Automated Bookkeeping with Wave Payments

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Comments

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hey @ken_bail3y , can you send a picture of exactly which transaction you're talking about? With that further info we should be able to advise on the next best steps.

    edited May 20, 2020
  • ken_bail3yken_bail3y Member Posts: 8

    Unfortunately I dont remember what I did to correct the issue. Here are sots of two transactions related but I am not sure which one I created. It was my first and only to date payment from a client by Wave transfer. As I recall the Wave created transaction created a DR to the bank and a CR to Uncategorized. Since the The accounts receivable account was already Credited I created an account Wave transfer to credit to. I was surprised that the deposits from a Wave controlled payment were not more automated. If each Wave ACH or Creidt card payment will require additional steps I would chose not to use them. Perhaps if you explained exactly what transcations were created for an automated payment. Thanks

  • HeatherSHeatherS Member Posts: 1

    Has anyone else had the problem where their Wave Payments account (Payment in Transit) continues to show the payments from customers "in transit" holding account even AFTER the payments have processed and been deposited to my deposit account? From what I've read these should zero out automatically once the payments have been deposited to my business account, right?

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    @ken_bail3y You should see first an invoice payment transaction which marks the invoice as paid, this will be in the Wave Payments/Payments by Wave account. When your deposit hits your bank account and your bank connection pulls in the transaction to Wave, there should be another two transactions. One that says "SV9T" at the front of it which acts as a transfer to your bank account, and another transaction which acts as the other end of the transfer, ultimately moving money out of your Holding Account and into your Bank Account.

    Hey @HeatherS , this should be the case, yes. Do you have an active bank connection in Wave that pulls in transactions that hit your bank account in real life? If so, can you send me a screenshot of what the deposit transaction itself looks like when it's pulled into Wave? Let me know!

    edited May 26, 2020
  • brmcknlbrmcknl Member Posts: 2

    My chequing account reconciliation is not balancing because I accepted a credit card payment through 'Wave Payments'. If I create a new deposit to correct the difference, I can't apply the payment to the invoice because 'Wave Payments' has already done that for me. The result is that I would be overstating my revenue.

    How does one reconcile their cash chequing account when you are in receipt of Wave Payment deposits into that chequing account?

  • CalliePCallieP Member Posts: 439 admin

    Hi @brmcknl , thanks for your message. I moved your comment to this more relevant thread here.

    Every time you’re paid through Wave, you’ll see three transactions.

    1. As soon as payment is recorded, you’ll see an invoice payment transaction to your Wave Payments account.
    2. Two business days after payment is sent, the deposit transaction will be automatically imported from your bank connection.
    3. Once the bank-imported transaction is pulled in, Wave will automatically create a transfer between your Wave Payments account and your bank account. That transaction represents the movement of funds from the holding account to your bank account.

    So essentially, you just need to categorize the income transaction in your chequing account as a transfer from Wave Payments!

  • brmcknlbrmcknl Member Posts: 2

    Thanks so much - that did the trick.

  • DDCDDC Member Posts: 3

    The account still shows up as wave payments even though it went into my bank account. The transaction doesn't show up when I am trying to reconcile my account. There is no way for me to edit it and therefore I can't reconcile my account. Please help.

    edited June 11, 2020
  • ConnorMConnorM Member Posts: 1,229 ✭✭✭

    Hey @DDC! Thanks for reaching out here. When you're trying to reconcile your account, does it appear to be off by the amount of that payment? It sounds like there may have been an issue when the transactions were meant to be automatically imported into your Wave account, but I'd love to hear any further context that you have around this situation in order to give you a hand!

  • DDCDDC Member Posts: 3

    Yes, the reconciliation is off by the amount of that payment. I have attached the screenshots that show the issue.

  • BarsinBarsin Member, Moderator Posts: 2,041 ✭✭✭

    Hey @DDC

    When it comes to Wave Payments transactions, Wave is set up to automatically record the payment transaction to a clearing account, as well as create the required transfer transaction to your bank account if you have a bank account connected to import transactions automatically. This help center article will lay out the full workflow: Bookkeeping Changes to Wave Payments But I'm also going to explain it in a shorter version below.

