How to split a transaction
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How to split a transaction
If you made one lump sum payment for a number of items that belong in different categories, or if a customer paid you a single check to cover several invoices, you'll need to split the transaction ...
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Season greetings! Would this above procedure also apply when a customers has paid more than one invoice with a single amount? If not what would be the correct way of capturing the payment to multiple invoices?
Great question @hennie! It would if the customer paid outside of Wave, and you marked the invoice as paid manually this would be the most direct route. If this isn't the case, we have an article going over ways of accounting for overpayment. This goes over the process in each scenario a little more thoroughly. Hope you have a Happy Holiday!
Hi!
How do you split a receipt into both a receipt and an expense.
e.g. received $400; but it should be $500 rental; $100 expense that the tenant paid on our behalf; the tenant just netted both and paid us $400.
So once you have split the income into the appropriate transactions, how do you merge the individual transactions with the matching invoice? This process seems more complicated than the old system but maybe I am missing an obvious step. Thanks for your help in advance.
I am having the same issue as fishermansdaughter_1. It used to be easy to split and you would end up with 2 separate entries for the same deposited check. Then you could right click and "create invoice payment" all at once to avoid doubles. Now when you split it doesn't actually create 2 entries., so you cant link it to an invoice payment via Merge since the amounts aren't equal. Am I missing something?
@fishermansdaughter_1 @Spencer_Machine In the updated version of Wave, splitting transactions are ideal for categorizing parts of the deposit or income. Once split, the transactions are essentially nestled with the original transaction. This decision was made to ensure that your transactions in Wave match what would be on your bank statement, which will make reconciling your accounts far easier than in the past. I do acknowledge that this loses the functionality to merge transactions in the same way that you had in the past, however, many users have found that this change has increased their ability to reconcile their accounts more quickly and more accurately. If you are looking to have 2 transactions that can be merged (among other actions), then the best way would be to create two separate transactions and delete the transaction that would have been used to split.
Thanks for your comments Jordon. My recent deposit that was received had 8 separate invoices as part of the deposit. I then split the single deposit to reflect the 8 different invoice amounts. If I then just mark the deposit and the 8 separate invoices as "reviewed" will my various reports that I will want to eventually print show me the separate invoice amounts even if there was no merging process? Thanks for your help in advance.
I'm sorry, but I'm lost with this new method. If I receive payment for an invoice, then deposit that check into my bank account on its own, I can then merge the two transactions like we did the old way. If I make a bank deposit consisting of multiple invoices paid, I can no longer merge, even after I split the bank deposit and I'm left with double income. What am I missing here?
@fishermansdaughter_1 yes, you would see separate entries in your reports for each invoice!
Hi there, on the previous version of Wave, I was able to split a payment in the transaction menu to mulitiple invoices, including negative invoices. On the new version, my negative amount invoices do not show up in the dropdown. Why would such a function change so drastically? For example, I currently have a payment that needs to be split to apply to 9 positive amount invoices and 5 negative amount invoices. Any help would be greatly appreciated.
How come I can no longer split a transaction into both income and expense components? This worked great in the previous version, but there doesn't seem to be a way to do this anymore. I often have deposits where expenses are taken out. To workaround this change to the split function, I now have to edit the amount of the imported deposit to increase it by the expense and then create a separate transaction for the expense. This creates a bunch extra work and introduces more chances of error.
In the new system, if you split a transaction (in your case, a deposit for multiple checks), you cannot merge a line-item from the split (one of your payments) with an entire different transaction (the payment you recorded on the invoice).
I would recommend that you create separate transactions for each of your check deposits, and merge those with your recorded invoice payments. Then delete the transaction that came in for the multiple-check deposit.
@jermg77 Another option would be to delete your individually recorded invoice payments, then after you split the bank deposit transaction into multiple line-items, you can categorize each line-item as an invoice payment. From the category picker in the line-item, select "Payment received for an invoice in Wave", then choose the corresponding invoice that the check is for.
I need to split a transaction into income and expense. There has got to be a way other than 'discounts and fees' to put a negative amount in a deposit. My problem is that my group spent cash from a concessions box on pizza. The net amount was deposited. But in order to account for it properly and record the food expense, I need to be able to split the transaction. Can anyone help?
I am so confused with how to split transactions now. I don't know if you could have made this feature more difficult?
Is there anyway to revert back to the old wave platform? I am finding this new system not user friendly at all. Maybe an experienced accountant or bookkeeper would have no problem with it but from what I can tell that is not your client base. It seems to of been overlooked that your client base is small business owners.
Same question as Laurie below: How do I split a single transaction into income and expenses?
I'm struggling with is new concept.
I get paid by check often and record the individual check numbers in the notes section of the transactions. With the old system, I used the merge feature to connect the original check transaction log with the deposit log. It worked well to reconcile. However, with the new system, when I deposit multiple checks in a single bank deposit, if i split the transaction I can't capture the check numbers and associate with the specific part of the split; there's only one "notes" field for the grouped deposit. Therefore I'm lead to believe that I need to delete the bank deposit transaction and just keep the original check entries to work in the new system. Is this correct?
