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.
    1. In the Reconcile tab of your bank account, for the line you want to reconcile, click Find & Match.
    2. Search for the overpaid invoice, then select the transaction
    3. Click New Transaction, then select Receive Money
    4. 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"

    • Related Articles

    • Prism Finance And Xero Overview

      Overview of Both Systems The integration with Xero allows Prism Finance users to manage finance transactions and billing processes in Prism, along with payment reconciliations and other accounting specific tasks in Xero. Specifically, Xero is used ...
    • How to integrate Prism and Xero

      Prism has chosen Xero as its Finance partner quite simply because they are recognised as the best online accounting system in the world. It is simple and easy to use, affordable but powerful and also able to be integrated to a wide variety of third ...
    • Sample Xero screens and reports

      Accounts Receivable in Xero With all Invoices, Xero creates an Accounts Receivable that mirrors the amounts and Owners in Prism.  For Bill Payment via Prism Pay, the payment will automatically reconcile against Prism and Xero.  Where there is a bank ...
    • How to setup Thoroughbred Payments

      By choosing to integrate Thoroughbred Payments with your Prism Finance portal, you enable the following benefits: A PAY HERE button on each monthly Statement/Invoice sent which allows owners to easily pay the amount owed via credit or debit card; ...
    • How to import Racing NSW expenses and owner prizemoney pre-payments

      As a NSW-based trainer, you can import data from Racing New South Wales' Stakes Payment System (SPS), after the RNSW Statements are sent to you. This typically occurs on or soon after the 15th of each month and again on or soon after the last day of ...