How automated bookkeeping works
When you receive a payment through Wave, three transactions are created automatically:
- Once a payment is recorded, you’ll see the invoice payment transaction on your Transaction page. This will be created under an account called Wave Payments, which is a Money in Transit account. A Money in Transit account is used to show that a payment is accepted, but the funds are still processing.
If you accept an Instant Payout, an additional expense transaction is automatically created under the Wave Payments account to account for the Instant Payout fee.
Learn more on how to withdraw an Instant Payout.
- When the payment is deposited in your bank account, the deposit transaction will be imported from your uploaded statement or from your bank connection (transaction import times vary depending on your bank). It’s then categorized as a transfer from your Wave Payments account.
- After the deposit transaction is imported, Wave will automatically create the other half of the transfer transaction and categorize it as a transfer to your bank account.
The two transfer transactions represent the movement of funds from the Wave Payments holding account to your bank account.
Wave automatically keeps track of the income from invoices under the income accounts you set for each of the products and services you sell. Learn about accrual vs cash-basis reporting.
What to do if a transaction is deleted, or is not created automatically
In the event a transfer transaction was not automatically created by Wave or it was deleted by accident, follow these steps to add the transfer transaction:
- In the left navigation menu, select Accounting > Transactions.
- Find your bank-imported invoice payment transaction, or create the transaction by clicking Add income.
- Select the category Transfer from a Bank, Credit Card or Loan > Wave Payments. If you’re creating a new transaction, fill in the other details too.
- Click Save.
Learn more at understand automated bookkeeping for invoices.
For a detailed report on your payment processing fees, in the left navigation menu click Reports, then select Account Transactions (General Ledger). In the Account dropdown, filter for Merchant Account Fees, then click Update Report.