Monthly Archives: December 2017

How to: Process a purchase invoices (Bill) into Xero

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Use the + sign (“Bill”) or the “New Bill” button to quickly create a new bill:

Screen Shot 2017-12-12 at 15.26.59

You should now drag and drop a copy of the invoice onto this page, once you have done this it should look like this (you can also add a file previously uploaded to the Xero Library):

Screen Shot 2017-12-12 at 15.27.27

Now you should enter the details of the invoice, making sure you enter ALL of the following:

  • Who the invoice is from in the ‘from’ section
  • The invoice date and due date (if there is no due date then please enter one at the invoice date) in the ‘Date’ and ‘Due Date’ sections
  • The invoice or reference number in the ‘Reference’ section
  • A brief description of what the invoice is for (i.e. ‘advertisement campaign’) if the ‘Description’ column
  • Enter the value of the invoice in the ‘Unit Price’ column
  • If there is VAT on the invoice (and you’re VAT registered) then you can select ‘Tax Inclusive’ from the dropdown menu ‘Amounts are’ and then select the rate of VAT (usually ‘20% VAT on Expenses’) in the ‘Tax Rate’ column, then please ensure that the VAT listed on the invoice matches the VAT calculated by Xero. If you’re not VAT registered, enter the gross amount and leave as No VAT.
  • Select the account which the invoice relates to in the ‘Account’ column, if you are unsure then select ‘General Expenses’ – or save as a draft and ask Love Accountancy

The screenshot below should be a guide to what information needs to be entered:

Screen Shot 2017-12-12 at 15.27.48

Once you have finished click on the approve button, the invoice should now be added to Xero!!!

How to: reconcile the bank in Xero

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From the Dashboard, your bank accounts are shown on the left. Click on the “Reconcile X items” to begin reconciliation:

Screen Shot 2017-12-12 at 15.23.15

You should now work down the list and reconcile the items you can (the items imported from your bank statement appear on the left):

  • If Xero can match the item to a purchase or sales invoice then it will be highlighted in green on the right (see the second transaction below), make sure to check that this is the correct invoice that is getting matched to the transaction before selecting ‘OK’.
  • If you think you can match the transaction to a purchase or sales invoice (but Xero is not highlighting it in green), then you can select the ‘Match’ tab on the right and then select which invoice to match it to.
  • If the transaction is a bank transfer (to another bank account which is on Xero), then select the “transfer’ tab on the right, you can then select which bank account this is transferred to/from.
  • If you do not have an invoice but you know what the transaction is, then under the create tab you can enter in the details of the transaction (see the third transaction below). Make sure to enter ‘Who’ (e.g. BT), ‘What’ (e.g. telephone and internet) and ‘Why’ (e.g. telephone bill for august). Then select ‘OK’.
  • If you do not know what the transaction is or you do not know how to reconcile it, then click on the ‘Discuss’ tab on the right, then type in a description of what the item is and click ‘Save’.

Screen Shot 2017-12-12 at 15.22.43

Once you have fully reconciled the account the following screen should appear:

Screen Shot 2017-12-12 at 15.22.49

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