Categorizing a Transaction

Step 1: Open the Transaction
Step 2: Determine the nature of the transaction
Step 3: Select the Transaction Type
Step 4: Fill out the qualifying transaction details
Step 5: Success!

Step 1: Open the Transaction

  1. Click on the Transactions tab and open your list of transactions
  2. On the top tool-bar, Bitwave provides the following filters for transaction history:
    a. Wallet
    b. Reconciliation Status
    c. Categorization Status
    d. Ignored
    e. Date
  3. Click on the Categorize button for the transaction that you want to categorize
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Step 2: Determine the nature of the transaction

  1. Bitwave will generate a preview of the transaction type under the Type column
    a. Inbound
    b. Outbound
    c. Contract Execution
    d. Trade
    e. Transfer
  2. When viewing the transaction, we populate a hyper-link under the Id column that allows you to open/view your transaction on a Blockchain explorer
    a. This will give you additional insight into the transaction, such as:
    i. Status
    ii. Block #
    iii. To/From Addresses
    iv. Value
    v. Transaction Fee
    vi. Approximate price of assets at time of transaction
    vii. Input Data

Step 3: Select the Transaction Type

  1. Once you have opened the transaction, you will have to select the correct transaction type from the drop-down

    1. Bitwave allows you to categorize the transaction as the following types:

      i. Simple
      1. Regular transaction that is usually an incoming or outgoing transaction
      ii. Account Transfer
      1. Transfer of assets between bank accounts, exchange accounts, or wallets
      iii. Detailed
      1. Categorize individual asset for a particular transaction
      iv. Invoice/Bill Payment
      1. Paying for or receiving payment for an invoice or bill payment
      vi. DeFi
      1. Decentralized finance activity, such as vault deposits, staking, liquidity pools, etc.
      vii. Trade
      1. Conducting a trade, such as purchasing/selling assets or derivatives, on a centralized (CEX) or de-centralized (DEX) exchange

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Step 4: Fill out the qualifying transaction details

  1. In order to categorize a transaction, you will need to fill out the following details:
    a. Category
    a. This is a line item that is pulled from your ERP software or created in Bitwave
    a. Examples of categories include expense, revenue, equity, liability, asset, and bank accounts
    b. To create one manually in Bitwave, follow these steps:
    a. Go to Company tab > Categories > Create Category
    b. You will need to assign an unique Remote ID for our system to recognize the account number
    a. Most customers follow a number system that mirrors their chart of accounts.

    b. Contact
    a. This is pulled from your ERP software or created in Bitwave
    a. Examples of contacts include customers and vendors
    b. You will need to have contacts for each of the Blockchains that you are paying transaction fees for
    c. To create one manually in Bitwave, follow these steps:
    a. Go to Company tab > Contacts > Create Contact
    b. You will need to assign an unique Remote ID for our system to recognize the account number.

    c. Fee Network
    a. This is the Blockchain that you are paying fees for transacting in, such as gas fees in Ethereum
    b. You will need to have a Contact created with the Blockhain name in your ERP software or on Bitwave

Step 5: Success!

Congratulations! You have just categorized a transaction on Bitwave. If you have any questions, don't hesitate to reach out.