Wave Money check deposit and bookkeeping

When you deposit a check to your Wave Money account, we simplify the bookkeeping for you!

This is a preview of Wave Money's latest feature Check Deposit. This feature will be released to all Active Wave Money users soon! 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 through your Wave Money app, you can match the deposit to an existing invoice. This marks your invoice as paid. If you don’t have an invoice for the deposit, you can select an appropriate category, or choose to leave the transaction as uncategorized. 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.

How to deposit a check

How does the bookkeeping work?

How to deposit a check

  1. Sign in to your Wave Money app, and on the dashboard, select Deposit Check.
  2. Take an image of the front and back of your check.
  3. Enter the amount of the check.
  4. Enter the relevant details in the From and Memo fields.
  5. If you have an existing invoice for the check, match the invoice to the deposit by selecting the appropriate invoice from the suggested list. If you received a partial amount, or don’t see the invoice in the suggested list, click on Search for an Invoice, and search by customer name, invoice number, or amount.

    If you don’t have an invoice for the check, select Deposit check with no invoice, and select an appropriate account. If you’re not sure of the category yet, you can choose to leave it uncategorized, by selecting Uncategorized Income from the list of accounts.
  6. Click Confirm check deposit.

That’s it! You’ve successfully deposited your check, and the funds will be available in your Wave Money account in 5-8 business days.

How does the bookkeeping work?

Let’s assume you successfully deposited a check through the Wave Money app, and matched it to invoice #01-003, 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.

    Since you matched the check deposit with an invoice, the invoice is marked as Paid. Navigate to Sales > Invoices in your Wave account to review the status of an invoice. If the deposited check is a partial payment for an invoice, the status will appear as Partial.

    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.

    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.

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 later edit the category of the transaction on the Transactions page. To edit, click on the dropdown arrow to the right of the transaction, then select Edit more details. In the transaction detail view, click on the Category dropdown;

  • 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 successfully, and matched it to an invoice, or selected a category. However, on rare occasions, the bookkeeping details-the category or invoice you selected, do not save correctly due to an internal error. When this happens, you are notified by email. The check deposit processing itself is not affected by this error. Once your check clears, you will need to 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 will not reflect 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 a refund to the account you selected.
  • If you did not select any category, the reverse transaction is also left uncategorized.