Automatic Wave Transactions
Dollydink01
Member Posts: 5
Apologies if this has already been discussed before but I am running out of time to get this sorted. Prior to the upgrade on 31 January 2019, when a payment was made created by the Wave System, it would show in the bank in full, including the merchant fee. Then, about 10 days later when the actual payment was received, it was net of the merchant fee. At this time, I would delete the later amount received in the bank and my bank account showed the amount received created by the Wave System. However, since the upgrade, payments created by Wave cannot be deleted. However, they don't appear in the bank. Then, when the actual money is received about 7 days later minus the bank fee, if you delete this, as Wave advise you to, there is no funds appearing as being received in the bank (although the invoice is marked as paid). Please can somebody tell me what I am doing wrong - I have been mulling over this for days now. Thank you!
Comments
Hey @Dollydink01 , thanks for reaching out. You're observation is correct, bookkeeping for payments by Wave has changed since the update. In the new version, reconciling the invoices that are paid by credit card is automatic and doesn't require you to delete that second transaction. Instead, this is what happens:
1) Your customer pays and this automatically creates an income transaction and corresponding expense for the processing fee (just like before).
2) Wave automatically posts this to the Payments by Wave account, which is a money in transit account. This represents that you don't have this money yet, but you will.
3) The income transaction imports from your bank connection. Wave then recognizes this transaction, and automatically transfers the funds from the Payments by Wave account to your actual bank account in Wave. This is based upon Wave recognizing the WAVSV9Txxxx descriptor for those transactions, so make sure you don't change the descriptions on them!
This article explains this in more detail, but I hope my short version helps. Please get back to me if you have any questions.
Thanks, Zoe - prior to your response, I read through various other posts and worked out what I had to do - unfortunately, Wave didn't recognise the transactions and automatically transfer the funds from the Payments by Wave account to my actual bank account in Wave - I had to do this manually. Perhaps my settings are wrong. Are you able to advise how I change my settings?
Just out of interest, why does Wave go through all these hurdles when, like Xero, you could just wait for the payment to hit the bank and it's dealt with immediately. Why does Wave duplicate the transaction and make life so much more difficult? Am at a loss to understand why everything has to be so unnecessarily complicated.
Hey @Dollydink01 - it's likely not so much your settings at this point as it is the way the information is pulled in from your connected bank. When Wave imports a transaction which is from an invoice payment, what descriptor does it get imported in?
Wave looks through the imports for descriptors which match the norm (usually WAVESV9T****), but some banks will change this descriptor. Though their adjustments are usually easier to read on the bank statement, it prevents Wave from recognizing this as the other end of a money in transit transfer, rather than 'new' income'.
The reason we use the Money in Transit transfer method is in order to reconcile accounts on a month-to-month basis. With items like checks, or our in-house processing, where there is a discrepancy between paydate and deposit date, when these fall in different months, it becomes difficult to track. I'm not familiar with Xero's posting, but if you were to send an invoice through them, it is only marked as paid once the actual money lands?