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General Ledger - Account reconciliation function

For accounts where transactions are posted and then additional transactions clear those transactions it would be great to have a reconciliation feature where these can be matched off (only when they net to zero). The the remaining unmatched transactions make up the account balance. This would save us hours each month.

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Carolyn Haley shared this idea  ·   ·  Report…  ·  Admin →
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Gaining Support  ·  AdminPaul Hodges (Admin, Xero) responded  · 

Hi, thanks for sharing this idea. This might be useful for situations such as suspense accounts, where entries are intended to net each other off.

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  • Jeremy Rigby commented  ·   ·  Report

    yep, fully agree!
    We have several balance sheet logistics accrual accounts. Some of them carry hundreds of manual journal "accrual" entries per month from all the DEAR Inventory/Cin7Core order types (sales, purchases, stock transfers, production assemblies).
    Subsequently and separately, we then get further sets of transactions hitting these accounts over the weeks and months, ie: a plethora of supplier bills that we have to split the bills into separate lines and code and describe very carefully indeed because each account carries more than one service type (freight, handling, port fees, discharge, etc etc), and we ALSO have to quote all our order numbers on there too, so that we can have a chance of matching "purchase cost versus accruals".

    As part of that matching check, it is natural for us to then journal out all the variances that we have found. After making that posting, we have the LedgerAccount situation as follows, for example:
    (300 x Accruals) + "60 x Purchases" +/- "30 x VariancePostings" = Zero

    There is no way in Xero to leave "the past in the past" as regards "ledger transactions".

    The ability to "settle ledger transactions against each other other where they are zero-balancing within the same account" is invaluable, and accordingly features in all other ERP's etc. Xero being a very smart package, it is conspicuous by its absence.
    Come on Xero. Sort it out.

  • David Wright commented  ·   ·  Report

    Would be very much helpful across the balance sheet - but particularly those creditor areas such as PAYE/NIC/Net Wages/Pensions control accounts.

    Perhaps you could consider a setting within the Chart of Accounts to mark something as a "user defined 'control account'" which then enables the 'ticking' options?

  • ReVision Accounts commented  ·   ·  Report

    HI,

    Have you tried the rechound App in the app store. it does exactly this

  • Daniel Olive commented  ·   ·  Report

    I very much support this idea.

    It is very common within other accounting systems that a nominal ledger account can be reconciled. This is especially useful for accounts which have reversing entries, such as prepayments an accruals. It's a massive time saving feature, and actually essential, if the user wishes to see the make up of the balance on an account. (e.g. which prepayments are outstanding)

    Other accounting systems (such as SAP Business One) allow transactions to be ticked, thus marking them as reconciled. Then within the account transaction report, it is possible to run a report either reconciled (showing open balances) or unreconciled (showing history transactions).

    If Xero could add a simple functionality like that, it would be brilliant

  • Perry Farrell commented  ·   ·  Report

    This would be incredibly helpful for our business and the previous business I've worked on before.

    I've heard this is possible in SAP Business One?

    Great idea Carolyn.

  • Neeraj Shah commented  ·   ·  Report

    We definitely need this as every other accounting system I have used had this option. So much easier to look at balance sheets balances instead of having to look through 1000s of lines.