Account for a lump sum invoice payment

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When a customer has more than one invoice due, they may make one payment for the total due rather than multiple small payments for each of their invoices. The lump sum payment transaction must be split to record a payment on each remaining outstanding invoice.

Record a lump sum invoice payment received outside of Wave

Account for a lump sum invoice payment received with Wave’s online payments

Record a lump sum invoice payment received outside of Wave

If a customer pays with a lump sum amount outside of Wave (such as with a check), split the payment transaction to account for each intended invoice.

1. On the left-side menu, select Accounting > Transactions.
2. Find the transaction for the lump sum payment. Click the dropdown arrow to the right, then select Edit more details. Or, create an income transaction and fill in the details.
3. Click Split transaction. Two sections will appear to divide the payment.
4. Enter the amount of the first invoice in the top section. Categorize it as Payment Received for an Invoice in Wave and select the matching invoice number from the dropdown menu.
5. In the next section, enter the amount of the next invoice. Categorize it as a Payment Received for an Invoice in Wave and select the relevant invoice number from the dropdown menu.
6. Click Split transaction for as many invoices as have been paid. Categorize each section as a Payment Received for an Invoice in Wave and select the relevant invoice number from the dropdown menu.
7. When the transaction is split into a section for each invoice paid, and every section is linked to the corresponding invoice, click Save.

If there were any additional funds received, learn how to account for the overpayment.

Account for a lump sum invoice payment received with Wave’s online payments

If a lump sum payment is made using Wave’s online payments feature, a negative amount (indicated using brackets) will appear as due on the invoice the payment was applied. This is the amount to be recorded on the other outstanding invoices.

You need to bookkeep this overpayment to a temporary account before you can apply the payment to other invoices. To do this:

1. Create a new liability account in your Chart of Accounts under Customer Prepayments and Customer Credits to act as a customer lump-sum account. Learn how to add accounts.
2. On the left-side menu, click Sales & Payments > Invoices.
3. Click on the overpaid invoice to open it.
4. Select Manage overpayment. Wave automatically enters the overpaid portion in the Amount field.
5. In the Method field, select Refund via other payment method.
6. In the Account field, select the customer lump-sum account you created.
7. Click Submit.

This makes the balance due on the invoice zero and credits the created lump sum account for the remainder of the funds received.

Next, you need to apply the additional paid funds to the correct invoices. This will ensure that the lump sum payment is recorded on the intended invoices.

1. On the left-side menu, select Sales & Payments > Invoices.
2. Locate one of the overdue invoices included with the lump sum and click on it.
3. In the Manage payments section, click Record a payment.
4. In the Method dropdown, click Other payment method.
5. In the Account dropdown, click the lump sum account you created.
6. Repeat these steps until each invoice is recorded as paid.

If funds remain in the customer lump-sum account after applying payments to the invoices, you will need to account for the overpayment.