Tags: Reconciliation Summary Sync
Reconciliation process when invoices are synced as summary by Xero bridge app
This article provides the details on reconciliation process when invoices are synced as summary.
1. For the reconciliation of Shopify payment method, our app creates the summary invoice on the basis of payout received from Shopify and our app also syncs the Shopify payouts and fees so reconciliation will be easy and you need to click on a match/OK to reconcile.
2. For the reconciliation of other payment methods than Shopify payment method, based on your transfer/payout frequency you will need to reconcile bank feed entry against one or multiple daily invoices created by our app.
2.1 Payment methods for which payout is received after few days. i.e Payout amount includes the payment of orders from more than one day.
We have a suggestion to make the reconciliation process easier.
- If we take the example of PayPal payment method as other payment method, when you transfer the funds from PayPal account to the bank account then make the transfer covering all the transactions of a particular date because our app syncs the summary considering midnight as cut off date. If you transfer the covering all the transactions for a particular date i.e up to midnight time then it will be helpful in the reconciliation process.
- For example, transferring the funds from PayPal to the bank account, covering all transactions from 1st December will be helpful to reconcile the summary invoice created for 1st December.
2.2 Payment methods for which payout is received daily. i.e Payout amount includes the payment of all orders from a single day.
- If the payouts are received every day for payment methods other than Shopify payment method then the match will be easily found because our app syncs the summary on a daily basis for each payment method (Except Shopify payment method) considering midnight as cut off date.
- For example, there are 3 Afterpay orders on 15th February with an amount £100, £200 and £300 respectively. Our app will sync the Afterpay summary for 15th February with an amount £600. You may receive the payout of 15th February with a delay of 1-2 days depending on the payout frequency so for example you have received the payout on 17th February for the orders associated with 15th February.
- In this case, there will be a difference in the amount of summary and the payout received because Afterpay will deposit the payout in your bank account after deducting the fees. Let's say, you have received the payout with an amount £550. You will have to find a match between the summary to the relevant payout entry from the bank feed to reconcile. For the example we have mentioned, you will have to find the 17th February payout to reconcile the 15th February summary. For the difference of fee amount £50, you will have to create the adjustment entry directly in Xero. Once the delay of number of days is known then it will be easy to find a match.
- Our app does not have an access to fees for payment methods other than Shopify and PayPal so you will have to adjust the fees manually for payment methods other than Shopify and PayPal while doing reconciliation in Xero.
- Our app syncs the summary on a daily basis. It is possible that you may not receive the payouts on weekend so payout amount for the orders of Friday, Saturday and Sunday will be received on Monday. In this case, you will have to reconcile the summaries from Friday, Saturday and Sunday with the relevant payout. In this case, there will be 3 summaries against the payout received for these 3 days' orders to reconcile.