Refunding overcharged sales tax

hprinold

Hi, one of our clients was accidentally overcharged on sales tax and we have refunded him (there's also, just to complicate things, a Stripe fee on the transaction). When I try to categorize the transaction I can't seem to enter it properly (the tax refund is more than the transaction and I can't seem to get WAVE to accept that).

Any thoughts?

ZoeC

Hey @hprinold, thanks for reaching out! If you are sending an invoice and receiving a payment through Stripe, the amount on the invoice is not going to match the amount you receive in your bank account, so here's what to do:

1. Head to Accounting > Chart of Accounts > Expenses > Payment processing Fees > Add a new account. You can call this account Stripe Fees.
2. If you have your bank account connected, this connection will import the invoice payment deposit transaction minus the fees. So head to this transaction and split it.
3. Categorize the first half of the split as Payment received for an invoice in Wave > select the correct invoice and enter the full amount of the invoice.
4. Categorize the second half of the split as Stripe Fees and enter the amount of the fees that were deducted from your payment.

Then, if your bank is connected, it should also have imported the expense transaction for the refund you sent to your client (If it hasn't you can create an expense transaction manually on your transactions page) and you will need to categorize this transaction as Refund sent for an invoice in Wave, you can select the correct invoice from that drop down and enter the amount! I hope this explains things, please let me know if you have any questions