Payments by Wave - In Transit Funds

rainwlildsrainwlilds Member Posts: 3

Hi there,

I recieved my first credit card payment the other day and noticed that a transaction was credited immediately under the Account "Payments by Wave". That Account appears under the heading "Money in Transit. That makes sense because it has to be process via Stripe first before hitting the bank account.

When it did come into the back account however, the transaction hasn't updated to reflect the correct Account. It is still in the "Payments by Wave" Account and I'm unable to even manually change the Account.

Any help would be appreciated.

Thanks,
David

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Comments

  • EmotionalHealthLtdEmotionalHealthLtd Member Posts: 9

    I'd love to hear the answer to this as well.
    Previously I deleted the Stripe bank transactions as they duplicated the invoice transaction
    But now my bank account does not reconcile and the amount is similar to the in transit funds
    What do I do
    And why was there no email about this
    Wave made major bookkeeping changes and left us to figure it out for ourselves
    Well yes it is a free service and I don't need to be spoon fed but I've spent a day trying to reconcile

  • rainwlildsrainwlilds Member Posts: 3

    Is this a community forum? It would be great to get a response from the devs. @EmotionalHealthLtd Glad to see that it's not me. Must be a bug or something...

  • SamdSamd Administrator Posts: 560 admin

    Hey @rainwlilds and @EmotionalHealthLtd, sorry about the difficulty this is presenting when reconciling. Wave should be auto-reconciling these transactions if a bank account is connected and the deposit transactions are being imported: Bookkeeping Changes to Payments by Wave

    In short, invoice payments are categorized to the "Payments by Wave" account temporarily while the payment processes. Once your bank account receives the actual deposit and the record is imported in Wave, a transfer is created from the "Payments by Wave" category to your bank account category.

    You can replicate this manually when the transfer reconciliation fails by following these steps:

    1. Navigate to Accounting>Transactions

    2. Locate the bank deposit

    3. For Account, select your bank account

    4. For Category, select "Transfer from Bank, Loan, or Credit Card"

    5. For the transfer origin, select "Payments by Wave"

    This will correctly tell Wave that the deposit has landed in your bank account as a "Transfer" from Payments by Wave, and is not simply a second payment.

  • HandymanHeadleeHandymanHeadlee Member Posts: 45

    We're still transitioning over to Wave and I'm still entering 2018 transactions. I'm just now trying to reconcile Payments to Wave to my bank account for August (when we started accepting Payments by Wave) through year end. We've chosen not to connect our bank account to Wave, so I assume this is why my August bank account reconciliation is off by the same amount as our Payments to Wave balance for that period. How do I manually record these transactions so my bank account statement will reconcile? I'm guessing a journal entry? Debit Payments to Wave and Credit Business Checking under Cash and Bank Assets? Thanks for any help you can offer!

    UPDATED TO ADD I did a journal entry debiting Business Checking and crediting Payments to Wave (I had the debits and credits backward above!), which fixed my checking account reconciliation, but now the Payment to Wave reconciliation is off by the same amount. Any suggestions on the proper way to do this would be greatly appreciated!

    edited April 13, 2019
  • Ryan_WRyan_W Administrator Posts: 462 admin

    Hey @HandymanHeadlee instead of creating a journal, you can just create an income transaction for the amount you received to your bank account (in lieu of having a bank connection established). Then, when you categorize this income transaction, you'll want to categorize this transaction as "Transfer from Payments by Wave", which will clear out the Payments by Wave account and properly attribute this income to your bank account.

  • HandymanHeadleeHandymanHeadlee Member Posts: 45

    Thank you, @Ryan_W! I knew there had to be a better way :)

  • marikemarike Member Posts: 5

    I don't understand why a journal transaction would be any different than creating the transfer which generates a set of income and expense transactions. Why does one way work for reconciliation but not the other?

  • EmmaPEmmaP Administrator Posts: 270 admin

    Hey @marike! Both would work here! A journal transaction will still create the correct balances in the asset account. However, if you create an income transaction on the Transactions page and categorize it as a 'Transfer' this will reflect on your cash flow report, whereas the journal transaction entry will not.

  • marikemarike Member Posts: 5

    @EmmaP I just tried this - my balance changes in the money in transit account is reflected in the cash flow report even though I've been using journal transactions to track money moving from "money in transit" to my bank account.

  • JamieDJamieD Administrator Posts: 1,117 admin

    @marike. I just thought I would confirm with you here -- is that what you want accomplished in Wave? Money movement from one account to another? As Emma stated above, if you are creating a Journal Transaction, or a transfer from an income/expense transaction (between cash accounts) it will show up in the Cash Flow report.

  • marikemarike Member Posts: 5

    @JamieD What I want accomplished in Wave is to record transfers between my "Pending Payments" account (Money In Transit) to bank account. Currently, I'm accomplishing this via journal transactions. There is an earlier post in this discussion from @Ryan_W that says

    instead of creating a journal, you can just create an income transaction for the amount you received to your bank account (in lieu of having a bank connection established). Then, when you categorize this income transaction, you'll want to categorize this transaction as "Transfer from Payments by Wave", which will clear out the Payments by Wave account and properly attribute this income to your bank account.

    I asked for clarification on which this was suggested instead of using journal transactions and @EmmaP said

    Both would work here! A journal transaction will still create the correct balances in the asset account. However, if you create an income transaction on the Transactions page and categorize it as a 'Transfer' this will reflect on your cash flow report, whereas the journal transaction entry will not.

    This is the current source of my confusion as when I look at Cash Flow reports, I don't see any discrepancy in my inflows or outflows which EmmaP suggests would be there due to using journal transactions to record moving funds from Money in Transit to my bank account.

  • HandymanHeadleeHandymanHeadlee Member Posts: 45
    @marike I'm the one Ryan was responding to with the alternate method, which properly accounts for credit card payments through Wave without connecting my bank account to Wave since I prefer not to do that. That may be part of the confusion here...if your bank account is connected to Wave the journal transaction should accomplish what you need. Keep in mind I'm not an accountant so I defer to the accounting experts here for the final word!
  • marikemarike Member Posts: 5

    @HandymanHeadlee thanks, that indeed resolves my confusion!

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