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Community > Using Xero >

Reconciling Transfers With Different Sent/Received Dates

Started by Tom Ewer -   in Using Xero

Hello,

I've got a bit of a head scratcher (for me at least!).

It's an issue with two accounts: one Lloyds and the other PayPal. I sometimes transfer money from Lloyds to PayPal. The strange thing is, the transfer dates don't match.

For example, I have a transfer dated leaving Lloyds on 30th April, but it arrived in my PayPal account on 28th April. On matching the transfer, the PayPal transfer transaction date was changed to 30th April, which meant that the balance no longer reconciled on 28th April (because the transfer transaction was missing).

Is there a way to set two dates for a transfer: one the date that the transaction left one account, and the other the date the transaction arrived at the other account?

Cheers,

Tom
Hi Tom. There is no way to set a different date in Transfers. This isn't usually a problem as it is viable to match a statement item against a past or future dated transaction. When you say that the PayPal date "changed" to the 30th, my guess is that you reconciled the Lloyds transaction first. This created the transfer transaction in both accounts dated the 30th. Then in PayPal you matched the statement line from the 28th (I have no idea why Paypal gave it this date) with the extisting transaction dated the 30th. Technically, it didn't change the date to the 30th. The Statement line is still dated the 28th (you can see that in the Bank Statements section), but the transaction it is matched to is dated the 30th (because that was the date of the first leg created).

Your general scenario comes up often with paying credit card accounts. The payment leaves the cheque account one day, but isn't recorded in the credit card for a day or two.

Hope that this helps
Peter.
I'm an NZ Chartered Accountant, Xero Certified Advisor and Xero's 2012 Most Valuable Professional. Please contact me for qualified accounting and business support: www.business-express.co.nz or phone +64-4-282-0306 or +1-647-367-0876.
 

Peter McCarroll  

Hi Peter,

Thanks for taking the time to respond; I really appreciate it. I'm going to look into this again and see if I can figure it out.

Cheers,

Tom
 

Tom Ewer  

Okay, so here's the problem as it might occur (semi-hypothetical).

I import April's statements for PayPal and my Current Account.

I get my CA to reconcile and match the statement balance, no problem.

However, there is a transaction dated 28th April on PayPal that is dated as 2nd May in my CA.

The transaction already exists in PayPal, so as part of reconciliation, I define it as a transfer to a Lloyds account.

Now my Lloyds account no longer matches the statement balance, as there is a new transaction listed on 28th April (i.e. the transfer from PayPal).

So that's one problem. The other problem I'm concerned about is that when I import May's statements, am I going to create a duplicate transaction in my CA for the 2nd May transfer?
 

Tom Ewer  

Hi Tom.

First, the reconciliation difference in Llyods is a perfectly normal reconciling item. Your CA probably won't have any problem with it. If you want to avoid it, then don't reconcile the PayPay entry first - just leave it a few days and then reconcile the Lloyds transaction first. This will leave the reconciling item in the PayPal account.

I can't speak to your second problem as I don't know what you mean by "in my CA."
 

Peter McCarroll  

I haven't added transactions for May yet. However, because I have reconciled the PayPal transactions for April, the transfer from the CA to PayPal that is dated 2nd May in the CA is already listed as a transaction, dated 28th April.

So, when I come to import a spreadsheet for May's CA transactions, I am concerned that it will import the transfer again, because it will be on the spreadsheet listed 2nd May (i.e. when it is listed as being transferred in the CA, even though PayPal received the money on 28th April). I will then have a duplicate transaction.
 

Tom Ewer  

By "CA" do you mean "Current Account" (I was thinking "Chartered Accountant")? As you suggest importing transactions I guess that you do not have bank feeds sending daily transactions (you should look at this option). If you have done things correctly, the transaction dated 28/4 in the Current Account should not be reconciled (it should have an orange box next to it, not a green or black tick). When you import the May statement (which will include the 2 May transaction) it will then match against the 28/4 transaction (if it doesn't you may have to search for it).

You have reached my limit of being able to help you remotely. I suggest that you contact Xero Support for more direct assistance. For a small fee I can help you live.

Peter.
I'm an NZ Chartered Accountant, Xero Certified Advisor and Xero's 2012 Most Valuable Professional. Please contact me for qualified accounting and business support: www.business-express.co.nz or phone +64-4-282-0306 or +1-647-367-0876.
 

Peter McCarroll  

Thanks Peter, I think I've figured this out.
 

Tom Ewer