How to associate your invoice payments to income accounts

When you buy or sell a product, the reported income or expense for these products will be associated with the income or expense category (account) configured in Product Settings.

Categorizing a transaction to mark an invoice as paid is specifically for manual invoice payments, paid outside of Wave. If you receive a payment through Wave, we'll handle the bookkeeping for you! Check out our Automated Bookkeeping with Wave Payments article here.

Here's an example of how income is categorized for invoice payments:

You sell furniture. You create an invoice for 10 couches and 10 chairs, to a total of 20. "Chair" is related to the income account "Chair income," and "Couch" is related to the income account "Couch Income." The total of the invoice is $3,500.

You receive the payment in your Checking Account (the account on the transactions page for this transaction will be Checking)

  • The category on the Transactions page will be displayed as "Invoice Payment."
  • The payment will appear on the Transactions page as an "Invoice Payment."
  • In this case, even if the category for the transaction (for the money received from the customer) is called Invoice Payment, the income would show in your Apple Income ($100) and Orange Income accounts ($100) in Reports.
  • In this case, even if the category for the payment transaction is called Invoice Payment, the income would show in your Chair Income and Couch Income accounts in Reports.

To check the income or expense associated with a product:

  1. Open the Sales menu and choose Products & Services.
  2. Click Edit (the pencil icon) beside the product.
  3. If the Sell this checkbox is on, you'll see an Income category here. If the Buy this checkbox is on, you'll see an Expense category here. You can select one or both.

To edit invoice payments assigned to an incorrect category: 

    1. Open the Sales menu and choose Products & Services
    2. Click Edit (the pencil icon) beside the product.
    3. Update the income or expense category. 
    4. Navigate to the Invoices page.
    5. Click the drop down arrow beside the Invoice and choose Edit.
    6. Delete the product from the Invoice, re-add it, and click Save. This will apply the change. 
  • Check Reports to double check your work. 
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