Comission Retention

MarcK

Hi,

I'm working with companies like Ubereats which sell your product, collect the money and pay your sales less their commissions.

So if i sell for $10,000, i will receive a payment of $8,000 for example.
So i will create an invoice for $10,000, a bill for $2,000.
How can I "pay" the invoice partially with the amount received, partially with the debt of the bill ?

Thank you very much.

Marc

Alexia

Hi @MarcK.

We're at work on a streamlined way to handle merchant account fees from third-party payments processors, but for the time being, you should be able to account for the fees using the steps below:

• Create a special holding account to record full invoice payments.  Head over to the "Chart of Accounts" in the Accounting tab. Click "Add an Account" and choose "Money in Transit" as the account type under the "Asset" header.

• When an invoice is paid, add an income transaction to this account for the full amount of the invoice before fees, and categorize this transaction to "Payment for an invoice in Wave" to mark the invoice as paid.

• Add an expense transaction to the holding account for the amount of the merchant fees, categorized to "Merchant Account Fees."

• When the invoice deposit is actually deposited into your account (this should be the invoice amount less the merchant fees) categorize this transaction as a "Transfer from.." and select the holding account.  

We're building out a way to cut down the steps above, so this workflow is only temporary! For now, this will allow you to account for merchant fees as a separate expense without throwing off your ability to perform Reconciliation.

Let me know if you need more help with any part of this!