How to Categorize Transactions Through 3rd Party Foreign Exchange Service

johnt

I use a couple different 3rd party forex services. The flow usually goes like this:

1. Wire US$ from my corporation's US$ checking account to Forex account
2. Exchange US$ for CA$
3. Electronically transfer the CA$ to my corporation's CA$ checking account

I don't know how to correctly categorize the withdrawals and deposit or where and how to capture forex gain/loss,

ChelseaK

@johnt I'm thinking what you could do here is calculate the forex gain when you converted from US to CA$. Then, when you transfer the CA$ money to your Canadian checking account (and this deposit transaction records in Wave), you can split the transaction so you can categorize one of the splits as a 'Gain on Foreign Exchange'. For example, if you gained $50 converting $100 USD > CAD, you would categorize $100 as (X) and then $50 as 'Gain on Foreign Exchange'.

For more context on how Foreign Exchange transactions work in Wave, you can check out our Help Centre article on Accounting for Foreign Currency Transactions here: https://support.waveapps.com/hc/en-us/articles/208624186-Accounting-for-foreign-currency-transactions