Client was making set payments to a supplier each week – $500 – and wanted to know how to part pay and invoice in Xero, and for recording against the bills they owe them.
Answer – We set up a rule for the weekly $500 to go to the Electronic Clearing Account.
Then from the Chart of Accounts, we set the Elec. Clearing Account to show on the Dashboard.
So the payments will show in the Dashboard – at the right-side under Accounts Watchlist, Electronic Clearing account 11190 – usually under both “This Month” and “YTD” (means Year to Date).
Normally this account should be brought back to Zero, or be kept at Zero.
Showing $500 is a good trigger to remind us to act – it means it is “out” of where it should be (zero) due to the $500 we paid – and we need to allocate $500 to some of the supplier invoices to us (bills).
Xero doesn’t allow payments across invoices or part-payments to invoices when allocating from the Bank Transaction bank-feed window.
DUPLICATE the TAB, as we need to come back to Dashboard later.
On the right side under “Bills you need to pay” click the $ amount to the right of “xx Awaiting Payment” for the supplier.
This gives a list of all outstanding invoices.
Ensure they are dated from OLDEST at the top (click the Date in the top menu of the table).
Look at the next due invoices and the amounts of each invoice e.g. if less than $500.
NOTE – The Invoice numbers (so we can note them in the reference next).
Open the top bill.
If the next due is LESS than $500, e.g. $220, then down below left, we pay it in FULL at $220, put the date of the original $500, Paid from = type “Elec” and select the Acc 11190 Elec Clearing Account, then add the invoice number to the reference (so it comes up in some reports for ease of tracing) and then open the next bill due – and the rest of the $500 (500-220 = $280) is paid to the next bill/bills with the same date and next bill/invoice number in the reference.
Do any more invoices to make up $500, if needed, due to small $ bills (if that applies).
Back in Dashboard, refresh the tab and the Electronic Clearing account should now be zero.
To see the Debit and Credit to check – click the $ for the Elec, Clearing Acc, under the latest month $ on the right.
Look at the transactions.
It should all come back to 0.0 – as in Closing Bal. at the bottom.
In our example, the 0.0 is under the Debit Column below –
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