Account for a lump sum payment

The Transactions page is only available in the web version of Wave. To view it log in to your Wave account at waveapps.com.

When a customer has more than one invoice due at a given time, 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 payment received outside of Wave

Record a lump sum payment received with Wave’s online payments

Record a lump sum 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.

To split a transaction, the payment transaction must be in Wave. Wait until the transaction imports automatically through a connected bank account, or manually add an income transaction. Learn how to Create an income transaction.

        1. On the left-side menu, select Accounting > Transactions.
        2. Find the transaction for the lump sum payment.
        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. If the payment is for more than two invoices click Split transaction to create additional sections. You need one section for each invoice included in the lump sum payment. 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.

Record a lump sum payment with Wave’s online payments

If a lump sum payment is made using Wave’s payment feature, a negative amount will appear on the invoice the payment was applied to. 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.

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.

First, move the additional funds into the created lump-sum account. This will leave the paid invoice showing the correct payment and hold the additional funds to be distributed to the relevant invoices.

        1. On the left-side menu, select Accounting > Transactions.
        2. Locate the invoice that has the lump sum payment 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. Click Submit. This applies the correct amount to the overpaid invoice 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 Accounting > Transactions.
        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 created customer lump-sum account after applying a payment to the intended invoices, ensure the correct lump-sum amount was paid. If there were additional funds received, learn how to account for the overpayment.