Invoice Payments by Stripe calculated incorrectly
Zeafer
Member Posts: 6
I have set up the Stripe payments correctly. When I invoice a customer, they are able to pay via Credit Card.
The Stripe payment and Merchant fees recorded automatically are incorrect. I am unable to change these, as the transaction is automatically recorded by Wave.
For example: $360 Invoice Total
- Automatically recorded upon payment: $6 fees ($354 received to 'Payments by Wave')
- Actual transaction: $6.60 fees (only $353.40 received from Stripe)
Why are Stripe fees being calculated incorrectly? How can I correct this?
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Comments
Note that Stripe charges 30c + 1.75% on credit card transactions in Australia.
Hey @Zeafer
Wave doesn't automatically account for taxes in Stripe's fees. Since you're in a region where Stripe charges tax on the processing fee, you'll need to add this manually using a Journal Transaction. To open this function, click on More > Add journal transaction in the upper right-hand corner of the Transactions page.
If the tax you're recording is recoverable, the Journal Transaction should look like this:
Dr Sales Tax Paid Account for the amount of the tax
Cr Payments by Wave clearing account for the amount of the tax
If the tax is not recoverable, the Journal Transaction should look like this:
Dr Merchant/Stripe Fee Account for the amount of the tax
Cr Payments by Wave clearing account for the amount of the tax
Then, if you have your bank account set to automatically import to Wave, make sure to categorize the incoming deposit as a transfer from the Payments by Wave account.
One last thing to note - if the tax you're paying is recoverable, make sure to add this detail to the notes of the Journal Transaction for your records. You'll also want to use the account transactions report for this Sales Tax, found by going to Reports > Account Transactions report, when filing. Because this tax has been entered manually using a Journal Transaction, it won't appear on the Sales Tax report as other transactions do.
I hope this helps to guide you, and clarifies how to keep track of tax on fees for your Wave account.
@JamieD I have just had my account updated and have followed your instructions above. There still seems to be a duplicate transaction though - one is the invoice payment and the second is the amount deposited into my bank. I have marked the latter as a transfer from the Payments by Wave. Is there a step I'm missing? All of my income seems to still be doubled. Thank you in advance. This is definitely not my strong suit, so I'm muddling along!
Hey @PopYourCareer! This sounds like a funky one, I'm thinking that this might still be related to the bookkeeping changes to Payments by Wave. If you still think you'll need further help with this, feel free to shoot me a DM and we'll take a deeper dive!