Reconcile using cash coding

Here's a suggested way, and some tips, to cash code multiple bank statement lines for spend and receive money transactions you haven't entered into Xero.

Before you start cash coding

To avoid cash coding something that might match an invoice or other transaction you've already entered in Xero, we recommend reconciling the following items first in the Reconcile tab:

  • Sales invoices and bills
  • Credit note refunds
  • Overpayments and prepayments
  • Expense claims
  • Transfers between bank accounts

Also reconcile any spend or receive money transactions you've already entered in Xero.

Cash code your statement lines

Access cash coding

  1. On the Accounts menu, select Bank Accounts.
  2. Click the bank account name to open it.
  3. Click the Cash coding tab.

    Image of the Cash coding screen.

General cash coding tips

  • It's best to reconcile fewer than 100 statement lines at a time.
  • If you want to sort the statement lines, do this first to avoid losing any unsaved changes.
  • If you've already entered a payee as a contact, click into the Payee field, enter your contact's name and select them from your contact list. This way you'll avoid creating a duplicate contact if the payee on the bank statement line is slightly different to the contact name in Xero.
  • Click Shortcut keys in Xero, while you code, to view other time-saving shortcuts.

    Image of the shortcut keys info.

Apply and reconcile bank rules

  1. Select the checkboxes next to the bank statement lines Xero has completed for you as a result of bank rules you've set up.
  2. (Optional) If there are other lines you want to apply a bank rule to, select the checkbox next to these lines, click Apply rule, then select the rule to apply.

    Image of the Cash coding Apply rule button and the bank rules that can be applied.

  3. Click Save & Reconcile Selected.

Code and reconcile lines with the same details

  1. Select the checkboxes next to the bank statement lines you want to code with the same details.

  2. Enter details in the first field. When you move to the next field, the details you've just entered will be added to all lines you selected.

    Image of the cash coding screen with multiple lines selected and same coding details.

  3. Enter details into the remaining fields.
  4. Click Save & Reconcile Selected.

Code and reconcile remaining lines

  1. Code the remaining lines by entering details into the fields.
    • Payee, tracking and description aren't needed. If you remove the payee, Xero creates an account transaction (with the contact Unknown) to match the statement line.
    • Split a statement line, create a bank rule or delete the bank statement line while you're coding - click the arrow next to the statement line to use these options.

      Image of the cash coding screen and the option for splitting or creating a bank rule.

    • View comments - hover over the note icon to view a comment added to a statement line.

      Image of the cash coding screen and the Note icon.

  2. Click Save & Reconcile Selected when you're finished.

Percentage split short cut

  1. Click on the down arrow at the end of the bank statement line and select Split.
  2. Enter the transaction detail and type the percentage amount and symbol (%) into the amount box.
  3. Select Enter.