Wave Money is in limited release. It is currently available to invited single-owner businesses in the United States.
When you deposit a check to your Wave Money account, Wave simplifies the bookkeeping for you. While depositing a check through the Wave mobile app, you can match the deposit to an existing invoice, or select an appropriate category for it. The rest of the bookkeeping is taken care of, eliminating the need to manually mark your invoice as paid, or separately categorize the transaction in your Wave account.
To learn how to deposit a check, see Add money to your Wave Money account.
How does the bookkeeping work?
Log in to your Wave account on a web browser to view the Transactions page.
- An income transaction is automatically created on the Transactions page in your Wave account (Accounting > Transactions), under a Money in Transit account called Wave Money Check Clearing. This helps you keep track of the funds before the check clears and the amount is deposited in your Wave Money account. The transaction is categorized as an invoice payment, and the invoice is marked as paid.
You cannot delete this transaction, or edit some of the fields like Account or Date, but you can edit the Category and Description fields.
- Once the check clears and the funds are deposited in your account, a transfer transaction is automatically created from the Wave Money Check Clearing account to your Wave Money account. The deposit transaction under your Wave Money account will be categorized as Transfer from Wave Money Check Clearing and the other side of the transfer is automatically created under the clearing account, representing the transfer of funds.
When you deposit a check, if you don't match it to an invoice, you can either select an account for it or choose to leave it uncategorized. The category of the transaction under the Wave Money Check Clearing account will reflect the specific account you selected or Uncategorized Income if you did not select an account.
What if you selected the wrong invoice number, category, or did not categorize the transaction?
When you deposited the check, if you selected the wrong category, invoice number, or if the transaction was left uncategorized, you can edit this on your Transactions page. To edit:
- Log in to your Wave account from a web browser.
- Click Accounting on the left navigation menu, then select Transactions.
- Locate the income transaction under the Wave Money Check Clearing account.
- Click on the Category dropdown of the transaction, then;
- To categorize the transaction as an invoice payment, or choose a different invoice number, select Payment Received for an Invoice in Wave, and the appropriate invoice number.
- To categorize the transaction to an income account, or any other appropriate account, select from the list of accounts.
You deposited a check, and matched it to an invoice, or selected a category, but the transaction did not get categorized in your Wave account. This can happen on rare occasions due to an internal error. If this happens, you will be notified by email. Once your check clears, categorize the transaction again on the Transactions page by following the steps above.
What if the check deposit is not successful?
If the check deposit is not successful, an expense transaction is automatically created under the Wave Money Check Clearing account on your Transaction page. This transaction reverses the initial income transaction created under the clearing account when you deposited the check.
- If you matched the check deposit to an invoice, the reverse transaction is categorized as a refund to the invoice. The payment details will not appear on the invoice anymore. The status of the invoice will go back to Unpaid, or Partial if there are any other partial payments recorded.
- If you selected a category while depositing the check, the reverse transaction is categorized as a refund to the account you selected.
- If you did not select any category while depositing the check, the reverse transaction is also left uncategorized.