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Community > Accounting >

How can we reconcile batched unpaid direct debits?

Started by Michelle Easterbrook -   in Accounting

Every week we have anywhere between 2 and 250 unpaid direct debits, which are processed on a different accounting system. These are then batched and processed through Xero but the individual transactions appear on the bank statement. I don't think I can create a rule as these are always from different people. Does anyone have any ideas?
Michelle, there is no easy way to do this. What do you want Xero to show after process? Do you want to show a new unpaid debtor invoice, or just code the fact that the DD has bounced? I see a CSV batch file in your future!

Peter McCarroll  

@Michelle Are you putting the transactions in Xero as invoices at all? The system is designed to match statement lines to items already in Xero. However if not invoices, then you don't need to enter anything into Xero, you can just wait for the statement lines to be imported and code them at the time. Quite a big job if it's 250 I know! These seem like one off direct debits? Are there any other distinguishing characteristics of the transaction besides payee? A common amount, that means you could create a rule, perhaps using a value range? Sorry to be vague but I don't have quite enough detail to know your exact situation - if you could share a little more (customers/supplier transactions etc) then maybe someone else is in a similar situation and can help.

Catherine Walker (Community Manager)  

Thanks Catherine - this is a bit of an unusual one I think because we use a separate system for processing our direct debits - so no invoices are raised in Xero.
We can't just code them when they come into Xero because we need to know we have entered the correct amount into the other system.
So we have a control account set up in Xero. We then batch the items from one system and process journals to the control account in Xero.
We can't import from the other system (Enterprises MRM) as we also have direct credits (approx 9K a month) although these are paid into our account as a batch amount. So these aren't causing a problem in Xero.
Can you create a rule just on the transaction type - I notice in Xero that these particular entries come through the bank statement as a different transaction type?

Michelle Easterbrook  

I think something that might work for you is a little 'rules' trick... you can set up a rule that behaves like an 'everything else' rule... there is a hierarchy to the rules you setup. I imagine most of your income consists of these batches? So if you put a rule in for every other type of receive money - then you could code 'everything else' to your income account (or clearing account if you want to reconcile against the other system). Let me know if you want more details as I would need to play with this a bit more to see if it would work in your situation.

Tina Kaye  

Thanks Tina - that certainly sounds like it could work! This is not income but outgoings which could actually work better because the majority of the entries in this account are income!

Michelle Easterbrook  

Oh great - I missed what you meant by unpaid initially - please let us know if it works for you :) or if you need me to help.

Tina Kaye