Merge Transactions between Wave Payments and Bank account with different currencies

whidzee

Hello, I've seen in the video tutorials how I can receive a payment and put it into the Wave Payments account. Then once the funds make it's way to my bank account I can merge them so the money isn't counted twice. How do I do this merge if it's in a different currency? eg I get paid in USD to my PayPal account. and then I want to transfer it to my bank account in CAD. How do I handle the loss due to conversion fees?

Also PayPal takes all my sales for one day and puts them together and deposits them all into my account in one go. Am I able to bundle together the wave payments entries into the lump sum payment that PayPal sends me?

Barsin

Hey there @whidzee

Thanks for your patience with this reply.

I do regret to inform you that Wave isn't exactly designed for this type of cross currency integration with PayPal and will likely not reconcile with your invoices. Your cross currency transactions won't merge, however in the real world, this is likely something you won't want to merge as these transactions aren't identical since they come from different currencies.

The Wave Payments account is designed for our in-house payment process called Wave payments. It creates a holding account for the funds to be deposited into.

1. Invoice is paid, transaction lands in your Wave payments holding account
2. Once the payment actually lands in your bank account two days later, a transaction expense transaction debits the Wave payments holding account, and credits the business checking account
3. The business checking account is then credited for that amount.

These are the three transactions that will appear on a Wave payments.

When it comes to PayPal however, the bookkeeping is a bit different, especially for cross currency, and especially when your deposits by PayPal are in one lump sum.

Essentially you'll need to use the split deposit to account for any fees, although each loss on your individual invoice would need it's own journal transaction debiting the asset account and crediting the foreign losses account.

This is a bit more complex and I'd verify this with a CPA for accuracy!