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How do I handle a transaction (income) received in mixed currency?
Therese
Member Posts: 17
We are based in Myanmar and operate a small Guest House. We are new to Wave and have just started adding transactions. Yesterday a guest settled his bill (cash) but he paid part in US$ and the balance in Myanmar Kyats (MMK) How do I process this? It seems I can choose only one account per transaction. Thanks for any ideas! Therese
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Hi @Therese ! Welcome to Wave.
We'd be happy to walk through this with you but want to gather a few more details first: did you receive this payment towards an invoice?
Hi Charlotte, thanks for getting back to me. No, we didn't write an invoice. As our guests visit one time only, we don't create a customer/invoice, but go directly to transactions in the accounting tab and click "add income" - as explained in the "getting started" video in the help section. So it occasionally happens, that guests will pay part of their bill in local MM Kyats and the balance either in US$ (cash) or via credit card. In transactions we split their bill into various categories - lodging, restaurant, excursions etc. Thanks for your help - look forward to hearing back from you. Therese
Hi @Therese.
Since you're not recording payments for invoices, you'll simply have to create a second Cash on hand account in USD. I'd recommend calling it "Cash On Hand (USD)" just to clearly differentiate it from your MMK cash account. When you receive cash payments in USD, you'll be able to record them as USD income to that account.
When you exchange that money at your bank and deposit it to your account, you'll record a transfer from Cash On Hand (USD) to your bank account. Wave automatically calculates the exchange rate. We use the daily mid-market rates from xe.com, if you're curious.
Hi Alexia, thanks for getting back to me. I have attached a screenshot of the transaction tab - edit transaction. The problem is not creating other accounts for different currencies - we have already created for example a Euro cash on hand account - but HOW to split one transaction into two currencies. We quote our prices in US$ but some guests pay part in $ part in kyats, or part in kyats and balance via credit card (bank account) - so for one "add income" transaction I would need to be able to add a second account, just as I can split the total into categories such as lodging and drinks. I hope you understand my problem. Thanks. Therese
Hi @Therese.
Transactions from different accounts need to be accounted for separately, so in this case, you will have to enter it manually as two separate transactions.
Hi @Therese.
I'm saying that you'll have to treat them as separate transactions, you won't be able to take a single transaction and split it two ways between accounts that don't share a currency.
In this case, you'll have to make one income transaction for the amount in USD, into your USD cash account, and another one in MMK, into your MMK cash account. You can split those into categories as required afterwards, but they cannot be combined.
Let me know if you have any more questions, I'd love to help.