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.

Locked and system accounts

You must have the Adviser user role to add accounts to the chart of accounts.

Add a secondary account to the chart of accounts

  1. 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
  2. Give the new account a name relating to the system account but that is unique in the chart of accounts. For example, Accounts Receivable 2.

    Image showing Add new account screen.

Add manual journal accruals

Add a manual journal and any relevant reversals, to show the accruals required for the system accounts.

Image of draft manual journal showing accruals.