Enter information into payment fields

If you're recording a payment of an invoice or bill, here's some guidance on entering information into the fields. Xero helps by filling in some of them for you – though you can change them to suit your organisation.

Payment detail fields

Enter information about a transaction when recording a payment of an invoice or bill.

Amount Paid

Enter the amount paid, it can be the full outstanding amount, or an overpayment or part payment.

Date Paid

The date on which you made or received the payment or part payment.

Paid To/ Paid From

Choose the account from which you made the payment or have received the payment into.

  • If you're recording a cash payment, choose the bank account the money will be paid from or received into. Amounts paid or received (whether full or partial) will display in the list of bank account transactions for the chosen account.
  • If the payment (or part payment) is not cash and is to be recorded against another account, those that you've set to 'payments enabled' in your chart of accounts will display. Payments against these accounts don't go through your bank account and you'll only see these transactions via certain reports (eg Balance Sheet, Account Transactions Report).
  • If you have a pricing plan with multi-currency and the invoice or bill payment is in a foreign currency, the payment can be recorded from:
    • a bank account of the same currency (if you've set one up in Xero)
    • a bank account in your base currency. When you select a base currency bank account, enter the exchange rate that the bank used when it converted the payment into your base currency.

      Image showing the exchange rate field in an invoice awaiting payment.

    • an account in your chart of accounts that is enabled for payments, eg Owner Funds Introduced.

Payment reference if required.

  • If you're paying a bill by cheque, this is a useful place to put the cheque number or payment reference number from your online banking payment confirmation. This will display during bank reconciliation so that you can match the payment with the processed cheque or bank payment on your downloaded bank statement line.
  • For sales invoices, overpayments, and prepayments, the reference you enter here will appear on the Reference column of any related customer statements.
  • If you receive a payment for one of your sales invoices, you could enter the invoice number of the invoice being paid. This will make the payment for this invoice easily recognisable during bank reconciliation when the incoming payment displays on your downloaded bank statement line.
  • If you bank a whole lot of cheques at once from customers and these come through as one large amount during bank reconciliation, you might like to enter the date you banked the cheques, or a bank deposit reference on each of the invoices covered by the cheques so that during bank reconciliation you can identify which invoices the deposit covers.
  • During bank reconciliation you can identify the sales invoice payments covered by the single imported statement line by ticking all those with the reference number you used for this deposit.
  • If you leave this field blank then nothing will show as the reference against this payment during bank reconciliation.

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