How to account for reimbursements in Wave Financial

Authored by: Support.com Tech Pro Team

1. Introduction

How to account for reimbursements in Wave Financial

2. Resolution

Step 1Go to Accounting > Chart of Accounts and click Add a New Account. Under the Account Type drop-down, select Credit Card, and name the account something that will help you identify it. In this case, let’s call it “Reimbursements - Raj.”

Step 2

Under Transactions, create an expense from Reimbursements - Raj to represent the initial transaction. Click Add Expense and enter the date of the purchase and a description. The category should be the relevant expense category â€“ in this case, “Office Supplies,” and the payment account should be the loan account you’ve created for this purpose, “Reimbursements - Raj.”

Before you reimburse Raj and enter that in Wave in Step 3, you can see the money you owe him (or anyone else you need to reimburse) by going to Reports > Balance Sheet > Show Details. 

Don’t forget to break out any applicable sales tax! If sales tax was applied to the initial purchase and you want to record that in Wave, enter the grand total amount when you’re entering the initial transaction, and then select Include Sales Tax and select the relevant tax. The tax amount will be calculated from the total – double check to make sure it matches the receipt.

Step 3

Now, when you’ve paid Raj what you owe him, you’ll want to create a transfer from your bank account to the loan account representing the reimbursement. On the Transactions page, click Add Expense, and enter a description line. Select the reimbursement date and the total amount reimbursed. Under category, select Transfer to Bank, Credit Card, or Loan and select the “Reimbursements - Raj” account you created for this purpose.

Click Save. Wave will automatically create a third transaction, showing the reimbursement (income) to the Reimbursement - Raj account.