Debits & Credits Seem Backwards
kirstyn
Member Posts: 2
Odd issue that I've already submitted a ticket on. For the past few months it seems that all debits in my business checking account show up as credits to the account and all the deposits show up as debits. It's very strange that both the automatic import from my bank and the payments from invoice sourced from Wave show this issue.
Specific example. Someone cashes a check I wrote. In my bank it shows as a debit of $xxx, but in Wave it shows as a credit of $xxx.
And
Someone pays an invoice within Wave to me of $yyy. It shows as a debit of $yyy in wave but a credit of $yyy in my online checking account.
This obviously poses a problem when I try and reconcile and try and get my FY18 taxes complete. Has anyone seen this before? Help!
0
Comments
Clarification. This is dealing specifically with the business checking account. Not AP or AR.
Are you importing transactions or is Wave connected? If you are importing (which I have done for clients) sometimes I've had to run a quick formula to convert the negatives to positive and vice versa before import.
Mike G, CPA
www.mgfinancial.net
Better Service - Better Pricing
I have the same issue with my accounts. The debits and credits are backward. I have both my checking account and my credit card connected electronically. It all balances it out in the end, but it looks backward. It did not have a negative impact on my Profit and Loss report. Income shows as it should, as do expenses. But, it is a little confusing that it shows that way in the transaction view. Is there a fix in the works?
Hi @kirstyn and @BernieB ! Based on what you've said (that things look correct in your reporting) everything is as it should be now. To clarify,
For asset accounts, like bank like checking or savings bank accounts, deposits are debits. Withdrawals are credits. For liability accounts, like loans or credit cards, received payments (transactions paying off your credit card, for example) are debits. Expenses/purchases are credits.
If you'd like to learn more, I'd recommend checking out a resource like this one. (unaffiliated, but very helpful!).
How do you run a "quick formula" to convert the negative to the positive and vice versa?
@toothpix,
Example
Columns
A________B
12.50 -A1 (COPY DOWN)
17.57
You do a minus sign and point to column. Then copy that formula down. So in the above the 12.50 would be converted to -12.50. If I copied it down the 17.57 would also convert to -17.57.
After you are done. Highlight the column with the formulas, copy and paste the same data except paste as values. That removes the formula and leaves the value.
@Mikeg - thank you this was super helpful! I was able to import my credit card statements and now the credits show up as credits and deposits as deposits instead of vice versa! Much appreciated.