Application or Knocking-off Vendor Prepayments / Advances to Suppliers

mhammadlatifACCAmhammadlatifACCA Member Posts: 37

I am a Professional Accountant and have used Oracle R12, Microsoft Dynamics GP, QuickBooks in addition to few other apps. I recently started using Wave for my new employer and found it good so far. I tried around a dozen web apps before using deciding to use Wave; Wave is a quite decent app but yes, there are few necessary features missing like vouchers printing, approval workflows etc. I hope the devs will be adding them sooner or later. Even that, we have managed to do our work with few workarounds and a few still need to be figured out like Deduction of Tax at Source (at the time of payment).

Anyway, lets come to the subject, I have two things to share with you guys:
1. How to create Vendor Prepayments or Advances to Suppliers in Wave.
2. How to apply / knock-off Vendor Prepayments in Wave.

1. How to create Vendor Prepayments or Advances to Suppliers in Wave

  • Create a new account in Chart of Accounts under "Assets > Vendor Prepayments and Vendor Credits" as a control account for Vendor Prepayments / Advances to suppliers
  • Go to "Accounting > Transactions > Add expense" with following selections:
    • Select your Bank or Cash Account in "Account" field for "Withdrawal".
    • "Add vendor" and select the Vendor in whose name you want to make a Prepayment / Advance payment
    • Select the newly created account (as mentioned above) in "Category"
    • Enter your cheque or transaction no. in the notes to track it from the bank statement in the future.
    • Save it
    • Use "Mark as reviewed" as an approval feature (although approval and transaction posting feature is missing in waves but its good to use this tick mark to use a senior review)

You are all set. Prepayment / Advance to Supplier can be seen in both Vendor (Accounts Payables (AP)) reports as well as in Balance Sheet (General Ledger (GL))

2. How to apply / knock-off Vendor Prepayments in Wave
When the actual bill / invoice from supplier arrives, you can record it in Wave and knock the previously available Prepayments. Currently, I don't see a feature for knocking-off / applying individual Prepayments to Vendor invoices but let's discuss what can be done for now:

  • Go to "Purchases > Bills > Create a Bill" (It would be nice if you have created all numbered items in a series for a particular class of items)
  • After you have saved a Bill, go to "Record a Payment".
  • Select "Other" as a "Payment Method" (You can always "Other" as "Payment Method" for Prepayment applications to give you a track that a particular "Record a Payment" was used for Prepayment application
  • You must select the newly created account as payment account (as used mentioned above; which you chose as "Category" during ------- "Accounting > Transactions > Add expense" in the Step 1)
  • Enter details of prepayment application in the Memo

That's all. You can check the AP and GL reports.

Please let me know if this works for you too.

FOR THE DEVS: @BarsinA @AlexL

  • The same "Record a Payment" form can be used to apply Prepayment.
  • Add a new line in LOV/Drop-down "Payment Method" named as "Apply Prepayment"
  • The LOV/Drop-down "Payment Account" should act as a dependent LOV/Drop-down when "Apply Prepayment" "Payment Method" is selected.
  • There can be a link to another form to show a table of existing prepayments of the vendor (must allow entering amount to apply; it isn't necessary to apply the whole of Prepayment)

Please let me know if you like it. I hope we can work together to improve Wave.

Happy Development!

Warm Regards


  • CalliePCallieP Member Posts: 439 admin

    Hi @mhammadlatifACCA , thanks for this thorough post! Everything you noted here in terms of processes for those actions is great, and is an awesome reference for our Community to look to for this action.

    In terms of adding the features you mentioned wanting to see built by our developer team, thank you for sharing this feature idea and demonstrating exactly how it could save you time/improve your workflow. While this is not something our team is currently working on building, that doesn't mean it will never come - and great feedback like this helps us to consider exactly how to prioritize changes like this. Thanks again :)

  • mhammadlatifACCAmhammadlatifACCA Member Posts: 37
    @CallieP thank you for your acknowledgement.

    1. I would love to work (for free) with you guys to improve wave; Please refer me to the right forum for this.

    2. As regards feature development, can you please direct me to the place where I can add a feature request?

    3. I would also like to know if the road map to developments in wave is viewable to end users.

    4. I would also like to bring to your attention the importance of approval workflows. There is a very big risk that editors (other than admin) can edit / delete a finalized transaction. If there are approved transactions, editors can be stopped from editing / deleting approved transactions.

    This is very critical; imagine one of your sub-ordinates has a problem with you; they mess up / delete your transactions a day before board meeting. :/
    edited July 17, 2020
  • mhammadlatifACCAmhammadlatifACCA Member Posts: 37
    @CallieP waiting for your guidance.
  • CalliePCallieP Member Posts: 439 admin

    Hey @mhammadlatifACCA , thanks for getting back! I'll address your questions in order below.

    1. Working for Wave: If you'd like to participate more within the Community, you can apply for a Wave Pro badge by following the directions here. Be sure to include a link to an interaction with another Community member whom you helped!

    2. Feature Requests: As of right now, we don't have a feature request portal, but we're happy to hear your feature ideas through the Community Feature Idea threads! The threads are aggregated into data (with our other customer-facing systems), which we then compare with our product goals & resources to determine which features to work on at a given time.

    3. Road Map: Wave does not currently have a public road map, I'm afraid. We are currently working on building better communication of our product's past, present, and future.

    4. Collaborators: Thank you for this feedback! As it is currently designed, we recommend not adding people as collaborators to accounts unless the account owner trusts them with the level of permission granted. We're not currently looking to change this feature right now. Thank you for providing the context into how this can impact a business' operations and even relationships - we consider all of this when parsing comments for customer feature ideas/feedback.

    Thanks so much!

    edited July 21, 2020
  • mhammadlatifACCAmhammadlatifACCA Member Posts: 37

    @CallieP It would be really nice to have something for 3. Road Map and 4. Collaborators. Anyway, thank you for your detailed response. Really appreciate it.

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