Payments between Auxo Workshop and Xero
Payments between Auxo Workshop and Xero can be posted using different account approaches depending on how your payment methods are mapped in Xero Account Mapping.
By default, many workshops use a clearing account approach for customer payments. In this model, payments entered in Auxo Workshop post to a Xero clearing account, and bank deposits are then reconciled against that clearing balance.
However, Auxo Workshop also supports mapping specific payment methods to specific Xero accounts, including mapping certain payment types directly to a bank account instead of a clearing account. This allows workshops and accountants to align payment postings with how funds are actually received and reconciled.
Best practice for reconciling different payment types
To make reconciliation easier and avoid unexpected clearing balances, we recommend mapping different payment types to different accounts where appropriate.
For example:
EFTPOS or card payments are often settled by the payment provider as individual deposits or as a combined settlement into the bank account. Mapping these payment types to a dedicated EFTPOS or card clearing account makes it easier to reconcile those settlements.
Cash is typically deposited separately into the bank. Mapping cash‑based payment methods to a separate cash clearing account or bank account helps ensure cash receipts are not mixed with EFTPOS settlements.
This approach is supported through the Payment Methods mapping section in Xero
Account Mapping and should be reviewed with your accountant to match your reconciliation practices.
Using Windcave payments with Xero
When using the Windcave payment integration, following the above payment‑type separation becomes especially important.
Windcave payments may settle differently depending on your Windcave configuration, and cash‑out reduces the cash balance rather than the invoice total. Mapping cash payments separately helps prevent reconciliation discrepancies and makes settlement reporting clearer.
Payment surcharges applied through Windcave are handled separately using the Surcharge mapping in Xero Account Mapping and may appear as additional accounting entries during reconciliation.
Prepayments
Prepayments (payments entered against jobs that have not yet been invoiced) are handled differently, due to restrictions on how we can transfer payments to Xero before the invoice is generated.
Prepayments will post to Xero as direct payments, using the Prepayments code you have set up in the Xero Account Mapping in Auxo Workshop, into the nominated bank account. For this reason, you may find Prepayments easier to reconcile than payments on closed invoices, as they will already appear in Xero in your bank account transactions, and can be immediately selected when performing a Xero bank account reconciliation.
Prepayments are automatically assigned to the Auxo invoice once the job is invoiced.
Payments completed directly in Xero
Payments completed directly in Xero will not need to be reconciled using the payment clearing account. Please contact your accountant for the standard reconciliation process.
Viewing Reports in Xero
In Xero, you can view the Customer Invoice Report by Paid or the Detailed transaction report – for the Payment Clearing Account for receipt reconciliations.
Reconciliations
You will need to use the payment clearing account in Xero:
Start by going into Dashboard in Xero and clicking on Manage > Reconcile Account.
Once in the reconciliation screen, you will find your statement transactions which have been imported from your bank feeds on the left-hand side of the screen. On the right-hand side of the screen, you will be able to match, create, and transfer transactions.
When reconciling, you will need to Create a transaction and link it to the payment clearing account.
Who: Name of the contact
What: Select the Payment Clearing Account you have linked to Auxo Workshop
Why: A brief description
When all relevant details have been entered, you can click on the Ok button to continue.
This will then remove the transaction from your reconciliation screen. Your Payment Clearing Account will now be credited and your Bank account (that you reconciled from) will be debited.
If all transactions receipted in Auxo Workshop have been reconciled in Xero, your Payment Clearing Account should balance and be zero. If a cheque is processed as a receipt in Auxo Workshop but has not yet been presented, it is best to leave it in the clearing account until it is presented in the bank.
See this help article from Xero for more information: Xero - Reconcile bulk payments