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Reconciling with a clearing account
Reconciling with a clearing account

How to add and reconcile the clearing account in Xero

Jessica Kwok avatar
Written by Jessica Kwok
Updated over a week ago

Setting up a clearing account

Because Preno needs a bank account to map payments to, it won't be possible to send payments to a current asset/liability clearing account.

You can configure a clearing account in Xero that accepts payments, but it won’t work with our integration. Preno needs a bank account to create prepayments (deposits).

If you would like to use a clearing account to reconcile your transactions, you will need to add a new bank account in Xero, and call it 'Clearing Account'.

We would recommend having all the payments go to the clearing account in order for it to be easier to reconcile.

Reconciling the Clearing Account

1) Locate the bank statement line in your main bank account

2) Click on the Transfer tab and transfer the payment into your Clearing Account.

3) If there is a merchant fee included in the amount received, you can create a Spend Money transaction for the fee in the Clearing Account.

To create a Spend Money transaction, click the + icon on the top right hand side, and click Spend money.

4) OPTIONAL: You can manually mark the account transactions in the Clearing Account as 'Reconciled' by going to Accounts > Bank Accounts > Clearing Account > Manage Account > Account Transactions, select all the transactions and clicking More > Mark as Reconciled.

If the Mark as Reconciled option doesn't appear, click the question mark icon on the top right hand side while in the Account Transactions page and click 'Enable Mark as Reconciled'.

If everything adds up correctly in the Clearing Account, the Statement Balance and Balance in Xero for the Clearing Account should equal 0.

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