How to record open ended bill in Wave

Charity

We have an open ended billing account at one of our service providers. These are bills to us for payment. Charges continually added and periodically partial payments made, including advance payments (leaving a credit on our account). How do I record all of this in Wave? I’m thinking I should I record this as one bill in Wave and continually add lines as charges are made and continually apply payments as they are made. Is this the correct way of doing this?

AlexL

Hi @Charity . The purpose of the Bills feature in Wave is to show that you've incurred an expense that you're liable for, thus ultimately paying it off at some point. By crediting the Accounts Payable account and debiting the Expense everytime a Bill is created, Wave can actively show this happening.

Adding everything to one Bill continuously over and over again probably wouldn't be the best way to do this.

A workaround I can advise on would be to create a liability account in your Chart of Accounts and every time you're billed, you can create a Journal Transaction crediting the liability and debiting the expense. When you're paying it off, you can then create a transfer from your bank account to the liability account, bringing the balance down.

In general, I'm still not sure that this work around would be a great long term solution so I would advise that you speak with an accountant on the best way to account for this.