Foreign currency account balances on reports
In your reports, the balance of your foreign currency account may not match the value you expect when using the current exchange rate. This is because Wave calculates your business currency balance as the sum of each transaction. This means the balance changes as historical rates fluctuate.
In your Account Transactions (General Ledger) report, a foreign currency account looks like this:
The balances of both currencies are the running totals of the starting balance plus or minus the individual transaction amounts. Since the exchange rate for each transaction depends on its source, there may be a difference between the account balance in your reports and the current translated value.
When you reconcile a foreign currency account, the balance and transactions are in the foreign currency. When you enter the ending balance, it must also be in the foreign currency.
To adjust the balance of the foreign or business currency account so that the translated foreign currency balance matches the business currency balance, the account needs a revaluation. To request this, Open Mave, Wave’s automated chatbot, and request a Support Agent. Provide the name of the account and the date you need the account to be at zero.
For advice on your specific foreign currency transactions, consult your accountant or tax preparer.