How to reconcile bank feed entries with invoices in Xero


Latest update: - Lucia Palozzi

Disclaimer: this article is for informational purposes only, and should not be relied upon as professional accounting advice. We encourage you to work with your accountant and other professional advisers if you require further information.

Objective

Reconcile the invoice sent from Vend to a payment in your bank account. These bank feed payments represent the actual money deposited into your account, whereas Vend's register closures represent what is expected.

Setup

  • Vend for Mac or PC
  • Xero integration

Steps

Perfect Reconciliation: the register closure totals are the same as the totals in the bank feed

  1. Xero should automatically match the bank feed payment to the payment on the invoice
  2. If this does not happen, click Reconcile Items in the bank feed
  3. Click the bank line entry 
  4. Click the invoice to apply the payment to under the 'Match' tabImage showing example of auto match

Register closure covering two or more days (the register closure total is more than the bank deposit)

  1. You will need to match the bank feed payment to the invoice payment
  2. An option to split the invoice payment will appear because the invoice exceeds the bank entry
  3. The remainder of the invoice can then be mapped to another bank entry

Lump sum bank feed payment for multiple register closures (the register closure total is less than the bank deposit)

  1. It is not possible to split a bank feed payment, so you will need to remove the payments from each register closure that the bank feed payment is intended for
  2. Without any payments on the invoice, this creates a balance that will appear in the reconciliation page
  3. You can select multiple invoices to match to the one bank feed payment

Additional Information

Bank Reconciliation in Xero (Xero)