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Reconcileing of payments with fees

Xero & Square reconcileation of invoices, fees and payments

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Hi All

We use Xero accounts for invoicing and Square to take card payments on our website, the website automatically creates invoices in Xero for each transaction made.  We tried the Square to Xero integration but that didn’t work properly, at the end of each day the value from Square was brought back in and a new sales invoice based on the complete day sales was created, this would then double invoice all the sales and I was told the was no way to change this.  I was told the way forward was to create an A/R and put the payment against this then reconcile the A/R against the bank.

So, for example I made 3 sales £210.60, £14.19 and £5.68 total £221.47, this is the value in my Square A/R inc vat.

The next day Square deposit into my bank £215.94, they deduct 2.5% for the fees (£5.53) for processing the card payments.

First question, is this the correct way to do this? Is there another easier option or is this just wrong?

Secondly, what is the best way to deal with the fees? Do we just create a bill every day to cover each day processing fees?

Lastly, I am assuming that we can then reconcile the 3 invoices and the 1 bill against the bank account payment?



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By daniel_
01st Jul 2019 10:20

If you go to invoices awaiting payment, you can check the box next to the invoice which were paid through Square, then click Deposit to create a new (unreconciled) batch deposit.

Then when the funds are received from Square you can match the amount received to your deposit entry in the bank rec screen.

From the bank rec screen you can create an adjustment for a bank charge for whatever the difference is.

(this is just how I'd do it)

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