iPhone Upgrade Transaction

ecamhiecamhi Member Posts: 2

How would I set up each transaction with Wave:

  1. Purchase of iPhone from Apple using Citizen One (24 monthly payments)
  2. Monthly payments to Citizen One from Business American Express
  3. American Express statement paid by Business Checking

I have accounts for:
Business Checking
Business American Express
Citizen One Loan
Machinery Equipment etc.

The payment to American Express from Business Checking is handled as a transfer.
I can't figure out how to record the payment to Citizen One.

Thanks.

Eli

edited February 18, 2019 in Accounting

Comments

  • JamieDJamieD Administrator Posts: 448 admin

    Hi @ecamhi.

    1) Is this phone for your business? If so, you would want to categorize this as an operating expense for each monthly payment (add it as an expense if your bank connection isn't automatically importing into Wave).

    2) The Citizen One Loan account should be a liability account in Wave (it's not an asset account since it's a loan that you will need to pay back, much like a credit card). Is the Business American Express account a credit card account? This would also need to be listed under liabilities (just want to make sure here). In this case, you would need to create a Journal Transaction to show the movement of money between the two liability accounts; https://support.waveapps.com/hc/en-us/articles/208622746-How-to-edit-transfers-payments-and-journal-transactions

    3) Technically yes, the payment to the credit card from your bank account is considered a transfer; https://support.waveapps.com/hc/en-us/articles/208621616-How-to-create-a-transfer-between-two-accounts-e-g-categorize-a-credit-card-payment-

    Hope these help!

  • ecamhiecamhi Member Posts: 2

    @JamieD

    The Phone is for business and I booked it as one time purchase of equipment for depreciation. The Business American Express is a credit card account. Each month credit card account makes a payment to CitizenOne. I don't want to expense this payment since I expensed the full purchase price of the phone when I made the purchase. I then set up a balance due for the Citizen One account. I want the credit card payment to reduce the balance on the Citizen One Account and not show up as a business expense. FYI, no interest on this loan.

    Your suggestion to consider making a journal entry is appreciated. I think thats the solution.

    Thanks.

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