Add a spend or receive money transaction while reconciling

When reviewing your bank statement lines, record a cash transaction that you haven't already entered in Xero by adding a spend or receive money transaction to match it to. Add a spend or receive money for any unreconciled cash, check or electronic transactions that don't relate to an invoice, bill, expense claim, transfer or refund.

To create a spend or receive money transaction and reconcile it:

  1. On the bank reconciliation screen, next to the bank statement line you want to reconcile, click the Create tab.
  2. Add or select the following information:
    • Who – this is the contact's name.
    • What – this is the account, from your chart of accounts, you want to code the transaction to.
    • Tax Rate.

    Image of the Create tab on the bank rec screen.

  3. (Optional) Enter a description (Why), and select tracking details.

  4. (Optional) Click Add details to enter extra details such as reference or inventory item, or to split the transaction across two or more lines.

    The Bank Rec screen and the Add details link.

    Click Save Transaction to save details.

  5. Click OK to create the transaction and reconcile it.