Deposit on invoices showing as entire amount on P&L

TMez

I'm having trouble separating partial payments on invoices from the full invoice amount on my profit and loss sheet. In my 'sales' category, it's showing the invoice's entire amount instead of what was actually collected which is throwing my numbers off for tax time by a ton! The transaction shows the proper amount, but it is not editable because it was auto-created by Wave's system, otherwise I was going to try categorizing the deposits into a pre-payment liability account like mentioned in one of the help articles.

My business takes deposits to hold spots in the queue, then collects the balance upon project completion. In the fall of 2020, we started invoicing for the entire amount (rather than separate deposit/balance invoices) and taking partial payments to collect the correct tax amount but just recently ran into this major issue where it's showing a much higher total than what was collected.

EDIT -- I may have solved my own problem, where on the 'report type' you change it to 'cash basis (paid)' and it appears to show me what I'm looking for! Is this correct? Thank you.

AlexL

Hey @TMez , you got it! Wave is based in accrual basis accounting which means it counts the income as soon as the invoice is created. Changing the report to cash basis accounting is what you're looking for, where the income is counted when the payment is made.