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Such a "Renconcile" button and also its related "Show unreconciled only" checkbox would then ALSO need to be on: Charts of account enquiry and any report filter that lists ledger account transactions, and similarly any data tables exported (to likes of DataSights etc).

The "show/hide unreconciled" checkbox should also be something that we can choose to default centrally yes or no before we even enter the reports and enquiry screens. And then, we can choose on a specific instance to tick/untick what has then defaulted (this would make it even more efficient).

Envisaged usage: mainly on unlocked B/S a/c's but also on P&L.
I am thinking: unlocked ledger accounts either:
1 naturally with high-volume, every-day use (say, logistics accruals), but also
2 simply those accounts amassing a lot of transactions, possibly now over many years.

Simply put, by "unlocked", I mean NOT ledger accounts that relate to Xero or /other-api modules. This is NOT intended for the likes of: banks, debtors, creditors, vat, fixed-assets, stocks, etc – ie: NOT for ANY ledger account that is more correctly reconciled by a Xero/other-api reports elsewhere. You could put it on them but it likely will not be used on those a/c's.

We need the ability to "settle against each other" "perfectly-offsetting" ledger account transactions (ie: ledger account transactions on the SAME ACCOUNT that sum to EXACTLY 0.00 in FUNCTIONAL currency, NO exceptions). We also need ability to "UNRECONCILE" past settlements if required.

If transactions same a/c sum to zero in base currency, and we want to confirm to Xero that they do relate to each other, we need an easy way of then grouping it together and setting all of that to one side. Ideally, we would require a memo note field to describe what we're doing and also, an audit trail on that.
This allows us to maintain a much more manageable list of truly-outstanding transactions that form the account balance, and helps us post variances, flag together everything (all the related accruals, matchings and variance-postings), and then have a "show unreconciled only" checkbox that shows just must smaller number of transactions that make the balance. It would be preferable if it also then automatically includes "prior-years" unreconciled transactions.

This functionality would mean that our view of Xero ledger transactions forming the balance can easily be kept relevant, reduced, and a lot more more recent.
And this then means that we aren't forced to suffer having to see and extract pages and pages of irrelevancy if we choose to stay with Xero, yes?....... And we can more easily avoid having to re-work though off-Xero files and paperwork, potentially re-doing something that someone has already done...

This functionality would be an absolute game changer for a great many users/accountants both in the business and in audit firms etc, and definitely, a real improvement (and a real point of difference) in the current Xero "offering". Something, they seemingly never knew they needed.

I really do consider that this functionality is actually conspicuous by its absence. I therefore have to guess that Xero MUST have ALREADY considered providing this at any earlier point but then, excluded it for some reason. I am interested to know why in that case (maybe auto-reverse/restate method in use). If the case, I am hoping that perhaps now revisit this, bite the bullet and now make a really sensible, truly-useful investment. It just finally allows clients to put the past in the past on their ledger accounts, just like they already can in other BILL/INVOICE/BANK/VAT areas of Xero.