When you move money between two accounts in different currencies, you’re doing two things: exchanging the currency, and then depositing that currency into the other account. This transaction has a few moving parts, which your bank does behind the scenes, and Wave can bookkeep for you.
Let’s say that you’re moving money from your Canadian checking account to your US checking account, and you have both of these accounts linked to Wave to import transactions automatically. When you send the money to the US bank account you’ll see money leave the Canadian checking account, and come into your US checking account. These two amounts aren’t the same, since they’re not in the same currency. Once both of the transactions have been imported into Wave, follow the steps below.
- On the left navigation menu, click Accounting > Transactions.
- Locate one side of the transfer. In this example, if you locate the USD transaction or the income transaction where you received funds into the US account, categorize it as Transfer from Bank, Credit Card, or Loan, then select the account with the matching transaction in the drop-down menu.
Wave automatically categorizes the other end of the transfer under the Canadian account and the category will now reflect as Transfer to the account.
If you’re creating these transfers manually, Wave will calculate the second half of the transfer based on the current mid-market rate pulled from xe.com. If necessary you can edit the amount of the second half of the transfer transaction to reflect the actual amount that landed in your bank account, and you’re done. Learn more about creating transfers in How to create a transfer between two accounts.