Wave Is Converting A Positive Dollar Balance To A Negative Home Currence Balance

Anne

Hi Wave,
Trust the person handing this account is doing great.
I would like to report some errors on my accounts.

On my Dollar accounts, I seem to have a negative Rwanda currency when converted but a positive dollar currency on Wave.

This first occurred on my US$ Dom. Acct on 15th May 2020, I reached out on Facebook to lay the complaint August 26th but I was directed here, hence nothing was done because I did not know how to navigate the wave community web page.
I am currently having a negative Rwanda franc balance due to wave conversion with a positive dollar balance on the same account.
I need to rectify this so that the external auditors who are to audit my account using the Rwanda Franc won't think I overdrew my account, which I did not.

I need someone from Wave Super Support Team, as called by the person I chatted with on Facebook to reach out to me and help me handle this matter.

I would appreciate if the help can come as soon as possible because my Audit exercise comes up on Monday morning, please and thanks in anticipation.

Best regards.
Anne
For; CO-CREATION HUB LIMITED

AlexL

Hi @Anne , can you provide us with some screenshots of the report where you're seeing this balance? Also, what's the currency exchange rate that Wave is displaying for some of these transactions that contribute to the balance?

Let me know!

Anne

Thanks, Alex for responding.
I really don't understand what is happening with the account.
As at December 19th 2020, which was the last transaction entry on this account I am sharing with you (all other dollar account are having this same error/issue), the exchange rate for the entry is $1 to 947.832625rf but the balance as of the same date has an exchange conversion of $1 to 799.675063rf. (See Image C - green highlight on image)

Looking thoroughly at the dollar accounts, I noticed that this happened to them all. The entry exchange rate is different from the balance rate.

As you can see on Image A and B, I currently have a dollar balance of $2074.89.
On same image A and B, you can see the ending balance to be same $2074.89 but two different rwanda franc.

This shows that something is wrong here.
Image B was snipped and saved on the 24th of October 2020. (Blue highlight on image)
Image A was snipped and saved today 27th of October 2020. (Yellow highlight on image)

The balances should not be changing, this is very detrimental to audits and opening balances.

Please see images attached for references, thank you. I hope to get a solution.
Best regards,
Anne.

Anne

Hi @AlexL
Trust you are well.

I have responded to your comments but I have not gotten a response.
Please respond and help. Thanks.

Barsin

Hey @Anne

When a foreign currency bank account reaches a zero balance in the foreign currency, there is usually a home currency balance in the account, due to foreign exchange rate fluctuations over time as transactions are recorded. If you zero out the balance in the business currency by creating a journal entry (the other side is gain/loss on foreign exchange), Wave calculates a corresponding foreign currency amount which is then recorded into the balance of the account. This means that ultimately, either the account will show a business currency balance (which is a 'phantom' account balance on the balance sheet), or the account will hold a foreign currency balance (which doesn't appear on the balance sheet, but then the bank account can't be reconciled as there is a 'phantom' transaction in the foreign currency).

We're working to make it possible for you to be able to update the business currency balance of a foreign currency bank account without also creating a foreign currency transaction amount. This would prevent your balance sheet and/or the account to have a phantom amount.

A workaround is to create a related functional/home currency “valuation” asset account, where you can make entries in the functional currency only, so the net of the valuation account and the bank account will be correct. We're working on automating this process, but in the meantime, this must be manually done by you. If you have further questions on the accounting principles of this, please reach out to an accountant. The valuation account would need to be the same account type as the account which needs to be balanced. So if it's an asset account you're looking to revaluate, you can create an asset valuation account. Picture it like a placeholder account here you can store the balance away from your actual account. This is definitely a workaround and we appreciate your patience until we eventually give the option to change currencies in Wave.

Wave is currently building a transaction rewrite which will, in its final phase, include the tools needed to reconcile these ghost amounts. I don't have an ETA for this launch, but I can say that it is the current primary focus of the accounting product team. Thank you for your patience while we build this feature out to completion.