Xero How To Process Part Payments of Invoices

Sometimes customers pay invoices off over multiple payments.

You might have negotiated payment terms for them to pay their outstanding account over time. Weekly, monthly etc.

So how do you match payments to the invoices in the bank reconciliation.

There is an easy way to do it and in this video I will show you how.

We have a Step by Step Procedure downloadable as a PDF available for download. Just click the link below.

 Download the Full Procedure as PDF

Transcription

Sometimes customers pay invoices off over multiple payments.

You might have negotiated payment terms for them to pay their outstanding account over time – weekly, monthly etc.

So how do you match payments to the invoices in the bank reconciliation function in Xero. There is an easy way to do it, and in this video I will show you, and don’t forget you can download the step by step procedures to show your staff as well.

We will go into the Bank Reconciliation function and find some payments and receipts and here is the first one – we have a receipt of $1000 so we will click ‘Match’, ‘Find and Match’ and we are going to say this relates to Pinnacle Management and we are just going to click ‘Split’ and we will then allocate $1000 to that payment and then we will be able to reconcile.

That is all you have to do. If you found another payment – here is another payment for $1500 we can click ‘Find and Match’ and we go to Pinnacle Management which is now showing a lesser amount and we can now allocate the $1500 to that.

We can now see there is $580 outstanding – click ‘Reconcile’ and if we go into the ‘Sales’ and have a look at the amount outstanding for Pinnacle Management – click on the invoice it will show the total invoice amount with the payments for each period.

That is all there is to it.