'Fee Refund' from Wise - how to record in Crunch?

ChrisWalker

I’ve received a ‘fee refund’ into my Wise Business Account. Wise have decided to return some of the charges for currency exchange back to customers, so I’ve received a one-off deposit into my account.

How should this be recorded in my Crunch account?

‘Bank Deposits’? ‘Interest Received’? Or something else?

Thanks!

AlexandraMoore

Hi Chris,

It’s likely that you’ll need to record this as a refund from your supplier. You can check out how to do this in our article How to add an expense refund https://help.crunchfree.co.uk/s/article/How-to-record-an-expense-refund
If the amount you’ve received back is greater than the expense, please let us know and we can advise on an alternative.

ChrisWalker

Thanks Alexandra. Whilst the refund is only a small amount, unfortunately I can’t follow this video, as it’s not recorded as an ‘Expense’ in the first place. My workflow is this (as advised by your accountants when I purchased an ‘Ask an accountant’ session):

1) I get paid by my client in USD.
2) I convert the USD to GBP in Wise.
3) I record the GBP amount on the invoice in Crunch. This already factors in the exchange rate and any fee that Wise charges me for the conversion. So the amount I record on the Crunch invoice is whatever I’m ‘left with’ after currency conversion and being charged a fee by Wise.

So I guess I need another way of recording this refund?

Many thanks,
Chris

AlexandraMoore

Hi Chris,

Thanks for providing us with the breakdown, this makes it much clearer to advise on!

The best way to record this would indeed be ‘Interest Received’, however, please make sure you enter something like “Refund - Wise currency exchange” into the ‘Reference’ field.

ChrisWalker

Many thanks Alexandra. I’ve recorded it as ‘Interest Received’ and entered an appropriate description in the ‘Reference’ field.

Thanks!
Chris

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