Reconciliation - Create Bill instead of Spend Money
It would be very useful to be able to generate a Bill when Reconciling, instead of just being able to "Spend Money". This would allow much better tracking of transactions, since money leaving an account via Spent Money is far less visible than when a Bill is paid.
Specifically:
When PayPal is enabled as a Payment Method, and a customer pays their Invoice this way, the associated PayPal account shows two entries in the Bank Feed ready for Reconciliation:
1) A transaction fee is deducted from the PayPal account.
2) The full amount of the payment into the PayPal account.
During Reconciliation, Xero will helpfully automatically match the transaction fee line with a "Spend Money" option, allowing single-click Reconciliation of this item.
However, if you do so, there is no record of it in the Payable Invoices Report, because it has never been entered as a Bill. Listing all "Spent Money" transactions is possible on a Bank Account by Bank Account basis, but I need things like bank service charge fees to be listed as bills under the name of the Bank - PayPal in this case - in the same way as my other bills from other suppliers are listed in the Payable Invoices Report.
I've searched as far as I can for a similar feature request, but did not find anything. I wonder, therefore, if I'm the only person in the world who needs this, or if my search powers have been affected by kryptonite today.
F R
shared this idea
Hi Faris, generally as a bill is received prior to payment so currently it's expected that the bill would already exist in Xero when reconciling.
Appreciate your example of where this could create efficiency and we'll get an idea of the support in this here. 🙂
In the meantime, depending on your type of sales you may find an integration in our App Store that could serve by automatically creating the transactions in Xero.
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F R
commented
Thank you.
I've found another example where this is needed.
One of our suppliers debits our bank account immediately when we place an order for an immediately-supplied online product. However, they do not generate and send out a bill for another 7 days, to allow for cancellations.
On the bill, the supply date is when the money was taken, and the tax date is the date of the invoice.
The reasons behind their strange methodology are complex (and kind of stupid if you ask me) ... but that's what they do.
The procedure I'd love to be able to follow would be to either:
Generate a Bill during reconciliation, giving it a date 7 days in the future since I know that's when I'll receive the actual bill.
OR, even better:
i) Spend Money during the Reconciliation
ii) When I receive the actual bill, forward that to my Xero email-to-bill address
iii) Convert/Merge the Spend Money entry with the actual Bill.Now that would be absolute magic!
(I'm aware that there are separate votes for being able to convert a Spend Money entry into a Bill, and I realise I've gone a bit off-topic, but I wanted to explain what I'm on about really)