Applying credits to customer invoices

EvanEvan Member Posts: 1

Hello,

I'm new to Wave, switching over from QuickBooks. I handle the bookkeeping of my three-unit self-managed condo association.

I had setup in QuickBooks that each unit is a customer, and I generate invoices each month for the condo fee due from each unit. I also have liability accounts setup for when a unit makes a purchase for the condo association. When that happens, I make a journal entry crediting the reimbursement liability account and debiting the expense account.

Most of the time, we just reduce the next monthly fee by the reimbursement amount. Reflecting this in QuickBooks was relatively straight-forward; I'd create a journal entry debiting the reimbursement liability account and crediting the A/R account for that unit/customer. When I'd enter a payment for the unit's condo fee, I was able to select the credit they had from the journal entry.

I've been playing around a lot and searched the community, but cannot find an equivalent procedure in Wave. Any suggestions?

Thanks.

Comments

  • JordanFromWaveJordanFromWave Administrator Posts: 219 admin

    Hey @Evan! First of all Welcome to the Wave Community Forum! On behalf of all the Waver's, we are really happy to have you :)

    I'm definitely not an accountant, but I do know how many Wavers opt to manage customer credits, which sounds like it would apply here. In most of these cases, a customer has over paid on one invoice and the extra amount is to be applied to a different invoice in the future. When the customer overpays, the deposit transaction will be split in 2 amounts (1 amount for the invoice and then 1 amount for the overage). The invoice payment is categorized to the invoice (using the category "Payment for an Invoice in Wave". The Remaining amount can be categorized to a Liability account that you can create to hold the credit until it is needed.

    In order to use the credit, you can navigate to Sales > Invoices and find the invoice and apply a partial payment in the amount of the credit that you are applying. The key here is that you are using the liability account as the payment account.

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