What is a payment account?
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What is a payment account?
A payment account is any account into which you deposit income, or out of which you pay bills.
Common payment accounts include:
Savings accounts
Checking accounts
Lines of credit
Cash on Hand
Cre...
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Difference between owner drawings and cash on hand not made clear. Help section refers to an older version of wave apps. Program does not allow for payment in actual cash.
Hey @sisisisisisisis! Owner drawings are a direct withdrawal from business cash/assets for your personal use; meanwhile, cash on hand is simply cash you haven’t deposited in the bank. Think of cash on hand as petty cash, if that helps!
Hey @joelbazanye . Although Wave doesn't directly support inventory, we do have Help Center articles on the best workaround for tracking it. Check it out: Simple inventory entry & tracking in Wave.
why it is showing the today invoices in yesterday dates
Hi @syedqaim5 , I'm afraid I don't understand what you mean by this. Can you please explain your question in more detail? We would be happy to help!
Need to understand this.
When i create an invoice. Customer pays with a check. So it shows up to categorize and then when i record a invoice payment it allways shows up to be categorized. So it looks like two incomes??? Please help me understand this.
Michael
Hey Michael @MikeCan. Essentially what happens when you record a payment on an invoice/also have a bank connection -- two transactions occur: 1) For marking the invoice as paid, and 2) For the deposit that lands in your account. In this case, you could technically just categorize the bank deposit transaction as 'Payment received for invoice' OR, alternatively, if you've already marked the invoice as paid in Wave, you can simply just delete the bank deposit transaction that happened or merge them together.
@Ronell Are you looking at your Accounting > Chart of Accounts in Wave? Or are you looking at your Banking > Bank Connections? It may be that you added your Checking Accounts in Accounting > Chart of Accounts > Assets but specified the name of your actual payment account? You can certainly archive any accounts you don't use (Accounting > Chart of Accounts > pencil icon > Archive) but make sure you're not deleting any transactions that you need! You can also re-categorize transactions into different accounts if you need to. You can do this by clicking on transactions and using the drop-down menu under 'Account' to switch where the transaction lives!
When I go to record a payment, I get several options, starting with my checking account. Also included are Cash on Hanmd and Owner Investment / Drawings. That's all good. But I'm also seeing Services, Tools. and Materials for Projects. These should remain in the Chart of Accounts, but they are not relevant as payment accounts. How can I eliminate them from the drop down? Thank you.
What I'm seeing is not in the chart of accounts or bank connections. There is a dropdown that is displayed when I go to record a payment of a bill. That drop down contains separate lines for
My Bank Account
Cash On Hand
Services
Owner Investment / Drawings
Tools
Materials for Projects
I don't understand how this list is populated. For my purposes, bill payments will be allocated to either my bank account, cash on hand, or owner investment drawings. Not only do I not need the other accounts, but I'm not really understanding how a payment could be drawn on them. I'd like to eliminate them from the drop down, but more important, I'd like to understand how they got there - where they fit into the process. I'm new to Wave (coming from a strong Quickbooks background) - overall I like it, but I'll feel more confident when I can understand this. Thank you.
So, how do I get some attention to my two previous posts (which are on the same topic, the second one trying to clarify the first)?
Help please with how the list of payment accounts available to me is compiled - I have three "Other Short-Term Liability" accounts - two of them appear on my list of payment accounts when I go to record a manual payment and one does not... Why not? - what is different about it? - why is it excluded and the others included??
I set them all up at the same time...
Very baffled.
Thanks Jean
Hey @Jean! That definitely sounds like an interesting situation. Are you able to explain what kind of accounts you have created as short term liability accounts and also the specific situation you are in where your short term liability accounts would need to be used as a payment account? It's tricky to tell you exactly why this is happening but I have a hunch that likely has to do with how the account was created or the nature of the transaction, so the context here will be helpful.
@gpeery I see that you also submitted a ticket for our support team with the same questions. I can see that the ticket has been assigned to a specialist, so you should get a reply shortly
HI @JordanD many thanks for coming back to me.
We are an analytical laboratory - we offer testing services.
The cost of the different tests varies but the concept is the same - pay 100 for one test or buy a package and pay 1000 upfront for x tests, to be done over the next y months.
My challenges are around tests paid for in advance - where we took over packages that clients bought from the supplier of one of our pieces of equipment.
The value of package tests we took over was deducted from the amount we paid the supplier.
This involved three clients and I created three “Other Short-Term Liability” accounts and credited them from the Bill I created for the supplier’s invoice (negative amount on the Bill and I found the three Other Short-Term Liability accounts on the drop down menu under “expense category”).
When those clients have something tested, I create an invoice and record the payment from their Other Short-Term Liability account – except only two of the three accounts are available on the drop down payment accounts menu… And that is where I am stuck.
