Wave Money is currently in limited release and available by invitation only. If you haven’t received an invitation, learn more about Wave Money here.
When you deposit a check to your Wave Money account, Wave simplifies the bookkeeping for you! While depositing a check through the Wave Money mobile app, you can match the deposit to an existing invoice, or select an appropriate category for it. 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?
Let’s assume you successfully deposited a check through the Wave Money app, and matched it to an invoice to record a full payment of $1234.56. Here’s how the bookkeeping works:
- An income transaction for $1234.56 is automatically created on the Transactions page (Accounting > Transactions) in your Wave account, 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 bank 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 will be able to edit the Category and Description fields if you need to.
- Once the check clears and the funds are deposited in your bank account, the income transaction is updated to reflect the date of the deposit. The account is updated from the Wave Money Check Clearing account to your Wave Money account.
When you deposit a check, if you don't match it to an invoice, the category of the transaction will be the specific account you select, or Uncategorized Income if you choose to leave it uncategorized.
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 in your Wave account. To edit:
- Click Accounting on the left navigation menu, then select Transactions.
- 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 in your Wave account.
What if the check deposit is not successful?
If the check deposit is not successful, an expense transaction is created on the Transaction page. This transaction reverses the initial income transaction created 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.