Merchant Fees

GPearson

I just started taking payments through Wave as I am moving to this platform. On a recent invoice that was paid, I see a Merchant Fee. When I try to edit a past invoice that was paid by credit card through Stripe on the old invoicing system, I do not see the ability to split the transaction and attach the Merchant Fee category to this invoice.

I have all of the Merchant fee costs and how can I go back to update past invoices to use this account.

ConnorM

Hey @GPearson!

Wave doesn't automatically account for taxes in Stripe's fees. Since you're in a region where Stripe charges tax on the processing fee, you'll need to add this manually using a Journal Transaction. To open this function, click on More > Add journal transaction in the upper right-hand corner of the Transactions page.

If the tax you're recording is recoverable, the Journal Transaction should look like this:

Dr Sales Tax Paid Account for the amount of the tax
Cr Payments by Wave clearing account for the amount of the tax

If the tax is not recoverable, the Journal Transaction should look like this:

Dr Merchant/Stripe Fee Account for the amount of the tax
Cr Payments by Wave clearing account for the amount of the tax

Then, if you have your bank account set to automatically import to Wave, make sure to categorize the incoming deposit as a transfer from the Payments by Wave account.

One last thing to note - if the tax you're paying is recoverable, make sure to add this detail to the notes of the Journal Transaction for your records. You'll also want to use the account transactions report for this Sales Tax, found by going to Reports > Account Transactions report, when filing. Because this tax has been entered manually using a Journal Transaction, it won't appear on the Sales Tax report as other transactions do.

I hope this helps to guide you, and clarifies how to keep track of tax on fees for your Wave account.