Unable to categorize incoming credit card invoice payments

Placidbeach

I am unable to categorize incoming credit card invoice payments from customers as SALES. Normally when an invoice is paid, I end up with a deposit to bank account that needs a category, and I typically use SALES.

But when Wave accepts a cc invoice payment, it creates:
1) a deposit into Payments by Wave account (reduced by the fee Wave takes as a cut)
2) a withdrawal from Payments by Wave acct. categorized as a transfer to bank acct
3) the transfer from Payments by Wave shows up in the bank account categorized as a transfer from Payments by Wave.

So there is no "income" entry coming into the bank account that's available to CATEGORIZE as SALES.

I tried adding income to the bank account, categorized as SALES, to then merge with #3 above, but it won't let you merge a deposit with a transfer.

I CHANGED #2 above from a transfer to just SALES, so it leaves it to build up in the Payments by Wave account, which I'm sure is a NO NO.

What should I be doing??

Placidbeach

Sorry, I guess I changed #3 from a transfer to just SALES and deleted the #2 withdrawal/transfer from Payments by Wave acct to bank acct.

Placidbeach

To restate the problem, normally with an invoice payment,

A) WAVE creates a deposit to bank acct categorized as "Invoice payment..." and
A bank entry imports as a Wave deposit that needs to be categorized, and I simply choose SALES.

So the problem comes in due to Cr. Card payments coming into Payments by Wave instead of into the bank account, and those can't be edited. They are grayed out.

Barsin

Hey there @Placidbeach

Income Account - Sales

When you initially create your invoice and products, the product itself is tied to an income account. You can view this on the invoice level

Wave Payment Bookkeeping

Your payment bookkeeping as you mentioned is as follows

1) When a customer pays by credit card or bank payment, Wave automatically creates a single, multi-line transaction to account for both the income and processing fee for the payment. In the update, you'll see that split transactions are no longer two distinct transactions- they are single, multi-line transactions to make reconciliation much easier.

2) Wave automatically posts this to an account called Payments by Wave. This is a system-created clearing account in the Money in Transit assets sub-category. This accurately reflects that when a customer makes a payment, you don't have this money yet, but that it will be deposited at a future date.

3) Finally, the deposit transaction will be imported via your bank connection. Wave automatically recognizes this transaction, and creates a transfer transaction from the Payments by Wave clearing account to your bank account, showing that the funds have been deposited. Wave recognizes the descriptor for the deposit transactions to create this transfer. Don't manually change the deposit descriptor, or this function won't work!

So in theory since your products and services are tied to your income account "Sales", but the transactions you see on your transactions page won't need to be categorized to a Sales account. this should be the case for all invoices regardless of the type of payment your client uses.

Hope this helps