Refunds on an invoice

Charlie05Charlie05 Member Posts: 5

How do I put a negative amount into an invoice to represent a refund.

Comments

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @Charlie05.

    You wouldn't do this from the invoice itself. On your transactions page, you'll create an expense transaction from the appropriate bank account, for the amount of the refund. As the category, choose "Refund sent for an Invoice in Wave".

    You'll then have the option to choose a specific invoice. Let me know if that helps!

  • Charlie05Charlie05 Member Posts: 5

    Hi Alexia. Thank you for replying. I just want to put a negative figure in the invoice. The stuff i do is really basic and i do not have the whole accounting system

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @Charlie05.

    You could just add a line item for the refund and give it a negative value, then record a negative payment for the invoice. I can't recommend you do that given that it'll complicate things if you ever do decide to use our accounting tools in the future.

    If you can give me a bit more details about your business and about this specific transactions, I might be able to offer a different way to handle this.

  • Charlie05Charlie05 Member Posts: 5

    Thats the problem. It wont allow me to put a negative sign in fron of the line item.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @Charlie05.

    Are you trying to do this from the iPhone app? That would explain the problem. The keyboard that appears on iPhones for that field doesn't give you access to a minus sign. It's a design choice of the iPhone calculator keyboard and we can't affect that ourselves. If this is the case, you can copy a minus sign from outside of Wave, or from a different field (one that presents a full keyboard), and paste it in that field.

  • Charlie05Charlie05 Member Posts: 5

    Thank you so much. Your suggestion worked perfectly.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Happy to hear it, @Charlie05!

  • SarahdriverSarahdriver Member Posts: 1

    Alexia, how would you suggest refunding a bond or deposit?

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @Sarahdriver.

    If no invoice was issued, I would recommend using a journal entry to do this. Just credit your bank account for the amount of the refund and debit the account that you chose as a category when you accepted that money (for a deposit, this should be a liability account).

    You can create a journal transaction by clicking on the "More" button on the top right of your Transactions page and choosing "Journal transaction".

    I hope this helps!

  • hksuzukimusichksuzukimusic Member Posts: 15

    I have an additional question on refunding an invoice. You originally wrote above - "create an expense transaction.... As the category, choose "Refund sent for an Invoice in Wave". Can you clarify if I need to make a new category account?
    I have been issuing refunds as an expense, but my accountant has been unable to tie my refunds to my invoices. i.e., we download all the files and he uses the invoice_items.csv to calculate my income. Because my refunds are not linked to my invoices, we are having problems reconciling. any suggestions?

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @hksuzukimusic,

    No, it won't be categorized as an expense, with an expense account. I just noticed that you used the older version of Wave, which makes it a little less intuitive. On the older version, you'll have to add that transaction as a negative payment to your invoice. Considering that you can't add a payment to an invoice on the Invoices page if it's fully paid, there are obstacles to go around.

    Let's say you have a refund for $50, here's what you'd do.

    • Find that invoice on the Invoices page and click on the invoice's number.
    • On the following page, click on "remove payment". Take notes of the date of that payment, since you'll add it again soon.
    • Click "Record a payment" and record a new payment for $-50.00, use the date that you refunded your client as the date of this transaction.
    • Click "Record a payment" again and add the original payment for $50.00 to that invoice. Make sure to use the same date and information as you did originally.

    If you then want to write-off that invoice entirely, you can do so by following the instructions here.

  • hksuzukimusichksuzukimusic Member Posts: 15

    Thanks. Is it possible to move the current version of Wave? Any steps I could take, or song and dance I could do?

  • hksuzukimusichksuzukimusic Member Posts: 15

    Also, it won't let me add a negative payment. I deleted the original payment so that I could add a payment

  • AlexiaAlexia Administrator Posts: 3,315 admin

    I'll have to look into this, @hksuzukimusic. But I do have a have a different method. I tested this one and it shouldn't cause any issues.

    1. Go to your transaction page and click on "Add an income".
    2. Write $-16,550.00 as the amount.
    3. Categorize it as an invoice payment for that invoice
    4. Go to your invoice and add the original payment again.

    No, there isn't currently a way to speed up the migration process for a specific account. We're moving our users over as fast as we can while ensuring the integrity of their data. We are moving forward at a good pace, but I can't give you a timeline as to when your specific account will be moved over.

  • hksuzukimusichksuzukimusic Member Posts: 15

    thank you. I've confirmed that method works.

  • TopteamTopteam Member Posts: 1

    @Alexia said:
    Hi, @Charlie05.

    You wouldn't do this from the invoice itself. On your transactions page, you'll create an expense transaction from the appropriate bank account, for the amount of the refund. As the category, choose "Refund sent for an Invoice in Wave".

    You'll then have the option to choose a specific invoice. Let me know if that helps!

    Hi I HAVE DONE WHAT YOU STATED Alexia. But in my category i am not able to see REFUND SENT FOR AN INVOICE. So i greated an Sales refund in Income.

    So on the transaction page I opened an expense (which immediately makes your figure a negative) then under category INCOME - i chose sales refund and for ACCOUNT I chose Bank which is how customer made payment. Is this right?

    edited November 19, 2018
  • JordanFromWaveJordanFromWave Administrator Posts: 118 admin

    @Topteam This could be a good alternative, however the way that Lexi previously explained would ensure that the refund let's you know which invoice it was for. I'd maybe consider adding that the description or notes of the transaction you've created in the event that you forget which invoice was refunded.

  • YanYan Member Posts: 3

    Hi,

    I read this thread and it makes little sense to me.

    I have a client, they were 2 for a package, now 3. so the price is lower. I edited the invoice and added a -R for revised to the invoice. Now he overpaid. So the invoice shows the amount due ($*.) negative.

    The way I think I learned to do it in my accounting course is using a contra revenue account. for the refund.

    But anyway, if I follow your steps:

    You wouldn't do this from the invoice itself. On your transactions page, you'll create an expense transaction from the appropriate bank account, for the amount of the refund. As the category, choose "Refund sent for an Invoice in Wave".

    You'll then have the option to choose a specific invoice. Let me know if that helps!

    I do not have the option to choose "Refund sent for an Invoice".

    The invoice page does not give me the option to add a payment as it is fully paid (overpaid).
    If I choose in transaction add income, add negative income, I cannot choose the invoice if I select "Create Invoice Payment".

    I just wasted an hour on this :(

    I think Wave needs to streamline the process. I really do not know if I have the updated version or not as I cannot see the version number anywhere.

    How to proceed?

  • JusmihJusmih Member Posts: 3

    Hi There,
    I am also having an issue with refunds. The customer made a purchase and paid for it, the invoice was created and a payment was made for the purchase, the outstanding balance was zero at the point. the next day I had to give the customer a refund, I have followed your advice and issued a "refund sent for an invoice in wave" against the invoice for the customer however it now says that there is an outstanding balance for the original amount on the invoice and its also on my dashboard saying the balance is now due? I thought it would have said refund on the invoice, but its saying payment made, even though I have used the refund option?

  • JamieDJamieD Administrator Posts: 448 admin

    Hi @Yan. When you are on the transactions page itself, and you create an income transaction -- you should be able to put a minus symbol infront of the dollar amount. From here, you can categorize this as an invoice payment that has been accepted in Wave. You should be able to associate this with the refund that was created for this particular invoice.

    @Jusmih In a case like this, you will technically need to write the invoice off as bad debt (not as bad as it sounds) by following this help centre article here; https://support.waveapps.com/hc/en-us/articles/115000031243-Dealing-with-bad-debt-How-to-write-off-an-invoice

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