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Unable to transfer personal charges to business accounts

ken_bail3yken_bail3y Member Posts: 8

I used to be able to transfer a charge that was made on a personal card or from a personal checking acct to a business category. But lately I am only able to categorize the expense as Owners Draw. This was the same in the other direction (business charge to Personal expense). I assume this resulted from a software change. I would like to know if this it is now the case that I can no longer make these transfers to specific Personal or Business categories. And if so, when did this change take place, since I need to add previous expenses categorized as Owners Draws that are not showing up on the P/L statements.

in Accounting Technical Support

Comments

  • EmmaPEmmaP Member Posts: 639 ✭✭✭

    Hi @ken_bail3y! Thanks for reaching out here. You are correct, we have changed the way that you account for personal spending in your business in the updated version.

    The same categorization function still exists, it is just a few clicks away. To categorize transactions as personal spending from your business, or personal investment into your business, you can choose "Personal Expense or Withdrawal" or "Deposit from Personal" when you’re categorizing. You can learn more about how this works here: https://support.waveapps.com/hc/en-us/articles/360020168332-An-easier-way-to-manage-personal-transactions

    In the old version, we gave you an option to "Move to Personal" or "Move to Business." When you moved a personal expense made with business funds from your Business to your Personal account, this tool did two things:

    1. In your Business, Wave categorized this transaction to the Owner Investment/Drawing account. On the Transactions page, this was shown as categorized "To Personal."

    2. Wave created a new transaction in your Personal Wave business. This transaction could be categorized, but was shown as coming from the Business' payment account. In the background, Wave actually selected the payment account as a hidden Equity account within your Personal Wave business.

    When you moved a business expense made with personal funds from your Personal Wave business to your Business, this tool did two things:

    1. In your Personal Wave business, Wave categorized this transaction to a hidden Equity account. On your Personal Wave business Transactions page, this was shown as categorized "To Business."

    2. Wave created a new transaction in your Business. This transaction could be categorized, but was shown as coming from the payment account in your Personal Wave business. In the background, Wave actually selected the Owner Investment/Drawing account as the payment account.

    Now that your account has been updated, you'll see that we've removed the language layer. You'll see any transactions that were "Moved to" are now clearly shown as categorized to or from the Owner Investment/Drawing account.

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