Splitting deposits

Molly

I have a customer who has 30 days credit, he pays a round number when he makes a deposit. In other words the amount deposited not match an invoice amount. So when I upload my bank statement and want to categorize this expense in wave i.e.: payment for invoice sent in wave, it will not allow me to split the transaction unless it adds up to the amount deposited. What is the solution?

JamieD

Hey @Molly. I just want to confirm with you here -- is the total deposited amount higher than the actual invoice amount? That sounds likely, which means there technically isn't really a workaround for this at the moment. If you could include a screenshot of exactly what you're trying to accomplish though, it would give me more insight on how to properly assist you in this situation.

mishtc

I would agree on needing to split a deposit, only my issue is the opposite of Molly's. For a brief time, our main client wanted to pay by wire transfer, and would not alter the way they were instructing the bank to send the wire which meant that THEIR bank fees were coming off the top of the amount sent and I have 2 invoices that are now short 7 dollars each. I want to post the full amount received on the invoice as a credit to my accounts receivable, debit the amount received on the bank that is the amount due short the 7 dollars, and debit the 7 dollars to my bank fees expense account. Without this capability, Wave isn't a real accounting program. It's great that technology can think for us in a lot of ways, but there are other times when not being able to think for ourselves and manually do double-entry accounting basics puts a real spanner in the works. It's been months now that I have these two invoices sitting there with an "amount due" that is never going to come into the bank. If I didn't like 3 hours from the closest bank, then I would probably need to just go in and deposit our own cash just to make it go away.
Molly's issue above would be fixed by being able to do double-entry accounting where she could post the overpayment to an "other revenue" account, or a "prepayment received" account that she could then use later towards another invoice.

Molly

So Basically the amount deposited can be higher or less than the amount of any particular invoice as it is an account. So for example I invoice for 5000 in a month and my client then makes 2 separate payments of 2000 each , then next month I invoice for 500 and he deposits another 2000 the following month . My problem is if he is not depositing the exact amount of a particular invoice then I have a problem. I need to be able to allocate payment for a specific amount of that 2000 to one invoice and then there still might be a balance owing on his account. I have tried to do a screen shot but I am not able to capture all the info.

EmmaP

Hey @Molly & @mishtc thanks for reaching out about this!

@Molly - If the payments you receive from your customer are higher than what initially invoiced, you can split the deposit transaction to the invoice and a ‘customer pre-payment’ account. First you will need to head to your Chart of Accounts page > click on the ‘Liabilities’ header > scroll down to ‘Customer Pre-Payments & Customer Credits' > Add account.

When you receive the deposit from your customer, split the payment and categorize it as ‘Payment received for an invoice in Wave’. Then categorize the remaining amount to the ‘customer pre-payment’ account. When you next invoice your customer, you can use the ‘customer pre-payment’ account to apply funds to future invoices as well.

@mishtc - If the deposit amount you receive is lower than the invoice amount, it is a different process. You will need to add a few accounts to start. Head to your Chart of Accounts page > Under Asset add an account (Cash & Bank) > name the account ‘Money in Transit’. The second account you need to add is an Expense account under 'Payment processing fees’ called customer bank fees (or something along this line). Once you have created these, head to: Accounting > Transactions and create an income transaction to the Money in Transit account for the full invoice amount. Categorize it as ‘Payment received for an invoice in Wave’. Doing this will mark the invoice as ‘Paid’. For the amount lost to customer bank fees, create an expense transaction in the Money in Transit account for the amount (in your example it would be $7). Categorize it as ‘customer fees’. When you receive the deposit from your customer, you can categorize the income transaction as ‘Transfer from’ and select the Money in Transit account.