Reconciliation - Allow credit notes to show and be selected on the find & match screen
Ability to show and can select credit notes on the find & match screen.
Purpose: To save time rather than having to go in and allocate the credit note against an invoice then going back to the bank reconciliation screen.

Hi community, first off thank you for the continued interest and feedback surrounding this idea. We’re continuing to build on the bank reconciliation experience in Xero and recognise the ways this feature will help improve the efficiency, flexibility and transparency of transactions in your business. Our team have done a lot of exploration into being able to surface and match Credit Notes when reconciling your bank account in Xero, and this is now in development.
We’ll shift the idea here into ‘Working on it’ and continue to update as there’s more detail of this to share.
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Claire Barning commented
Hi Kelly, can you please also add to the scope of this - the ability to select credit notes when setting up a creditors payment. So that way the remittance actually matches the payment, instead of having to allocate all credit notes against invoices (whether they are relevant or not).
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Jason Greenwood commented
Why would this NOT be the default in Xero? It is SO infuriating to have to figure out a workaround for this...
I always dread trying to reconcile credit notes as I never seem to be able to do it the right way.
Why should these be different to any other type of reconciliation?
Boggles the mind...
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Zahid Mustafa commented
On the bank reconciliation screen you cannot allocate a bank payment (or receipt) to a credit note when there are also several invoices to pay. I believe you have to allocate the credit note to an invoice before going back into the bank rec screen and allocating the payment. This is quite long winded.
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Julie Sutton commented
Petition for Xero Executives Regarding Alleged "Improvements"
https://central.xero.com/s/question/0D53m00009n36b9CAA/petition-for-xero-executives-regarding-alleged-improvementsShould start the same for the whole suppliers process!
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Tim Miller commented
PLEASE Xero, show that you actually care about your customers' needs and care about having a functional product and implement this extremely basic functionality!
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Amanda Smith commented
Lisa Winchester - I have posted to facebook page many times, mention it whenever I get the opportunity - so darned annoying, been mentioning it for easy 12 years
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Freedom Biz Solutions commented
This is one function I miss MYOB for and their payroll hahah.
It would be fantastic to incorporate this function and a big time saver 🙌. So annoying to have to always apply the credit before we can reconcile the transaction.
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Lisa Winchester commented
Perhaps we all need to post on social media since we're being ignored in here?!
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Melanie Annetts commented
Still no updates from XERO on the programmes poor handling of credit notes and what they intend to do about it! I don't want pretty looking reports I want an accounts package that works as an accounts package should with the basics!
No update on this thread since 2022 and no response at all on the following thread https://productideas.xero.com/forums/939198-for-small-businesses/suggestions/46674505-batch-payments-ability-to-include-credit-notes
There has to be a simple solution to this surely! So much time wasted and remittances sent to supplies are nonsensical! -
Karen Hollis commented
I would like to be able to add customer refund within bank reconciliation feed, including as a payment on account and not necessarily against a particular item (useful for returned cheques too).
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Devina McGarry commented
Hi there, it would be really great if we could see credit notes in the bank reconciliation screen rather than having to allocate them separately to invoices. It would make things easier if we could allocate them to payments.
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Nina Gritter commented
Add ability to reconcile payments to credit notes within the bank reconciliation screen
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Rachael Prideaux commented
allocate credit notes within the bank reconciliation screen?
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Paul Swinton commented
For everyone that struggles with this, there is a **** work round but may work for you.
Refund the credit notes as cash to the correct bank account and then tick include receivables on the reconciliation screen. It is still a **** and manual process but for ones like Alice B that have lock dates the credit note is included in the batch at the date of payment. Hope it is at least of some help!
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Alice B commented
In our business we set a lock date each month to close off for reporting - however after this point only an adviser role can go in and allocate credit notes on account from previous months to current supplier bills, even though they're already approved. Very frustrating and a waste of time!
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Cindy How commented
This is one issue I struggle with using Xero. The process of supplier credits is very difficult in the Xero software. I have suppliers who refund multiple credits with one payment and to try and deal with this through Xero is very painful, not to mention suppliers who we have accounts with, whose credits usually fall in the following month after the invoice and having to allocate credits to unrelated supplier invoices is just as confusing. Xero could make this a lot easier by fixing the issue in the software for their customers.
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Helen Annema Hughes commented
Hello Kelly
I have been following this idea from the start. It is very frustrating that this isn't standard. It makes no sense to link a credit to an invoice that has nothing to do with the original transaction even if we ignore the extra time taken to allocate a credit before the bank reconciliation. It also makes little sense when explaining this to clients especially when they were used to this as standard after changing from Sage for example.
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Martin Dent commented
Kelly, Why when you can see so much support for this change do you report that "at this time, there are no plans for adding Credit Notes to find and match"... This response translates to: "We hear you but we are going to ignore you". Why is Xero ignoring its customers? Are you suggesting that we should spend more time finding an alternative bookkeeping software than giving the detail feedback that we provide here?
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Lisa Winchester commented
I think we just need to keep spamming Xero with this. They're obviously not following this thread as it hasn't been updated in over 10 months. I've sent a copy of my supplier remittance to them today with the messy credit notes allocated to invoices that don't even relate.
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Nicola Taylor commented
To have no plans at all to make this painful process any more efficient is a disappointing sign of complacency from Xero.
Hopefully AI will drive innovation in this space as I'd like to see Xero with more competition to avoid this kind of shoulder shrugging over poor functionality that costs businesses considerable time and money