Transactions - Allocate dishonoured and reversed to customer's account
I am not happy with the treatment of dishonoured/reversed payments on Xero when it comes to debtors/customers (and similarly creditors/suppliers) (see attached support screenshot).
Dishonoured payments must be processed via the accounts receivable and payable channels as is the custom on any other accounting package.
The customer's records and statements must reflect when payments were dishonoured (true refection) and it should not be handled outside of the customer's module as Xero is currently doing (by deleting the original payment from the customer and allocating it a GL account and then allocating the dishonoured reversal to the same GL account).
The original payment must stay allocated to the customer's account and the reversal also allocated to the customer account.
This is very standard accounting practice and very strange that this is yet another thing that Xero chose to do differently and in so doing causing great unhappiness with our clients.
It's a long shot, but Xero please develop this urgently !!
Marco Brown
shared this idea
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Treasurer Tamborine Business Chamber
commented
I followed the instructions given here: https://central.xero.com/s/question/0D53m00007BeuwnCAB/how-to-record-a-dishonored-bank-transaction-in-a-batch-payment by John Knight
I had a batch payment and left it untouched.
I then received and spent money recorded against the contact.The solution is simpler than Xero's recommendation and shows in the contact's transaction history.
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Shannon McMonigal
commented
Yes, I agree! Especially when dealing with a large bill batch, and one payment has dishonoured, it would be so much easier to find the bill & record a payment reversal, then process another payment against it, rather than having to unreconcile the existing batch, find the payments within the batch, create a new spend & receive money, re-reconcile the payment, etc. It's such a waste of time that could be seriously simplified.
