Automatic reconciliation in Xero for Single and Repeating Invoice payments through IntegraPay

Transcription

1 Automatic reconciliation in Xero for Single and Repeating Invoice payments through IntegraPay IntegraPay has simplified the reconciliation of single Sales Invoice and Repeating Invoice payments by automatically reconciling all payments from both credit / debit card and bank account, in Xero. When your customer pays their online invoice by credit / debit card or bank account, the invoice is recorded as Paid in Xero as soon as the funds have cleared. This occurs either as soon as payment is made by credit or debit card, or once cleared funds have been settled to you for bank account payments. You can then automatically reconcile Invoices and bank statements in Xero, by using a Clearing Account and Bank Rule. It is that simple. This guide outlines when an invoice is recorded as paid in Xero and the simple steps to automatically reconcile Invoice payments and bank accounts in Xero, by setting-up a Clearing Account and Bank Rule. Once you have an active IntegraPay account with access to the IntegraPay Online Payment Management Console, follow these steps to enable automatic reconciliation. Page 1 of 7

2 Invoices recorded as PAID in Xero IntegraPay updates the invoice as Paid in Xero immediately once the payment has a status of Cleared with IntegraPay. The timing of this will depend on two things: Sales Invoice 1) Invoice Type single Sales Invoice or Repeating Invoice 2) Payment method card or bank account If the customer chooses to pay a single Sales Invoice by credit or debit card, the invoice will be updated as Paid in Xero immediately, because the transaction is performed in real-time. If the customer chooses to pay by bank account, the invoice will be updated as Paid in Xero, once the funds have settled. This is generally 2 business days, but will depend upon the clearance settings for your business in the IntegraPay Console. Repeating Invoice (recurring Direct Debit) A business can set up a customer on Direct Debit simply by sending their customer a Xero Repeating Invoice. The first payment will occur in the same manner as a Sales Invoice above, regardless of the payment type. Card payments occur in real-time and bank account payments are settled according to your settings in the IntegraPay Console. Subsequent payments of Repeating Invoices are batched and processed daily, on the Due Date. Xero is then updated as soon as the transaction has been settled. For both payment types, this may be up to two (2) business days. (If you require more information about how Repeating Invoice payments work, please refer to the Xero Direct Debit Process Guide). Unsuccessful payments You will receive regular transaction reports from IntegraPay. In the event a customer s payment fails, you will receive a rejections report notifying you of this. The IntegraPay system will not record the invoice as Paid in Xero. The invoice will simply remain as unpaid and be highlighted as overdue, as per normal Xero settings. Page 2 of 7

3 Automatic Reconciliation At the time IntegraPay marks the Invoice as Paid in Xero, you can elect for IntegraPay to automatically confirm the amount requested on the Invoice is the same as the amount cleared in the IntegraPay Console and mark the Invoice as Reconciled in Xero. For a business that issues a large volume of Sales Invoices or has a large number of customers on Repeating Invoices, this feature will save the business an enormous amount of time. There is no need for the business to manually reconcile each individual invoice. Automatic reconciling of bank statements IntegraPay combines the monies collected into one bank settlement. In order to simplify the reconciliation of automatically reconciled Invoices with IntegraPay settlement deposits, the business should create an IntegraPay Clearing Account for all payments to be assigned to. A Bank Rule should then be set-up in Xero to link the IntegraPay deposit in the business bank account to the Clearing Account for bank statement reconciliation. When using a Clearing Account the process is: 1. IntegraPay processes invoice payment 2. IntegraPay updates the invoice as Paid and Reconciled 3. IntegraPay inserts an invoice line item into the IntegraPay Clearing Account 4. Business imports bank statement 5. Business performs Bank Reconciliation. The Bank Rule identifies the deposit from IntegraPay, Xero enters a line item into the IntegraPay Clearing Account and Bank Statement is Reconciled. 1. IntegraPay 2. Paid and Reconciled 3. IntegraPay Clearing Account 5. Bank Rule 4. Bank Account Inv 001 $100 Inv 001 $100 Inv 002 $100 Inv 002 $100 Inv 003 $100 Inv 003 $100 Balance $300 < - -> IntegraPay $300 The Bank Rule will automatically identify a deposit and suggest applying this value to the IntegraPay Clearing Account. By clicking OK, you have reconciled your bank account with your IntegraPay deposit. Page 3 of 7

4 Setting up a Clearing Account In Xero 1. Go to the Settings tab 2. Click Chart of Accounts 3. Click +Add Account The Add New Account dialog box will appear 1. Click on the Account Type drop down and select Current Asset 2. Set a unique Code as INTEGRAPAY 3. Enter the account Name as IntegraPay Clearing Account 4. Enter a Description if required 5. Click on the Tax drop down and select BAS Excluded 6. Click Enable payments to this account 7. Click Save Page 4 of 7

5 Once the clearing account has been created, log in to the IntegraPay Console 1. Go to the Configuration Settings 2. Click Change Account 3. Click on the Select New Account drop down 4. Click IntegraPay Clearing Account 5. Click Save Account Now all payments collected by IntegraPay from a Xero invoice will be processed into this account. Setting up a Bank Rule A Bank Rule automates the process at the time of performing Bank Reconciliation. In this case, a Bank Rule will be set up to recognise any deposit into the business bank account with the reference of IntegraPay. Credit is then applied to the IntegraPay Clearing Account. To set up a Bank Rule: 1. Log in to Xero Page 5 of 7

6 From the Dashboard 1. Click on the Manage drop down menu in the businesses account details 2. Select Bank Rules 3. Click on the + Create Rule drop down 4. OR click Receive Money Rules tab 5. Complete the Create Rule as follows a. Select All from When money received on the Bank Statement matches b. Click Payee from the drop down menu c. Click contains from the drop down menu d. Type in IntegraPay Page 6 of 7

7 e. Click on The Contact will be drop down menu f. Click an existing or new contact g. Type in IntegraPay h. With the remainder, type in Invoices i. Click INTEGRAPAY IntegraPay Clearing Account from the drop down list j. Click BAS Excluded from the drop down list k. Type in 100% l. Set the reference as from the Description from the drop down list m. Under Target a bank account i. Click on the Run this rule on drop down menu ii. Click your business account n. On Give the rule a title, type Income from IntegraPay o. Click Save Your business is now set-up to easily reconcile bank statements and invoices. For instructions on setting up IntegraPay as a Payment Service or payments for Repeating Invoices, please see the Initial Setup Guide or Direct Debit Process Guide documents. Page 7 of 7