Payments between Auxo Workshop and Xero
Payments between Auxo Workshop and Xero use a Clearing account method. All payments are posted into a Xero clearing account. When reconciling your Xero bank account, the clearing account is used to map to any monies received for invoices paid in Auxo Workshop.
The payment clearing account Auxo Workshop will post payments to is set up in the Xero integration setup page of Auxo Workshop.
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