Managing transactions from several sources.

ToddL

As an ecommerce company we sell on several platforms that handle sales differently. For instance amazon handles all the transactions and deposits the end result into our bank account twice monthly. One the other hand shopify uses both stripe and paypal to manage payments. Stripe has a daily deposit but paypal holds the money till I transfer it.

Where I need help is determining the proper integrations so that I'm not entering transactions twice. i.e. importing shopify transactions then importing that sale a second time when grabbing paypal information. Then potentially a third time when a manual transfer from paypal shows-up in my bank account.

Has anyone cracked this nut and can you provide insight? I'd like to use the integrations to capture all the various service fees, returns etc. But not if it means having to maintain a convoluted system of off-setting/counter entries to keep balance straight.

Emmanuel_Iyanu01

It essential to business to have different sources

JamieD

@ToddL @Emmanuel_Iyanu01 When you are adding multiple integrations in your Wave account (PayPal, Shopify, etc) it will create transactions associated with those accounts automatically. That said, our software will do it's best in terms of identifying transactions that are similar and merge them together (such as a transfer from one account to another). In any case, if you notice multiple transactions being duplicated based on the number of integrations/where the transactions are coming from -- you will need to merge or categorize them accordingly.

Union9

@JamieD. How do you merge them though. To merge the amount needs to correspond but Amazon doesn't really work that way. For example if I was to import 5 individual Amazon sales, says each one is $20. I then get a bank payment of an amount say $76.56. The point is payments don't really correspond with sales.

wagzz

You usually dont reconcile an individual sale to a lump sum payment. You track all of your sales, which go into accounts receivable, you then would get payments that decreases your accounts receivable amount and increases cash.
Your accounts receivable and cash should in a nutshell equal your sales revenue. That is, if you didnt spend any of that money.

Sharas

@wagzz @Katie_Silkina thanks for the great suggestions! Can you explain in more detail how to set this up in Wave? Thanks

GrizzlyBird

I have my Shopify, Bank and PayPal accounts directly connected to Wave. How should I categorize my PayPal receipts so that they deduct from my "Shopify Money In Transit" account? I am currently categorizing them as Shopify Sales which is causing me to double count my sales. Thanks for the help!

AlexL

Hey @GrizzlyBird and welcome to the Wave Community! I think I'd need a better explanation of what's going on in the real world to offer you advice on this. Can you explain exactly how funds flow through your accounts, and why your PayPal receipts would be deducting from your Shopify Money in Transit account?

Let me know!

GrizzlyBird

@AlexL I have my Shopify account connected to Wave. Payments from customers are made via credit card (which flows to a bank account) or PayPal (which flows to PayPal). My bank account is connected and all of those transactions are categorized automatically as "Shopify Payout Clearing Account". This deducts from the "Shopify Money in Transit" account. I'm not sure how I should be categorizing the PayPal receipts in order to accomplish the same thing as the Shopify transfers to my bank account.

ConnorM

Hey @GrizzlyBird! Thanks for that additional context! I'm wondering if it's possible that your PayPal workflow could just mimic your Shopify cc workflow - though you'd need to manually categorize those PayPal receipts into the appropriate accounts. Essentially you can make this whole workflow the same, however it'd just be something you'd need to manually set up.

GrizzlyBird

@ConnorM I tried this, but Wave won't let me use those Shopify accounts or categories for the PayPal transactions. I am also not able to create something that would work in a similar fashion. Those Shopify accounting movements are only available for those imported transactions.

CallieP

Hey @GrizzlyBird , thanks for getting back. I can confirm that the ability to have this auto-clearing of the money in transit (MiT) account is not a feature currently built out in Wave. If you wanted to accomplish the same thing as what occurs for the Shopify accounts automatically, you can create a MiT account for the Paypal transactions and then categorize your bank-imported income transactions as transfers. Here's how:

• Create the MiT account. Head to Accounting > Chart of Accounts > Add a new account (top right corner).
• Under Account Type, choose Money in Transit. Under Account Name, enter a name that you'll recognize, such as "Paypal MiT account". Click Save.
• Then, when you mark an invoice as paid, you can make the payment go to the MiT account.
• Once your bank imports the transaction later, you can categorize the bank transaction as 'Transfer from a Bank, Credit Card, or Loan', and then, 'Paypal MiT account'. Click Save.

This will show the funds as being on the way, and then deposited, while clearing the MiT account!