Record movements in system accounts
Record movements for your clients in system accounts including accounts receivable, accounts payable and wages payable.
Accounts receivable, accounts payable and wages payable are system accounts.
- Xero automatically creates default system accounts for specific reporting or accounting purposes. They will always balance, and equal the sum of the approved invoices, bills or wages payable.
- Add a secondary account for each system account that you want to journal to. You can then add the manual journals and customise the Balance Sheet layout.
Add a secondary account to the chart of accounts
- Add an account to your client's chart of accounts for each system account you want to journal to.
Use the same account type as the system account. For example:
- Add a current asset account for accounts receivable
- Add current liability accounts for accounts payable and wages payable
Add manual journal accruals
Add a manual journal and any relevant reversals, to show the accruals required for the system accounts.