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I echo Alison Langdon's comment. I believe Xero has completely misundersood what is necessary here. Non accounting-trained people, making changes for non accounting-trained people does not make any sense in an accounting system that has been widely used and previously successful by proper accounting people.

Hi Kelly

Whilst I am sure that everyone who is a small business owner that has to raise credit notes for a client and does not know how to allocate these will love the improvements that you have made in this area, those of us who are not small businesses, and who receive credit notes from our suppliers would like to be able to send a document (Remittance Advice) directly from Xero that shows them what invoices we are paying and what credits we are taking up.

The ability to see the credits on our bank reconciliation does not assist our suppliers to match what we have paid with their documents in their accounting system, and they will not appear on our bank reconciliaton as we have already accounted for them when we have taken them up as part of our payment run.

Please let us check the box beside the credits in Purchases Overview, and enable Xero to add the negatives into the total. I wouldn't have thought that it would be this hard.

This is the second highest voted idea when selecting all ideas, yet it is still not available since it was raised three years ago.

It would be useful to get a response to where Xero is on this and why Xero thinks the current method is in anyway a good idea

I wonder if ANYONE is finding the new credit note matching useful?
It doesn't help me at all...please fix the problems we ask for.

Please make this an urgent step - you have now just released credit note matching in bank rec's but thats only half a step - this request is almost 2yaers now! When I have dozens of suppliers, and hundreds of invoices/credit each month I need to include credits in payments not reconciled through the bank - I make batch payments through the last two weeks, often in advance date to multiple suppliers at a time, therefore showing me a real-time running ledger allocated balance which is crucial for future cash flow based on actual cash not predicted just in case a customer pays late or not at all in these current conditions.

@ Zlat, I agree. I have suggested this in the past for other posts, too.

The important thing is to keep your post to facts and not sound like you are just 'having a winge'.

Feels like what everyone wants here is pretty simple - let bills and credit notes sit in the same run, show the net payment clearly, and still keep the audit detail in the background.

We’ve been working through this in Batchly with a few customers because it keeps coming up for anyone dealing with higher-volume payment runs in Xero.
Would be genuinely interested to hear how others are managing it today.

Credits only show if they're partially applied on remittances. If the credit pays off an invoice in full then they don't show at all. Also Xero are saying we can now match credits along with payments in the reconciliation section, however, this is a moot point because the remittance will then not match the payment at all because obviously we're paying the total invoice balance less the credit note balance. It's like Xero don't understand how businesses operate?!

I just can't understand why this technology is so difficult? When you're paying 100 odd invoices, why can't we select credits with negative balances as well? The remittance to the supplier would then match their statement which shows invoices and credits.

@Kelly, how are the developments going for credit notes being applied on batch payments?

It is 2026 and we need return some things we've been holding on to, waiting for Xero ;)

@debbie, applied credits show on the remittance advice for me, you may want to double check this.

Lately, the only way I have found to get a large corporation to do anything has been to take to socials or trustpilot. This makes new customers think twice about signing up so actually gets them where its hurts. I've also started emailing CEO's office which seems to get results

This is a basic accounting requirement and we have been asking for it for years!! Since I first posted around 2018! Very often the credit relates to a previously paid invoice, especially if returns are sometimes later, allocating it to a completely unrelated bill invoice is misleading - and it doesn't show on a remittance advice. This needs to be able to be selected in a batch payment run - not just on bank rec! Typically we use a monthly bacs payment run for dozens of suppliers- there is then only a single entry for this entire payment of usually >100 individual bills, on the bank statement

We're a firm of accountants and have numerous client moving to Xero, all with the same problem. They are finding allocating the credit first very inefficient, whereas in Sage 50, both invoices and credit notes appeared.

Also, when sending remittances, the credit notes do not appear, which is vital for clients.

This situation of not being able to include a credit note in the batch payment and just pay the supplier less the credit is absolutely ridiculous. Bad Deving Xero. This is a pretty basic Business requirement. Pull your finger out and get it done !!!!

Wow, this looks messy. Is Kelly even real? Xero just keep going down in my estimation :(

Sukhinder is aware as I have been in contact with her and she put me in touch with Head of Product for payments. He was kind enough to do a Teams with me and talk through plans and credit notes is looking like first half of this year.

What doesn’t help is Kelly on here not knowing or deliberately giving our false info that it wouldn’t happen when she closed the idea and said it wasn’t planned.

@ Annette Bremner - The CEO, Sukhinder, already knows and she doesn't care...
None of the executives do, about any of the issues front line staff and business owners face, not unless it fits their agenda.

The CEO needs to know about this problem. A concept critical to most yet being put off by XERO developers. What is available does not suffice.

The CEO wrote a Christmas email - his address is on there. (!)

This is a fundamental accounting requirement and we have been asking for it since I switched to Xero in 2017.

Anita, it's only in Beta testing at the moment, but I suspect the need for the deveopers to actually interact with the process has revealed some of the flaws we've been trying to tell them about.

Here's an article on it https://central.xero.com/s/article/About-auto-bank-reconciliation-powered-by-JAX