How to record a bonus without accompanying invoice?

mattmatt Member Posts: 2

I am using Wave in a very simple fashion--creating invoices, sending them out as PDFs, getting paid by check, recording the payment "on the invoice".

I received a bonus from a client. There is no accompanying invoice. I'd like to record this bonus payment in Wave. I do not have Payment by Wave turned on, I am only using the "payments" feature that is part of Invoices. I don't see how to record a payment that doesn't have an invoice, but I might be missing something.

I could issue a fake invoice for this client in the amount of the bonus. That would pretty clearly work. I am not crazy about this though, it might cause confusion later. Can anyone tell me a better way?

Comments

  • EnsignBellaRoEnsignBellaRo Member Posts: 28 ✭✭

    I can think of two ways to handle it, @matt.

    1. You could edit the invoice after the fact, and add an item called "Bonus" or "Tips" and price it at the amount of that bonus. You can make a custom income category on your chart of accounts if you want to track it separate from your sales.

    2. Add it as an income transaction on the Transactions page. You should also categorize it to something of your own creation.

    Either case, it'd be a good idea to create a category on our chart of accounts for that money. Call it Tips or Bonus or Gratuities. Whatever makes the most sense to you. Just keep in mind how taxes interact with tips in your country.

  • mattmatt Member Posts: 2

    I think adding on the Transactions page should do it.

    Thanks for the suggestions @EnsignBellaRo .

  • ManiMani Administrator Posts: 76 admin

    @matt, and anyone else who may stumble upon this thread:

    We agree that creating a fake invoice isn't ideal, and modifying an old invoice or applying an overpayment to an invoice can be cumbersome.

    The best way to handle such a situation is exactly as @EnsignBellaRo suggested with point #2: on the Transactions page (under Accounting), create a new Income entry and input the amount, and categorize it as "Sales" or create any other Income account in your Chart of Accounts that you prefer. For example, you could have one called "Bonus Payments" if you so choose.

    Note that if you've connected your bank account, or uploaded a bank statement CSV, and that deposit has already been pulled through, you can simply categorize it accordingly. If it's a lump sum payment inclusive of your owed invoice payment, you can split the transaction and categorize its two parts.

    This is how the multiple parts of Wave's invoicing tools and accounting tools come together and integrate to give you the full picture of what's happening in your business.

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