Adding a Year-End Adjustment to Start Reconciliation
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Adding a Year-End Adjustment to Start Reconciliation
If you have entered transactions in previous fiscal years, but only need to reconcile this fiscal year, you can create an adjustment entry to reset your Wave balance to match your bank balance on t...
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When I do this it says "Unbalanced!" and "there was an error saving" - I tried entering both as a credit and a debit in case that's what I was doing wrong
Hi @nancyindenver , you need to have an amount on both the debit and credit side that equal each other. If they don't equal each other then the journal won't save.
My accountant followed these instructions to create the year end exchange adjustment for a USD account to agree to our year end value. However, any adjustment is automatically adding an exchange rate. We need a way to adjust year end values at 1:1. In similar software, there is a button you click indicating that we are making a year end adjustment resulting in the value remaining the same for both US and CDN. How can we do this in Wave? i.e. We created a journal entry so the US Cash on Hand would be $0 but Wave is adding an exchange rate so it looks like there is cash on hand which is incorrect.
Hey @Kia , thanks for reaching out here. I'm sorry for the issues that you've been seeing with regards to these values sitting in your account even after adding that journal entry. At present, this is something that the development team has been looking into, as long-term foreign exchange adjustments will create these entries, and they stick around indefinitely. I do hope I can provide you with better news soon, but for now, that journal entry workaround will be your best bet.
Thanks @ConnorM.
Could you clarify what you mean by the journey entry being the "best bet"? My accountant did create a journal entry to agree US cash to actuals but Wave is (incorrectly) showing a balance. Are we to do an additional journey entry to adjust Wave? Is the 2nd journal entry the workaround?
Hi @Kia! It looks like you were able to engage with our support team and this was the recommended workflow they provided:
"The first step in this method would be to create an expense category called “gains/losses on foreign exchange”. Rather than categorizing the USD and CAD as transfers you would categorize each respective half against the “gains/losses on foreign exchange” category. One half will basically be captured as income, but will be offset by the other half, which is counting as an expense.
They won’t totally zero out, but the difference will be precisely equal to the gain or loss relative to the mid market exchange for that day, i.e. it will actually allow Wave to calculate their gain or loss from the exchange. This will also ensure that the USD amounts and CAD amounts match what is on your bank statements, so things will continue to reconcile."
Did you have any success with this?
Hi @EmmaP , thanks for your explanation but I'm still a little confused how to solve the issue. I have the same problem with one of our accounts, in which the company's functional currency is TWD but the account's currency is in USD. The USD in the account has been used up but the account still shows up on reports as having a positive balance due to exchange rate fluctuations after the initial deposit, as all reports display the value in TWD. Any adjustment entry I use will either bring the USD amount to 0 or the TWD equivalent to 0, but I am having trouble getting to 0 for both.
Hi there,
I have a question on reconciliation...I recorded one invoice for example in June, but the payment was withdrawn from my account only in July, so when I do the end month reconciliation it shows the discrepancy.
What to do in this case?
Regards
Why do I have to do all of this just to see get a report for a single year. I don't want to have to crate and adjustment entry just to send a report over to my tax accountant. I just want to see the transactions and totals for a single year, I don't need the previous year to be taken into account. Not even the support team has given a good answer on this.
Hey there @JJackson
Have you tried heading to Reports > Account Transactions report (GL) > Filtering the year > And exporting at the top?