US$ invoicing converting to Canadian
Panama
Member Posts: 1
Hello all,
I have several clients that I invoice in USD.
I note the payment in Wave and it does the conversion to Canadian income based on the exchange rate Wave uses for that day. However, when I deposit my client's cheques at the bank, often a few days later, I obtain a receipt for the actual exchange rate I got when the funds were deposited into my bank account.
I can go back into the Wave invoice and change the exchange rate to what I actually received at the bank, however, when I then go to Invoices to view all past paid invoices it is still showing that I earned the exchange calculated at Wave's rate and not the actual exchange rate I received at the bank.
End result is my reports are showing more income than I actually earned.
Any idea how to fix this? And I'm wondering, does it have something to do with the fact that I have already sent a receipt to the client?
As Wave does not respond well to service requests I am hoping someone here can help me out.
Thanks!
Comments
@Panama Just wanted to let you know I've reached out to my team to look into this. I'll follow-up when I have further insight for you
Hey @Panama . Let me see if I can get this straightened out for you.
Because CAD is your base currency, the numbers that appear in your Reports page will always appear in CAD with the exchange applied.
Additionally, Wave accounts for things on an accrual basis. This means that the income is incurred in USD on date of invoice creation, rather than the date the payment is made.
This also means that there will always be a discrepancy between the amount of CAD income recorded for an invoice, and the payment there there is no fluctuation in currency between the creating and payment dates (incredibly unlikely). Keep in mind though that these changes are automatically accounted for in your Reports as "Gain/Loss on Foreign exchange".