In Xero, this is done on the Reconcile tab, by matching bank statement lines from your bank account on the left against transactions in Xero on the right. Statement lines are the bank transactions imported from your bank account via a bank feed or they’re manually imported.
What is a Xero transaction?
So the transaction in xero is a payment recieved that sends from my POS Vend at the end of each day. Normally, the amounts are deposited in full, but that day I had to deposit some of it before the register was closed.
One way to think about this is statement lines are the bank transactions imported from your bank account via a bank feed or they’re manually imported. When they’re in your online banking, they’re referred to as bank transactions, then when they’re imported into Xero we call them bank statement lines. Transactions are created in Xero.
What is Bank reconcile in Xero?
Bank reconciliation is the process to confirm that all the transactions in your bank accounts are recorded in your business accounting records. In Xero, this is done on the Reconcile tab, by matching bank statement lines from your bank account on the left against transactions in Xero on the right.
Look for a Reconcile [number] items button on the Bank accounts screen or the Dashboard in Xero. You’ll see this reconciliation button whenever statement lines are imported from your bank account into Xero ready for you to reconcile.
One source claimed transactions are created in Xero. These could be invoices, bills, expense claims or cash transactions. The aim of bank reconciliation in Xero is to match each statement line in the bank account to an existing transaction in Xero, or create a transaction during the reconciliation process.
How to reconcile bank statements?
Search for the transactions in the main bank account, and Remove and Redo them. This will then throw the statement line back to the Reconcile Tab.
The bank account panel on your dashboard shows how many bank statement lines have been imported and need to be reconciled. If Reconcile [number] items doesn’t display, it indicates there are no bank statement lines to reconcile. For each individual statement line on the Reconcile tab, you can either:.
Why can’t I reconcile a deposit to Xero PayPal?
If there is a transfer from your current account into Paypal and then that transaction appears in your Xero Paypal account as a deposit, then you cannot reconcile it to a bill, you can only mark it as reconciled and so the transfer doesn’t do anything, it simply remains a dead end and does not get associated with any cost account.