Duplicate Payments - E-Transfers and Cash on Hand

sixlabel

Hi Guys,

Wondering how we can integrate or merge invoice payments which we submitted as Cash on Hand to reflect E-Transfer payments which we received directly to our bank.

The payments are showing as duplicates for our Sales and causing a conflict with our imported bank data. We don't want to delete the invoice or e-transfer payment and not sure how to combine them.

Thanks for the help.

Samd

Hey @sixlabel! That's a great question - to keep both transactions, you should be able to categorize the payment that is being imported from your bank account as 'Transfer from Bank, Credit Card, or Loan'. Once you've selected this option, Wave will prompt you to choose an 'origin' account, which it will then attempt to reconcile by finding a related transactions, or creating the necessary transaction on out of that account. In your case it sounds like you'd want to choose Cash on Hand as the origin account. You should then see a number of transactions, but it should all balance without income duplication.

It'll look something like the following:

1 income transaction for a payment, made to an invoice into cash on hand
An expense from cash on hand for the value of the invoice, categorized as Transfer Out
An income transaction into your bank account as transfer in.

If you're running payments directly through Wave, this process should be occurring automatically along these lines: https://support.waveapps.com/hc/en-us/articles/115004964423-Bookkeeping-changes-to-Payments-by-Wave

But if you're marking invoices as paid, essentially what you're doing is accounting for money clearing as you would a check or other form of payment in which payment time and funding time are not equal: https://support.waveapps.com/hc/en-us/articles/360000389783-Recording-check-payments-in-transit

Also, if I could suggest potentially swapping out your Cash on Hand as your invoice payment account to a Money in Transit account (which you can generate via Accounting > Chart of Accounts). I suggest this because the cash on hand account in Wave is meant to be something along the same lines as petty cash. Of course, there are certainly situations in which invoices could be paid into cash on hand, and it's important that your workflows work for you. But by creating a dedicated Money in Transit account to have funds processed into when paid anything but cash, it'll be a little easier to show money as essentially clearing/pending, until it is realized by the actual deposit into your bank account.

I hope this helps!