Foreign currency invoices and bills

If your business issues invoices or makes purchases in a foreign currency, Wave will automatically keep track of how these values convert to your business currency to keep your bookkeeping accurate.

Create an invoice

Record a payment on the invoice

Create a bill

Record a payment on the bill

Create an invoice

      1. On the left-side menu, select Sales & Payments > Invoices, then click Create an invoice.
      2. Add a customer, change the date or due date if applicable, add the line items, and include any discounts as needed.
      3. Next to the Total at the bottom of the invoice, change the currency type to reflect the currency you will be receiving. A currency conversion line will appear showing the current approximate conversion rate and the new cost of the invoice in that currency.
      4. Click Save.

This approximate currency exchange is called the Unrealized Gain or Loss. When you anticipate that you’ll be exchanging a foreign currency at a future date, Wave keeps track of the fluctuation in the exchange rates for you.

When you approve the invoice, the bookkeeping reflects the expected currency conversion rate on the date that the invoice was created. If you look at your Balance Sheet, an automated entry is created as an Unrealized Gain on Foreign Exchange if the exchange rate is higher than it was on the day the invoice was created, or an Unrealized Loss on Foreign Exchange if the exchange rate is lower than the day the invoice was created.

Record a payment on an invoice

You need to record foreign currency payments directly on the invoice, they cannot be marked as paid from the Transactions page. If a bank connection has imported these transactions, record the payment on the invoice, then merge the manual payment and the bank import. Learn to merge transactions in Merge or unmerge transactions.

When receiving a payment from a customer in another currency, complete the deposit at your bank to know how much money is actually being exchanged. When you're ready to record a payment on the invoice:

      1. On the left-side menu, select Sales & Payments > Invoices, and locate this invoice.
      2. Click Record payment.
      3. Record the date, amount paid, method of payment, and the bank account the funds were deposited. An exchange rate and a converted amount will appear to show the current conversion approximation and the amount received.
      4. Edit the exchange rate to the rate received at the bank.
      5. Click Save.

Create a bill

When you receive a bill from a contractor, enter the bill into Wave to keep track of your expenses.

      1. On the left-side menu, select Purchases > Bills, then click Create a bill.
      2. Add the vendor and due date, change the currency to the currency on the bill, and add the items.
      3. Wave calculates the exchange rate, as well as the total approximate amount owed in the foreign currency.
      4. Click Save.

Record a payment on the bill

Foreign currency payments can only be recorded as paid directly on the bill, they cannot be recorded as paid from the Transactions page. If you have imported your transactions, record the payment on the bill, then merge the duplicate transactions. Learn to merge transactions in Merge or unmerge transactions.

Make sure to complete the real-world payment before recording the payment in Wave for accurate exchange rates.

      1. On the left-side menu, click Purchases > Bills, then click Record a payment to the right of the bill.
      2. Select the method of payment used, the amount paid, and the account the funds were withdrawn from.
      3. Edit the exchange rate to match the rate from your bank at the time of your payment.
      4. Click Save.

The difference between the amount of the bill on the day that you created it and the day that you paid it is the realized gain or loss on foreign exchange. Track the gain or loss on foreign exchange payments on the Reports > Profit and Loss statement.