Furthermore, I'm not sure how to handle expenses. I have multiple business expenses that are recorded (yet unverified) however I used my personal accounts to pay for them. At the end of the year, I tally up the expenses and write myself a check from my business to personal so that I've actually used the business for the purchase. My initial instinct is that I simply delete the end-of-year check transaction log, then change all the relevant expense transactions to come from my business checking, and then verify. That said, I'm leery of doing this because then I have no record of the end-of-year check in the transaction log. Do you have any suggestions on the best way to approach this?
I've been using Wave (along with my wife) for two business for the past few years and it has worked well. We greatly appreciate the updates and you working to make Wave even better but with the new updates, it has really made us have to redefine our accounting workflow. I'm really not sure if it's for the better. The whole point of an accounting system, from my understanding, is to capture every transaction detail and to be able to account for it. Maybe I'm missing something, but if I'm now having to delete relevant transactions just to make it reconcile, it doesn't seem helpful for truly being able to track where money is coming and going. Lastly, if you need to create a "hack" just to make a workaround the system, I question both the proposed solution and the nature of the system's design.
I'm happy to learn a new system but some more guidance on this split-transaction and lack-of-merging would be greatly appreciated. From reading this thread it seems that I'm not the only one experiencing growing pains with the new system. I think a few of us would be very happy if theses Wave features came back.
Thanks for any additional help you can give us.
I have already written to you to express my great upset over this upgrade. I regularly make a bank deposit that I then split. The first stage was to write a new description for each line and the amount. The category would duplicate if I entered at the top level. Once split I would go and enter the customer. What I am faced with now is no ability to have a separate description for each element - HORROR. Revert in total or allow some users to switch back. The new system sucks.
Ditto on splitting into income and expense. When using an outside payment platform, the merchant account fees are deducted from the total when the money is sent to the bank. We used to split the bank total after import into the full invoice amount and the merchant account fees. This process worked great, but now is completely broken.
Same question. Can you please provide a solution on how to split a deposit between income and expense?
@kgantt when you're splitting a bulk deposit from a third party processor (say, PayPal), here's what you do. I'll use a total payment of $100 towards an invoice, with a $3 processing fee, as an example.
Use the transaction splitting tool to make the first split part of the transaction, categorizing the bulk payment amount of $100 as payment for invoice x in Wave.
In the second line of the split, click the category dropdown menu > Discounts and Fees > Merchant Account Fees (or a specific one for PayPal fees, which you'd need to create on your own in the Chart of Accounts page).
This will change the positive to a negative sign in the split line, where you enter the $3. This will balance out the net of $97, while also recognizing that the invoice total was paid, while also recognizing the processing fee. Click Save, and you're good to go.
Once you've saved this, it'll still display as a single item line; however, when you click into the transaction itself, it'll show you that it's split between multiple accounts.
@Delph since you sounded like you were in agreement, then I hope this helps you too; if it doesn't please don't hesitate to clarify.
Thank you Ryan. I think i had tried this, but then the paypal fees appeared as a decrease in revenue, not as an expense. I would like them to be classified under bank services expenses.
What i ended doing is using the duplicate fonction instead of splitting...
Hello - I had a customer pay one invoice by wave (for 4 invoices). The money came in through 'payments by wave' 'Wave MSP' -how do I allocate the lumpsum payment to each of the 4 invoices if it was paid by wave?
Hey @aj2468! So you have a few options here, you can refund the payment to your customer and have them pay each invoice individually.
Or you can edit the amounts on each of the invoices that are still unpaid to show $0 this will in turn change the status of these invoices to paid! I hope this helps
thanks @Zoe_caff1 - I've tried what you suggested: adding a manual payment to the two remaining invoices (that have been paid via lumpsum) to zero, however even with an applied zero payment, it still shows unpaid. Any other work-around so I don't have to bother my client? thanks!
Hey @aj2468, I think our wires may have gotten crossed a little bit here, sorry for not explaining more clearly! When I said edit the amount on the invoices I meant actually adjusting the value of the invoice to $0. In doing this the invoice will change from unpaid to paid, because if the invoice is for $0, then $0 is owing!
You may also be interested in have a read through this help centre article which also has a work around for these situations!
@Ryan_W Thank you! I couldn't find the merchant account fees option before because I didn't look under the "Discounts & Fees" section.
Hi!
This seems to be a recurring comment from users. How do you split a receipt into both a receipt and an expense.
e.g. received $400; but it should be $500 rental; $100 expense that the tenant paid on our behalf; the tenant just netted both and paid us $400.
There needs to be a functionality in the split deposit option of adding a expense category which would subtract an amount.
Thanks
@shaneil_n Our receipts product doesn't pick up income transactions as it's designed to only create expenses. If you want to split the transaction and add a negative amount, you can select the Discounts & Fees categorization for the second line item which does include a negative in the transaction. It's not an expense category but will still allow you to subtract an amount from the total deposit.
Is it possible to split a transaction in the Receipts by Wave Android app?