Overview:

The Account transactions tab displays the list of transactions (unreconciled and reconciled) within the bank account.

The status column shows if the transaction has been reconciled or not.

Not yet reconciled - transaction exists in Xero (i.e. you have created a bill and applied payment manually, or there was no bill created but you have used the Spend Money to record payment) and needs to be reconciled to bank statement line using the Reconcile tab.

Reconciled - was reconciled using bank feeds or imported bank statements.

Reconciled - was manually reconciled, meaning the previous status was Unreconciled (colored orange) but you have marked as reconciled by using the option Mark as Reconciled. This also means that the transaction never appeared in the Reconcile tab.

How to remove double ups:

On a weekly basis check for (and, if any).

Fix the following:

• Cheques more than 1mo old
  

• Others (internet banking, online payments, etc.) more than 7 days

Most common reason for Unreconciled is when we recorded the transactions twice.

Tip to avoid double ups:

Do not apply manual payments in the created bill unless you issued a cheque. Other modes of payment usually come out on the same or next banking day, hence, you don’t have to worry that you’ll make double payment.

FOR CHEQUES 1MO + OLD

If you've issued a cheque that hasn't been banked, find out how to record the cheque as unpresented in Xero. You can then make a replacement payment, if required. This process will preserve the audit trail and reporting history.

You might want to add notes to the original bill, and transactions you are now creating, to explain the steps you've taken. This will provide a full history.

Add notes to transactions and contacts

We'll use the example of a cheque paying a bill. The cheque is now 6 months old and the bank will no longer accept it. We'll use 2 scenarios:

· Record the original cheque as unpresented, no replacement cheque issued

· Record the original cheque as unpresented and issue a replacement cheque

Record the original cheque as unpresented, no replacement cheque issued

Follow these steps:

1. Note account details from the original bill

2. Create and import bank statement lines

3. Reconcile the imported bank statement lines in Xero

Note account details from the original bill

1. Go to Accounts, then Purchases.

2. In the Bills section, select Paid.

3. Find the original bill and click to open it.

4. Note the amounts in the bill, and the accounts in your chart of accounts they were posted to. In this example they are:

·Purchases 1000.00

·GST 150.00

Create and import bank statement lines

1. Prepare a bank import CSV file with 2 transaction lines. One line is a receipt, the other a payment.

2. Enter the following data for each line:

·Date - use the date on which you are recording the cheque as stale. In this example, we are using the date 6 months after the date of the payment. That is, 10 October 2014.

·Description - a short description of the transaction.

·Amount - the amount of the unpresented cheque. One amount will be positive and the other amount negative.

The bank import file will have no effect on the bank statement balance in Xero.

1. Save your CSV file

2. Import your file into Xero

Reconcile imported bank statement lines

1. Go to your bank reconciliation by selecting Accounts, then Bank Accounts.

2. For the account where you imported the bank statement lines, click Reconcile (n) items.

3. Find the spent amount transaction you imported. Reconcile it to the original cheque payment.

4. Find the received amount transaction you imported. Make sure you are on the Create tab.

5. Enter account and amount details from the original bill. Click Add details if you need more lines.

6. Click OK or Save Transaction.

Once you're able to reconcile the cheque entry it, it will be gone in the ACCOUNT TRANSACTIONS tab.  

No replacement cheque will be provided to the customer not unless they ask for it months after we do this process.

Since we marked that invoice as paid upon entering the refund cheque, that payment will be reversed upon reconciling.  
It will then appear under AWAITING PAYMENTS tab waiting to be scheduled for payment and paid again.  

But since no replacement cheque will be provided to the customer, we will not be adding planned date nor pay the entry.  We just have to change the invoice amount to 0 to remove it under the awaiting payments tab.

Send ticket to manager to cancel the cheque with the bank.