How do I enter the shipping cost in invoice for the item i sell and it is charged to the buyer, what account should I make for that?
@milzamsz, I add it as a line item on my invoices, and I have an income account called "Shipping Payments". When I actually pay that shipping charge on my end, I make a journal transaction that credits my bank account and debits that income account.
I am having the same issue. I produce drinking chocolate.
I have given up on inventory, so I put everything under sales/income. Shipping is also sales/income.
My clients pay the shipping, and then I pay the shippers. Then when I pay the shippers one lump sum at the end of the month, it is under expenses.
I still come up as making more than I actually have. help please! (I REALLY don't understand journal transactions. )
@Ggfoto as @JenHopf mentioned, you can create a line item on your invoices for shipping. You can also create a separate income account for Shipping Fees to differentiate. When you pay the shippers, would you incur a separate expense for that? For example, you would have have your invoice including the shipping fee for which you would receive payment, and then an expense for the shipping fees, meaning your totalled income would be correct?
This is a different case, but you may also be interested in reading our reimbursement FAQ.
I am a notary signing agent and I charge per service that includes the shipping fee but by the other side I pay the shipping
How should I handle this in wave?
Another question, in this 2019 season I will be a tax preparer and I want to know if I need to have separate accounts or can I keep using my biz account that I am using now as a Notary ?
Hey @olivia_notary_tx, great questions.
In terms of accounting for you charging for, put also paying, shipping costs, you'll basically be showing the shipping cost as a reimbursable expense in the invoice. You'll want to generate an 'Other Income' account in your Chart of Accounts, and name it something recognizable such as 'Reimbursement for Shipping'. From here, head over to Sales > Products & Services, and create or edit a Shipping Cost item, with the payment account being the account you just generated. Add this to invoices going forward, and you should be good to go! In terms of paying out the expense, you'd want to add that on the Transactions page as you normally would, and all should balance out. You can also take a look at the more detailed workflow here: https://support.waveapps.com/hc/en-us/articles/115000588103-Claim-reimbursable-expenses-on-an-invoice
Also, depending on the situation, it may be worthwhile to generate a second business profile for your tax preparation. If you want to account for both business transactions in one account, you can definitely add transactions and invoices related to tax preparer to your business account. I would say the biggest determining factor is whether or not you'd like your reports to show your bookkeeping across these two activities (then keep everything in one account), or if you'd like to independently account for tax prep work.