Matching Receipt Transactions in Xero
Wise Owl Legal integrates with Xero and allows you to prepare records using either a Cash or Accrual accounting basis.
As part of this integration, Wise Owl sends both the invoice and the receipt (payment) against the customer record in Xero.
When reconciling bank transactions in Xero, it is important that bank feed transactions are matched to the payment on the invoice, not to the invoice itself.
We recommend performing a quarterly review of your Debtors (Accounts Receivable) to ensure that balances remain consistent between Wise Owl and Xero.
For more information, see: How to reconcile and manage my Debtors
Xero Example
To record a payment in Xero, you must first enter the receipt in Wise Owl. For instructions, see:
Once the receipt has been entered and confirmed in Wise Owl, it will automatically sync to Xero.
When the corresponding transaction appears in your bank feed, Xero will suggest possible matches during the reconciliation process.
When reconciling the bank transaction, ensure that you match it to the payment that has been applied to the invoice, not directly to the invoice itself.
Matching directly to the invoice can result in duplicate payments, incorrect debtor balances, and reconciliation issues.
Incorrect
Xero is suggesting that the bank transaction be matched directly to the invoice.
Correct
Xero is suggesting that the bank transaction be matched to the payment that has already been applied against the invoice and synced from Wise Owl.