As far as I am concerned the three accounts are identical… where can I look to see why two of them make it to the drop down menu, but the third doesn’t??…
(For clients who purchase a package from us I create an account for them under “Customer Prepayments and Customer Credits”; credit that account when the package payment is received; and debit it when recording a payment on the invoice when they have something tested. This seems to be working happily.)
Hey @Jean , to confirm, are these accounts located in the exact same spot/sub-category in your Chart of Accounts? Also, how do you differentiate between them if they're all called the same thing?
I still have questions and thinking I need to talk with someone directly to see if I can go back and fix my mistakes. It's a huge problem and I know I have a lot of work to fix it, but wondering if there is a way to do a group edit? I'm trying to see how to convert almost a whole years worth of payments that were "paid to, cash on hand", to now be put into my checking account, from deposited checks? Then also, how do I record when a deposit that has several invoices paid in one check from a customer? It's all been duplicated and my PL shows that I made an astronomical amount of money. Please help Me- So lost!
If a customer pays directly with credit card is there a fee? Or will a percentage be deducted from the total payment?
How can the name of the customer that deposit money in my bank account appear on my report when I call bank ledger
Is it possible to have SUB-Categories in the Chart of Accounts so that the P&L reports a sum of the sub-categories into the 'parent' category??
I would like to group together expenses like Alcohol & Tobacco, Music, Entertainment as "Personal Expenses",
or group together Insurance – Home, Insurance – Vehicles and Insurance – Life & Disability under "Insurance"
or Fuel, Maintenance, Road Tax, etc under "Vehicles"
@DFF The only charge that happens when using Wave Payments is the processing fee (for credit cards, it's 2.9% + 30 cents -- if AMEX 3.4% + 30 cents -- for ACH payments it's 1.0% per transaction). If your client is paying you outside of using Wave Payments, there is no additional charge.
@Ajiroba_Moroof Are you referring to having the billing descriptor for your payments changed so it includes the customer name, rather than what it currently states? It's currently not possible to change the billing descriptor in what your statement says once you are paid by a client. In Wave, the description of the transaction will always say 'Invoice Payment' but you can add notes on the transaction if necessary (it will also have the correct invoice attached to the transaction).
@Luison I'm afraid this isn't something that's currently available in Wave at the moment, and we don't have any plans to be adding this feature in the near future just yet. It has been discussed throughout the community and potentially it's something to be considered down the road, but we are currently pooling our resources elsewhere at the moment.
just want to know recording a cash deposit transaction. How to record a cash deposit?
Hey @Whiteoaksranch! I can see here that you'd reached out to our Support team with this inquiry, and they've responded via email at this time
Glad we could help!
This stuff never makes sense. Why have bank accounts and things like Accounts Receivables. Why use the same words?? Accounting is the most illogical thing in the world.
hi, can we restrict the accounts that we can pay or receive money from? i.e. only show Bank and not the other assets or liability
Hey there @TanPhengSoon
If and when you create an asset of liability account, it will typically appear under your transactions page. Any physical account with cash or loan spending will appear as funds that can be accessed from your transactions page for smoother transfers. Hope this helps.
Hi - for a transaction about a month ago, I was able to record payment via vendor credit account that I created under my "Liabilities" Tab. I am trying to record payment to the same vendor for a recent transaction and for some reason I am not able to select the same Liabilities vendor credit account as before. Why is this and how can I choose to record payment for an invoice with vendor credit? Thank you in advance for your help! =BB
Hey there @BriBel
This seems odd! Would you mind elaborating a bit on what this looks like? What steps did you take on the previous transaction that worked and are you doing anything differently? Can you share any screenshots of what your payments list looks like for the accounts available? Are you able to check on this account under Accounting > Chart of accounts > Liabilities? Is this account still there and not archived?
Thanks so much for your cooperation on this!
Hi @Barsin
Truthfully, I do not remember the way that I did it the first time, but when I look in my Transactions, I can see that I have a sales Transaction that has an account selected called "Hayshaker Farm Credit", under "Vendor Prepayments and Vendor Credits". However, I have a new invoice from the same client that was paid and I want to assign it as paid via the same account, so I go to:
Invoices -> Record Payment -> Record a Manual Payment -> Payment Account
And neither "Vendor Prepayments and Vendor Credits" nor "Hayshaker Farm Credit" are there. I can then select "Create a New Account" and another tab opens up with all of my "Asset" accounts where I can then see the "Hayshaker Farm Credit" under "Vendor Prepayments and Vendor Credits", but I am not able to select it to use it. Now that I explain it, I think the way that I did the first invoice/transaction I first talked about, I think I created this new account to assign it to the transaction, but it is not available when I try to assign payment to that credit account from other invoices.
Edited on 9/18/20 - @Barsin - so, I just discovered that even though "Hayshaker Farm Credit" is not available as a payment account in the web browser version of Wave, it IS available in the Invoice App on Android. Strange? I think so. I would love to be able to submit a ticket to correct this error in the web browser version of Wave.
Thank you for any help.
Brian