The Etsy integration is available in business profiles based in the US with an active Pro Plan subscription.
Wave automatically imports your Etsy transactions that have finished processing every 24 hours.
Etsy accounts created in Wave
When you first connect to the integration, Wave creates all Etsy-related accounts automatically. These accounts are:
- Etsy Clearing Account
- Etsy Product Sales
- Etsy Service Income
- Etsy Discount
- Etsy Listing Fees
- Etsy Transaction Fees
- Etsy Payment Processing Fees
- Etsy Advertising and Promotion
- Etsy Shipping
- Etsy Subscription/Software Fees
- Etsy Uncategorized Income
- Etsy Uncategorized Expense
Sales bookkeeping
Each individual sale is recorded in the Etsy Money in Transit account. This is a single split deposit transaction that records the total sale amount and the different fees categorized to their relevant expense accounts. The order number is also included in the description and the link to the order in Etsy is in the Notes section.
All income not from a sale is recorded under the account Etsy Service Income. Any discounts received are recorded in the Etsy Discount account.
The Etsy integration doesn't import operational transactions like inventory or fulfillment tracking, or payouts you receive directly from Etsy.
Once you receive the payout for a sale, you must manually categorize the payment as a transfer from your Etsy Money in Transit account:
- Open the Transactions page.
- Find your imported payout transaction, or create a new income transaction.
- Select the category Transfer from a Bank, Credit Card or Loan > Etsy Money in Transit. If you’re creating a new transaction, fill in the remaining details.
- Select Save.
- Wave automatically creates the matching transfer transaction under the Etsy Money in Transit account.
Multiple payments and fees that are processed close together may be bundled into one payout. This means your fees may sometimes be greater than your income from sales. In this case, Etsy may charge the difference to your bank account. Categorize this withdrawal transaction as a Transfer to a Bank, Credit Card or Loan > Etsy Money in Transit.
How does Wave handle the sales taxes?
Due to Marketplace Facilitator Laws in the US, Etsy must collect and remit sales taxes directly to state authorities on your behalf. This means sales tax is not included in your imported transactions, to prevent incorrectly adding tax liabilities and inflating your income.
Etsy fee bookkeeping
Fees not associated with a specific sale are recorded as a single transaction, categorized to the relevant expense account.