Automated bookkeeping with online payments

For Wave to be able to complete your online payments bookkeeping automatically, you must connect your bank account for transaction imports or upload bank statements.

The automated bookkeeping process

The transfer transactions are missing, or you don’t import transactions

The automated bookkeeping process

For a video tutorial on how automated bookkeeping works, see Video: Automated bookkeeping with online payments.

When you receive an invoice payment through Wave, 3 transactions are automatically created or categorized, in the following order:

1. An income transaction for the invoice payment is created. This transaction will be in the Wave Payments account, which is a Money in Transit account.
2. When your bank transactions import or you upload your bank statement, the income transaction is automatically categorized as a Transfer from Wave Payments. This transaction shows the payout has been deposited into your bank account.
3. An expense transaction is automatically created and categorized as a transfer to your bank account. This transaction represents the funds moving from the Wave Payments account to your bank account.

When you receive a payout that includes multiple invoice payments, the bank transaction will reflect the total amount of funds received rather than a transaction for each invoice paid. To view the payments that were included in the payouts, view your payouts.

The transfer transactions are missing, or you don’t import transactions

If you import transactions and don't have the transfer transactions, the payout deposit transaction may not have been automatically categorized as a transfer. If you don't import transactions, you must create the transfer transactions.

To add the transfer transaction(s):

1. Open the Transactions page.
2. Find your payout deposit transaction, or create an income transaction.
3. Select the category Transfer to a Bank, Credit Card or Loan, then Wave Payments. If you’re creating a new transaction, fill in the remaining details.
4. Select Save.
5. Wave automatically creates and categorizes the matching expense transfer transaction.