit. Instead, you can keep the full £60 applied to the invoice, and simply categorize the fee amount as needed, as a separate transaction.
Hope this helps!
Thanks @Kristian_G - this is resolved
Does this feature work yet for foreign currency transactions? For example if my base currency is CAD, the invoice in USD and the transaction charges in USD, can I account for this? I looked at the UPDATES TO THE TRANSACTIONS SPLITTING FEATURE page, but didn't see this mentioned. The putting in of exact amounts on both sides and calculating the exchange rate is welcome though, thanks.
EmmaP mentioned a work-around in March, and I'm hoping that this functionality has been rolled into the product so we don't have to use the workaround any more.
Hi there @Steve_SG , thanks for your message! I'm afraid that if the base currency is CAD and the invoice & transaction is USD, then the transaction will not be able to be edited, as it is a foreign invoice & transaction. In future versions of the transactions page, which our team is rewriting right now, greater control over foreign currency transactions will be available!
I have a similar situation to @Rich where I receive a net amount in my bank account after different expenses are taken out. And I am not following the answer supplied by @BarsinA as I am new to Wave Accounting coming across from another software program which allowed this with ease. I upload my bank transactions each month as I am in Australia. I was hoping to get it explained in more detail.
For example I receive $200 net income in my bank account, however my actual gross amount is $500, then there are monthly fees and other expenses that total $300. I have set up Operating Expenses for each of the fees and other expenses.
I have tried adding an expense transaction in my bank account and splitting the operating expenses and then creating an Invoice for the gross amount, however I cannot merge these transactions.
I have tried changing the entry from my bank statement to be the gross amount and split the expenses but I can only refund for expense which gives me negative amount for those operating expenses.
I tried following the answer below, but I got lost when I had to create a journal transaction.
I have spent hours and hours trying to figure this out, but cant get it to have the correct transactions in each operating expense and income account.
Am I best changing the entry from my bank statement to the gross amount and adding an expense transaction (with split operating expenses) to get it to reconcile? OR should I move my Operating expense codes to fall under Payment Processing Fee (even though they are not technically payment processing charges) so i can easily split the fees in the transaction screen? My only issue with this is I am not sure if this has any other affects on my accounting reporting etc.
If you could advise the correct steps to do this it would be greatly appreciated. Thanks
There is a couple of ways of doing it. In the below image the net amount received was £403.04 but the gross was £440. I have added the additional rent received to make gross as rental income. I have then used an expense (in my case Rental Deductions - but most be of Expense Type "Payment Processing Fee") to deduct the what was taken from the gross payment.
Because 'Rental Deductions' is not really a correct classification (and there might also be many elements to the difference between gross and net) I have then journaled the 'Rental Deductions' to assign to the correct costs.
Alternatively, you can just record the net payment to the right category. (The gross payment here was an additional £57.90)
and then journal the 'missing gross income' against the expense
Hope that helps
@Rich - That is totally awesome. Thanks so much for taking the time to explain and add the screenshots. I followed your first steps and decided to add a Payment Processing Fee grouping the expenses together, then journal entry separating them. Worked brilliantly.
Its a shame we cant use the individual Operating Expenses directly under the transaction as that would be so much more user friendly and less time consuming, but this is a work around I guess.
Thanks so much. Greatly appreciated.
Ok so this is great if we invoice in the same currency that we work with but if we invoice in foreign currency this method isn't possible! Therefore I suggest:
My current workaround for this is using a "Money Transit" account to record the payment temporarily before moving it to the "Payment Processing Fee" account. But this workaround produces a very bazaar ERROR in forex as explained in my comment on a related topic here; https://community.waveapps.com/discussion/comment/37295#Comment_37295
Hi @CallieP, I suggest taking a look at my comment which will provide an easy fix for foreign currency invoices; https://community.waveapps.com/discussion/comment/37393#Comment_37393
@AndréKoch , will you please elaborate a bit more about how you do this? I've created a money-in-transit account, in USD, which is the currency of the invoice, yet the invoice never appears in any of the drop-downs as a choice to record a payment for. @CallieP, if this works it may be worth documenting the workaround somewhere. Working in multiple currencies in rather painful at the moment and anything you can do to ease the pain would be helpful.
How can you do this for transaction fees for payments that are received through WAVE payments, since I cannot edit or split the transaction?
Is there any way to bulk upload or bulk edit such transactions?
I get a CSV file from our payment processors where each row contains a column for the total price and a column for the fee, but I lose that information when I try to upload to Wave.
The discount and fee would not populate so did not work. I ended up manually recording full payment for the invoice and then doing a general journal entry to record the bank fee.