Tips For Reconciling Payments In Xero

Tips For Reconciling Payments In Xero

  1. Common Reconciling Errors
    1. Reconciled to the incorrect owner
    2. Overpayment reconciled as a “Prepayment” not an “Overpayment”
    3. When reconciling as an “Overpayment”, the “From” field is not matched to the owner's contact in Xero.
    4. It is not matched to the owner's invoices; instead, it is treated as “spend money” during the reconciling process.
  2. Only click “ok” if the money received item is green.
  3. Do not click on the “ok” button if the right side is white. Click “Match” and search the owners name and match to an invoice (Or split or Overpayment)

  4. Owner pays less than they owe - Split Function
    1. Click “Match”
    2. Search owner

    3. Select invoice and then click “Split”
    4. The amount paid will be entered in the “part payment” section and will reduce the amount owing on the invoice.

  5. Owner pays more than they owe – Overpayment Function.
    2. In the Reconcile tab of your bank account, for the line you want to reconcile, click Find & Match.
    3. Search for the overpaid invoice, then select the transaction
    4. Click New Transaction, then select Receive Money
    5. Select drop down Direct payment, then select Overpayment.

In the "From" field, always delete what has been copied by Xero and retype the owner name, matching with their contact.
    1. Reference – Overpayment
    2. Description – Overpayment
    3. Total – Overpaid Amount
    4. Click Save Transaction and then click reconcile
    5. The overpaid amount will be featured as a credit on the owner’s opening balance on next month’s statement
Prism does not recognise "Prepayments", only "Overpayment"