    In short, invoice payments are categorized to the "Wave Payments" account temporarily while the payment processes. Once your bank account receives the actual deposit and the record is imported in Wave, a transfer is created from the "Wave Payments" category to your bank account category.

    If you don't have a bank connected, or if the transfer doesn't complete automatically, you'll need to create this transfer manually. This is the workflow for creating the transfer:

    1) Select the Wave Payments account from the account dropdown at the top of your transactions page.
    2) Add income
    3) match the date to one of the transactions
    4) Match the amount for one of the transactions
    5) Account should be your payments account you want the money to land in
    6) Select Deposit
    7) Under category, select Transfer to bank credit or loan > Wave Payments account

    This will create the transfer bringing down the Wave Payments account by the amount you've created
    This image below gives you a good idea of what the transfer should look like!

    image

    Don't hesitate to reach out if you need further clarification.

  • DDCDDC Member Posts: 3

    Thank you! This solved the problem.

  • BWCBWC Member Posts: 5

    Does not explain how to properly assign the payment received to the products purchased or customers identification. If this is not possible, then the payment method is counterproductive for our business.

  • ConnorMConnorM Member Posts: 1,229 ✭✭✭

    Hey @BWC! I can see that you've reached out to our Support Team and are continuing to work towards a solution together with regards to the categorization of these payments. Continuing there will be the best place to receive specific support for your particular inquiry.

  • BushmanBushman Member Posts: 1

    You are not right, the copy and paste from your explanation is incorect.

    "you’ll see it’s been split into two parts – the $10 that was paid by your customer, and the $0.59 merchant fee. The difference between these amounts, $9.41, is what will be deposited in your bank account."

    I do not get $9.41 deposited, I get crazy odd amounts deposited like for example $9.32. the bank seems to take out an extra odd few cents on every transaction.

    This actually means nothing lines up and I am finding it imposiible to do a bank reconcilliation. Everything was fine before you introduced the money in transit rubbish . now its just a mess.

    The most simple way for me to resolve this is to turn the card payment option off. That way what gets tranfered is exactly what shows up in the bank statement and it all reconciles perfectly. Only trouble with that option is my clients are inconvenienced and also you dont make any money.

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hey @Bushman , Wave doesn't automatically account for taxes in Stripe's fees as this is incredibly specific based on your region. Since you're in a region where Stripe charges tax on the processing fee, you'll need to add this manually using a Journal Transaction. To create a Journal Transaction, click on More > Add journal transaction in the upper right-hand corner of the Transactions page.

    If the tax you're recording is recoverable, the Journal Transaction should look like this:

    DEBIT Sales Tax Paid Account for the amount of the tax
    CREDIT Wave Payments/Payments by Wave clearing account for the amount of the tax

    If the tax is not recoverable, the Journal Transaction should look like this:
    DEBIT Merchant/Stripe Fee Account for the amount of the tax
    CREDIT Wave Payments/Payments by Wave clearing account for the amount of the tax

    Then, if you have your bank account set to automatically to import to Wave, make sure to categorize the incoming deposit as a transfer from the Wave Payments/Payments by Wave account.

    One last thing to note - if the tax you're paying is recoverable, make sure to add this detail to the notes of the Journal Transaction for your records. You'll also want to use the account transactions report for this Sales Tax, found by going to Reports > Account Transactions report, when filing. Because this tax has been entered manually using a Journal Transaction, it won't appear on the Sales Tax report as other transactions do.

  • Charlene_HCharlene_H Member Posts: 8

    This does not help deal with bulk payments by credit card. I cannot split the deposit. Now i have no idea how to fix it and i'm even more confused than ever.

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hey there @Charlene_H !

    For bulk payments, you can split them using the workflow outlined in this Help Center article: How to split a transaction. Essentially, when splitting a transaction, you will want all the splits to equal the transactions total amount. If the split is more or less than the transactions total amount, you won't be able to record a successful split. For your convenience, I attached an example of a successful split below:

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