How to handle invoice deposits or pre-payments

SystemSystem Posts: 123 admin

imageHow to handle invoice deposits or pre-payments

If you work with clients on an ongoing basis, or if you're beginning a large project, you may want to accept a deposit or pre-payment from your customer. We'll walk you through how you can easily h...

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edited February 5, 2019 in Help Center Discussion


  • jwillowjwillow Member Posts: 2

    I want to edit an existing invoice payment. It's probably so simple that no one thought to give instructions.

  • zrgravityzrgravity Member Posts: 1

    Will this duplicate the income amount? Is income only shown for the transactions on the income account, or for invoices against the pre-pay liability account?

  • PaulCPaulC Administrator Posts: 61 admin

    Hi @jwillow,
    If you click into a paid invoice record, the 3rd box on the page (above the main body of the invoice) deals with payments. Simply click to edit.

    Note, however, that you cannot edit a card/bank payment received through Wave Payments. That amount is what it is, and can only be changed if you refund the transaction.

    Hope that helps!

  • PaulCPaulC Administrator Posts: 61 admin

    @zrgravity - I guess you're referring to the part of this article about recording an invoice payment from the Customer Prepayments account?
    In that case, no; this will not create a duplicate payment. This is because the initial receipt of funds into the Customer Prepayments account is not treated as income; it is money arriving in your bank account (an asset), but offset by the liability to the customer. Creating the invoice creates records an amount of income, which is initially balanced by Accounts Receivable. Marking the invoice paid clears the Account Receivable with the Customer Prepayment.
    Hope that makes sense!

  • jwillowjwillow Member Posts: 2
    @PaulC This is great, thank you.
  • jared420jared420 Member Posts: 4

    Why cant there just be an option to have a deposit amount due a certain day and the remainder do another set date?

  • Ryan_WRyan_W Administrator Posts: 374 admin

    @jared420 while I respect that this would be convenient, it's tricky to build that in based on how the invoice creation date directly reflects when this income is going to be recorded as an expected payment to your A/R. What you're describing would be better served by having two separate invoices; otherwise, the workflow described in the article is your best bet.

  • jared420jared420 Member Posts: 4

    Yea, my current way is to send an estimate, then send the deposit invoice and then the final balance invoice. I just wish there was a setting to streamline this, making it automatically based on dates or time frames would be great too. Making a refundable deposit would also be great. Could also be as simple as

  • CasaChangoCasaChango Member Posts: 1

    How do you record retainers?
    This is a large amount the customer deposits from which multiple invoices are paid from.
    Where should the retainer amount be recorded, and how is this used to pay an invoice?

  • SamdSamd Administrator Posts: 358 admin

    Hey @CasaChango - right now Wave's invoicing and bookkeeping is targeted towards pay-per-service style invoicing, rather than having a retainer. Deposits, pre-payments, and credits are all things we're looking into making easier on invoices, but right now they require a bit of a workaround to track. Right now to generate a retainer, you could create a retainer liability account in Accounting > Chart of Accounts. You'd record this first as money deposited to your bank account, at which point you could transfer over to the liability account. Once an invoice comes due, you would then transfer the value back to your bank account, and categorize it against the open invoice(s) for that customer in Wave.

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