Bookkeep a chargeback through Wave’s online payments

The Wave Payments account and the Payments by Wave account are different versions of the same account. You may see one or both of them in your Wave account.

When you receive a chargeback on an invoice payment made through Wave’s online payments feature, the invoice cannot be deleted. To keep your books accurate and account for the chargeback withdrawal amount, there are four steps you must take:

Step 1: Record the chargeback transaction

Step 2: Record the chargeback fee

Step 3: Categorize the bank transfer

Step 4: Reconcile the Wave Payments account

Step 1: Record the chargeback transaction

To start, record the chargeback transaction:

1. Open your Transactions page.
2. Create a withdrawal transaction.
3. For the Date, select the date the chargeback occurred.
4. For the Account, select Wave Payments or Payments by Wave.
5. For the Category, select the related invoice.
6. For the Amount, enter the amount of the chargeback.
7. Click Save.

Step 2: Record the chargeback fee

When you receive a chargeback, there is an associated fee. To record the fee:

1. Open your Transactions page.
2. Create a withdrawal transaction.
3. For the Date, select the date the chargeback occurred.
4. For the Account, select Wave Payments or Payments by Wave.
5. For the Category, select Chargeback fee. If you do not have this account, create one in your Chart of Accounts.
6. For the Amount, enter the amount of the fee.
7. Click Save.

Step 3: Categorize the bank transfer

1. Open your Transactions page.
2. Find the withdrawal transaction for the chargeback. If the payment was combined with other invoice payments, the amount may be different from what you expect.
3. Categorize the transfer transaction to the Wave Payments or Payments by Wave clearing account. You don't need to split the transaction if it includes multiple payments.

Step 4: Reconcile the Payments by Wave clearing account

Reconcile your Payments by Wave clearing account to help ensure your books remain accurate. To reconcile this account:

1. Create a reconciliation period.
2. Enter the date of your last deposit, or the last day of the month, and a closing balance of $0.
3. Match the invoice payments that have already been deposited to your bank, and match the corresponding bank transfers. If there are invoice payments that haven’t been deposited yet, leave them unmatched.
4. Once the balance is $0, end the reconciliation period.