Reconciling - Xero

Reconciling

Bank reconciliation is when you match statement lines from your bank account with transactions you create in Xero. Xero automatically matches transactions in Xero with statement lines where it can.

Get to the Reconcile screen by using either the:

• Blue Reconcile [n] items button on the Dashboard, or

• Reconcile tab on any of the bank account screens, or

• Reconcile Account link from the Manage Account menu.

Transactions you can reconcile:

Xero will try to match these types of transactions you've entered into Xero with imported statement lines:

• Invoices or bills that are approved and awaiting payment

• Spend money transactions

• Receive money transactions

• Transfers between bank accounts in Xero

• Expense claims that are authorized and awaiting payment

• Cash refunds entered directly onto credit notes

• Invoice or bill payments entered directly onto invoices or bills

• Expense claim payments entered directly onto claims

Match button - reconcile a transaction Xero has matched:

Xero automatically matches your imported statement lines with transactions you've entered into Xero. Xero bases this on the amount and closest date of the transaction in Xero compared to the imported statement line.

When Xero makes a match it'll show as a matching transaction under the Match tab in green. The match won't always be right, and it's easy to change it if it's not.

Accept the match and reconcile:

If Xero has matched a statement line with the right transaction in Xero, click OK to accept the match and reconcile

Choose from other possible matches found:

If you have checked Suggest previous entries, sometimes Xero finds more than one Xero transaction (with the same amount and similar dates) to match to the imported statement line. When this happens, Xero will match what it thinks is the most likely and provide a link to the other transactions that are good alternatives.

If you don't like the match Xero has made, use the Other Possible Match Found link to select one of the other possible matches.

NOTE: If you haven't entered the transaction into Xero, Xero won't make a match (or won't make the right match) during bank reconciliation.

Find & match - find invoice or bill to match part payments:

If your statement line is a part payment of an invoice, bill or expense claim payment, split it to apply the part payment during reconciliation.

You can record as many part payments as you need, to fully pay the transaction.

Use the bank reconciliation's Find & Match link to find your invoice, bill or expense claim transaction. Then select the invoice, bill or expense claim that you want to apply the partial payment to.

Use the Split link that appears next to the transaction to split the transaction and record a part payment. Xero enters the statement line amount in the Part payment field for you, if the transaction is greater than the statement line. To reconcile the statement line, click the Split button, then Reconcile.

The split payment shows as a payment made on the account transaction. Any remaining amount due on the invoice, bill or claim will remain displayed in the list of items that can be reconciled.