Invoice Payment - Processing Fees Problem

JaysonWonder

Hello All,

I am new to Wave and am familiar with the basics of bookkeeping. I have an problem and I am hoping others might have suggestions.

I have a customer who I have invoiced for $500. They paid using online bank debt / transfer. The issues is that when the payment came in, the bank / payment processor took their small fee directly from the payment. So now my bank shows a payment of $497.85 as the income. How can I account for this scenario? I know I can do journal entries of some sort but this will be come so tedious each time payments come in.

I would like to be able to make that invoice as paid in full while recording the my cost of the fees.

Thanks,

NeilR

This article will help: https://support.waveapps.com/hc/en-us/articles/115000472306-How-to-account-for-transaction-fees

Basically you are going to click the transaction and choose split amount on the right hand side. Change the Category 1 income amount to the Gross Amount (Assign it to invoice payment) and then the second category become a negative and categorised to a processing fee account. If you don't have one, you can create it when you split the amounts or in you chart of accounts create a new expense account under the payment processing fee account.
eg Category 1 becomes Payment for Invoice in Wave @ $500, and Category 2 becomes Payment Processing Fee @ -$2.15

NeilR

Use this article as a base: https://support.waveapps.com/hc/en-us/articles/115000472306-How-to-account-for-transaction-fees

Basically click the transaction. On the right choose split deposit
Category 1 becomes "payment for invoice in wave" and change the amount to the Gross amount eg $500
Category 2 becomes "Payment processing fee, or merchant fees etc" and change the amount to a negative for the fee amount eg -$2.15

If you don't have a processing fee account set up you can do at the time you split the deposit (use the add a new account option) or add one to your chart of accounts under Expenses>Payment Processing Fees

JaysonWonder

Thank you, I will try this approach!

GreenWithEnvyTurf

Can you add the fees into amount or can it be automatically applied when customers use the easy pay method?

JamieD

Hey @GreenWithEnvyTurf. There isn't a way to add the amount automatically in Wave, however, this help centre article should give you a bit more insight on how to accomplish this; https://support.waveapps.com/hc/en-us/articles/115000423946-How-do-I-pass-credit-card-fees-onto-my-customer-