How to reconcile batch direct debit and credit card payments in Xero

If you are using First Class's Xero integration in conjunction with credit card or direct debit payments, you will have the scenario where you receive bulk payment distributions from your payment gateway.

This bulk distribution of funds will often be made up of many transactions.

Below is a guide on how to correctly reconcile such batch payments in Xero

How to reconcile batch payments in Xero when using First Class 

Its important to note that credit/debit card payments and direct debit payments will be coded to flow into Xero as un-reconciled payments.

This simply means, that the payment will be applied to the appropriate invoice and that invoice will be marked as PAID, however, there will be an un-reconciled payment record associated with the payment that will sit in your list of payments to reconcile.

The reconcile list will also list your batch payment from your payment gateway

You can match the un-reconciled payments against the batch payments using the find a match feature

From the list, you can reconcile the payments that make up the batch distribution.

When the amounts match you can reconcile these payments against the batch payment and the process is complete. 

TIP- You can match unreconciled payments against batch payments by using reference or searching by the reference. The reference will typically reflect the type of payment made.