Hey @Ushm . If you're returning a purchase, you can categorize the income as "Refund for Expense" in your Transactions page. This same process applies to a refund of sales as well. You can categorize that expense as "Refund for Income."
@Ushm Correct! A refund for an expense wouldn't technically be considered an income in the traditional sense (like incoming funds for a sale) although on the transaction level, you're right, it is an income! Similarly, issuing a refund for a sold product wouldn't be considered a traditional expense so much as a 'cancelling out' of the funds which were once considered income for a sale. While these transactions won't show up on your profit and loss report, the flow of funds certainly will be accounted for on your transactions page and your bookkeeping will be accurate!
Which category would you like to remove? You can certainly archive an account by heading to Accounting > Chart of Accounts > select the pencil icon and then select 'Archive'.
Hi I have further questions on Sales Return. I want to record these as a contra-revenue in my accounts. So should I then create a "Returns & Allowances" under the category of "Discounts" or under the category of "Income"?
Hey @Lenny86! Thanks for reaching out here. That's definitely an interesting situation! Can you let me know why you'd like to do that instead of using the usual returns/refunds process within Wave? I think the account would best be listed under 'Income', but I'd be interested to see what your thought process here is
This topic is being really interested. I am maintaining a small restaurant and let my customers to place orders online. The food I sell expires on the same day. In certain situations I get returns of the ordered products even after the invoice has generated. For an example, customer doesnt accept the goods due to delivery delays etc. How do we do accounting in this instance in wave ?
Hey @Tearcodiac , thanks for your message! In this case, you'll want to write the invoice off, as per these directions right here. I send you this link just because there are a number of steps which are well-described there, rather than cramming them into a comment here - but if you need help with any of the steps, please feel free to reply here!
Ushm
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Hey @Ushm . If you're returning a purchase, you can categorize the income as "Refund for Expense" in your Transactions page. This same process applies to a refund of sales as well. You can categorize that expense as "Refund for Income."
@Ushm Correct! A refund for an expense wouldn't technically be considered an income in the traditional sense (like incoming funds for a sale) although on the transaction level, you're right, it is an income! Similarly, issuing a refund for a sold product wouldn't be considered a traditional expense so much as a 'cancelling out' of the funds which were once considered income for a sale. While these transactions won't show up on your profit and loss report, the flow of funds certainly will be accounted for on your transactions page and your bookkeeping will be accurate!
Which category would you like to remove? You can certainly archive an account by heading to Accounting > Chart of Accounts > select the pencil icon and then select 'Archive'.
Hi I have further questions on Sales Return. I want to record these as a contra-revenue in my accounts. So should I then create a "Returns & Allowances" under the category of "Discounts" or under the category of "Income"?
Hey @Lenny86! Thanks for reaching out here. That's definitely an interesting situation! Can you let me know why you'd like to do that instead of using the usual returns/refunds process within Wave? I think the account would best be listed under 'Income', but I'd be interested to see what your thought process here is
Hello Guys,
This topic is being really interested. I am maintaining a small restaurant and let my customers to place orders online. The food I sell expires on the same day. In certain situations I get returns of the ordered products even after the invoice has generated. For an example, customer doesnt accept the goods due to delivery delays etc. How do we do accounting in this instance in wave ?
Much appreciate your comments
Hey @Tearcodiac , thanks for your message! In this case, you'll want to write the invoice off, as per these directions right here. I send you this link just because there are a number of steps which are well-described there, rather than cramming them into a comment here - but if you need help with any of the steps, please feel free to reply here!