Accounting for discrepancies in payment resulting from bank transfer fees or currency conversion

SailorGirl

Hello,
I'm a new user and still finding my way around Wave and am very much an accounting novice.
However, I've come up against a problem when receiving payments from clients. I work with clients in my home country, a eurozone member, but also around the world. I ask all of my clients to make bank transfer payments to my bank in euros.
For the moment I haven't connected my bank account with Wave. I simply create invoices, download them in PDF and send them to clients via email. I'm having an issue when it comes to recording payments.
I invoiced a company in the UAE for the amount of 219 euros. I received a payment by bank transfer of 210.83 euros from said company. While I see that my bank has not charged me fees for the transfer, I believe that the discrepancy in the figure is due to a bank transfer fee of 8.17 euros charged on their end.
Now, whether my client's bank deducts a bank transfer fee before payment - which I believe is the case here - or my bank charges me a bank transfer fee, which it normally does (usually three euros), the amount I will be paid will always be less than I invoiced. In this case, I now see that an overdue invoice of 8.17 euros has been automatically created and appears in my sales invoices. How do I deduct bank transfer fees and currency exchange discrepancies from payments so that the invoice is recorded as paid?
Thanks in advance

phild

great question. this is a common problem but I dont see any solution?

JamieD

Hey @phild. I've gotten some feedback from one of my colleagues on how to accomplish this in Wave, and hopefully these instructions provide further insight:

1. Set up a holding account in your base currency
2. Record gross payment of the invoice (directly on the invoice) to the holding account, adjusting the exchange amount on the invoices page so that the Wave amount matches the actual gross amount before fees.
3. Record an expense transaction for the fees in the holding account.
4. Use the bank-imported transaction to create a transfer from holding to bank.

Please let me know if this helps, and if you have any further questions, don't hesitate to reach out.