Bank rules

Use bank rules to create transactions for frequently occurring items

What is a bank rule?

Xero has it's own process for coding invoices, bills and receipts, but needs some manual input to code other transactions.

Bank rules allow you to tell Xero how to code these once. After this, Xero will apply the rule to new transactions so you can simply click 'OK' to reconcile.

When should I use them?

Use bank rules to code frequent transactions which don't have a supporting invoice, bill or receipt, such as:

  • wages

  • pension payments

  • bank fees

  • interest

  • monthly payments (insurance, rent, lease)

  • tax payments

  • commissions received

  • transfers between accounts

Using bank rules saves time!

Create a bank rule

During bank reconciliation

The easiest way to create a bank rule is while you are reconciling your bank account. Go to Options > Create bank rule. Complete the information required

Spend money rule / Receive money rule:

  1. Conditions (e.g. payee contains 'Barclays')

  2. Contact (you'll probably already have the organisation in your Xero Contacts)

  3. Fixed fee items (only useful if you have a mixture of fixed and variable elements)

  4. Remainder (e.g. assign 100% to Bank Fees or allocate % as appropriate)

  5. Reference

  6. Target a bank account (which bank accounts(s) will this rule be applied to?)

  7. Name (add a meaningful name e.g. Barclays Bank Fees)

then Save.

Transfer money rule:

  1. Conditions (check what identifying features are shown on your bank transfers)

  2. Create a transfer (which accounts are receiving the funds?)

  3. Tracking

  4. Reference

  5. Target bank account (which bank accounts(s) will this rule be applied to?)

  6. Title (add a meaningful name, e.g. Transfers from PayPal)

then Save.

At other times

Manage Bank Rules by going to:

  • Accounting > Bank Accounts

  • Clicking Bank Rules

Learn more about bank rules at Xero Central.