Reconciliation - Automatically recognise & match payroll transactions
When reconciling bank transactions,
It would be great if payroll transactions offered an automatic reconciliation in the same way that a batch payment of bills gives an auto option.
Trent Ross
shared this idea
Hey community, thanks for your continued interest and feedback on this idea.
Right now, you can set up bank rules to code future payroll payments, or turn on Suggest previous entries so that Xero suggests a transaction each time.
If there's any future changes we will let you know on the thread here. Thanks
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Optimus Fintech
commented
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Chris Puxley
commented
I was astounded when transitioning to Xero payroll that I found myself manually having to create this manually.
Surely the benefit of having your payroll in your accounting software is that this is created. We are now actually in a worse situation from the perspective of manual admin than when we imported the payroll using 'payrun' functionality from other software.
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annette colton
commented
Please could Xero automatically generate an invoice for the total amount of PAYE, NI, student loan from Payroll, and a separate invoice for CIS due to HMRC every month, coded to the correct "payable" accounts, which can then be reconciled with the single payment we make to HMRC?
It would be a real help not to have to sort out manually how much of each combined monthly payment should be assigned to each of at least 4 payable account. -
LEONARDO MONZON
commented
Hi, I just submitted a case explaning this, it does not make sense to create all the employees again in a new transaction everytime I need to reconcile payroll payments. Xero already knows who were paid and what amount of money each one, this should be an automated transaction that allows us to reconcile easily.
How are the big companies reconciling this transactions? I just paid 10 peorple and I had to create 10 transactions individually to match the total amount. I believe Xero already have the tools and techonology to make this real. Please help us with that.
Thanks.
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Amber Wright
commented
This is payroll and bookkeeping suggestion.
It would be good that once the spend money to pay the employee comes out of the bank account, Xero recognises this to the net pay in the pay run and matches this where it's meant to go. The same with the P32 liability - once the tax has been paid to HMRC and appears in the bank reconciliation page, Xero recognises that this payment matches the month's liability.
I know that there are bank rules that can be created to do this, but it's good to check that the employee has been paid the correct amount to the pay run (so the reconciliation line goes green in the reconciliation page).