Confusion over sales versus wave invoice entries
minz
Member Posts: 3
Hello! My clients are paying their invoices via Wave. Wave auto-records a transaction, posting the entry under 'Payments by Wave'. It records this as income. Then there is an additional bank entry of the income that is recorded as Sales (my bank account is connected to wave). So there is a double up on the profits for that entry. I can't delete the 'Payments by Wave' so I delete the double up from my bank. However, the bank reconciliation function doesn't pick up the remaining 'Payments by Wave' entry. So I've re-entered the original entry, posting to my back account, which then reconciles the bank account. But when I do a profit/loss report it registers double the income. Could you please explain and instruct what I should do to fix this?
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@minz,
When you use invoicing, a sale is recorded when the invoice is created. When you receive payment you need to tell Wave that a deposit/payment was for an invoice. You would match that deposit amount against an invoice so that you avoid your issue.
That's starting to make more sense now thanks Mike. However, I am trying to now adjust the entry in Wave. The payment entry I have created I originally allocated to sales. When I try to change the category to 'Payment received for an invoice in Wave', nothing comes up. Additionally, it looks like the Wave auto created invoice has already registered the deposit. But the account is 'Payments by Wave' rather than the bank account.
@minz,
If Wave creates the entry, I'm not sure it can be edited because it was created from an invoice. How are you being paid? I'm an expert in accounting and have a general understanding on how Wave works. My guess would be if you set up to receive payments through Wave then you would need to point the deposits(payments) to your bank account. Wave may have a default account that it is using to receive payments.
Hi Mike, thanks a lot for your help
Got a response from the Wave customer care team as well, so it's all resolved now. Have a look at this link if you'd like to know how to do the accounting for this in Wave:
https://support.waveapps.com/hc/en-us/articles/115004964423-Bookkeeping-changes-to-Payments-by-Wave
Glad you were able to resolve. I took a quick read and understand it is a temp holding account while funds are in transit.
Best of luck!
@Mikeg So I followed the steps above and since my invoice is $299.99 and the actual amount that is deposited into my bank was $290.00 ($9 transaction fee), when I link the invoice to the deposited transaction, It shows that there is a $9 remaining balance on my current invoice. Is there a way to record that $9 expense and link it to the invoice so that it is properly accounted for? Please let me know what you think and if you have any recommendations on how to proceed, thank you.
-Alex
@Conaxion,
I'm not an expert on the invoicing features but it appears that if you are not using Wave payments then it becomes trickier to be able to mark the invoice paid in full and record a bank fee. Personally, I have clients on Wave and use invoicing but I always recommend using another profile for invoicing and one profile for bookkeeping.
You can do a search under Sales and invoicing Merchant Fees