Invoices Unpaid because of Transfer Fees

Skillbard

Hello,

I'm sure this is answered elsewhere but I don't have the terminology to search it!

I'm having a problem with invoices appearing unpaid, even after they have actually been paid, because the payment is short due to international transfer fees…

EG
—I've create an invoice for £1000
—The client pays but only £910 comes into my account because £10 was taken by the international transfer service.
—I record payment of £910 but the invoice remains on the Unpaid list because it is still waiting for £10.

I tried recording a payment of £-10 but that doesn't work. If there isn't a proper way of solving this, are there any other dirty tricks like that that could work?

Thanks very much!

Sophia

Hi @Skillbard great question! I'm wondering if you've connected your bank account to Wave so that your transactions are imported automatically? Let me know if so as it adds one small step to this

Basically, you're going to create two transactions.
1. Transaction 1 - mark the invoice paid in full - after all, that's what your client paid! Just go ahead and mark it paid/create a transaction that pays it off in full
2. Transaction 2 - if you haven't already, create an expense account under your Chart of Accounts called something like "Payment Fees." After you've marked the invoice as paid off, create an expense transaction from the same bank account where you recorded the invoice. The expense account will be the new Payment Fees account you just created, and the amount will be whatever fee amount was deducted by the payment processor/transfer service you used.

Now you're balanced! The invoice is paid off and you've correctly accounted for the fee you paid. The added benefit to this is that you get more accurate reporting - you can see what you actually sold (the £1,000) AND how much you're paying in payments processing fees!

If you do have your bank connection on and your transactions are importing, the final step here would be to actually delete the imported payment (in this case the £910), because you've already accounted for everything correctly with the first two steps.