Credit card payments as transfers and split transactions
LV99
Member Posts: 5
I am new to Wave - I think I get how to do transfers for credit card payments, although I am confused by consistently seeing two identical-looking transactions to match with the transfer. But when I try to do a split transaction in the transfer I get 2 and 3 listings of the transfer in accounting. What do I do with the two matches offered in transfers. Where do I do the split transactions for the credit card payment? In the credit card entries in accounting?
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I need help with this too. I'm new to Wave, and accounting is new to me too. I have a newish business and trying to put all transactions from last year into Wave so that I'll have an accurate ongoing accounting. I know that initial expenses that I put on my personal credit card when getting set up I can label as owner investment. I'm wondering how to enter details of purchases with my business credit card now. I have imported my bank account and credit card account, but I was hoping to be able to categorize the credit card purchases. I'm trying to understand the transfer function so that things don't get counted twice.
Since I wrote the above, I discovered once I setting up my credit card to sync with Wave it automatically splits the transactions. After setting up the categories for private accounting and business accounting in Chart of Accounts all I needed to do was assign the categories for each spit transaction. So happy with this feature. Still working on the transfer function, but getting more details set up in Chart of Accounts helped a lot.
Hey there @LV99 and @TracyLAR !
It looks like you may have figured out some of the steps in this process (happy to hear that) but I will gladly shed some light on this.
If you haven't already checked out our Transfers in Wave article, I would recommend taking a look at as it has some handy info. If you're moving money from one account to another (like a credit card payment for example), your transfer should look like this:
This shows the two transfers, one is green which is money in to my credit card account showing a payment to it, and one is black, money out of my business checking showing a payment from that account. These are the two transaction details below.
To perform this action, choose your Category as Transfer from Bank, Credit Card, or Loan, then select the proper account from which the funds should be connected to.
Also, if you need some guidance when splitting transactions, this Help Center article can come in handy as well: How to split a transaction. If you have any other questions, please let me know and I will gladly assist you further.
Julian - Thanks for your help. So there should only be 2 entries per transfer transaction. What should I do when a third entry appears for the same transfer transaction? Thanks.
Hey @LV99 , if the one side of the transfer that you're categorizing can't find the other side to automatically connect to, it will create the other side for you. I've seen this cause some confusion before.
If you have three transactions, figure out which two are the exact same and merge them together. As Julian mentioned, you want two transactions at the end of the process.