For Bills:


Where a Returns IN (Early Payment Discount) is accepted and paid, the entries into your accounts are as follows. Please note that steps 1 & 2 are fully automated.


Using an example of a 2 bills, totalling $3,555.00 bill, with $250 Returns In acceptance (Early Payment Discount) = $3,305 Net Payment.


Bill 1 - $1,555.00 less $100 discount = $1,455.00

Bill 2 - $2,000.00 less $150 discount = $1,850.00


Total taken to your bank account = $3,555.00 less $200 = $3,305.00 (this is the amount you will see on your bank statement)

 

Upon bill payment: (Part 1- 2 are automated by Parakeet)

 

  • Part 1: 

    • Bill 1 

    • $1,555 is posted against your bill (1) and marked as paid

    • $1,555 is posted against your Parakeet AP Clearing (interim) account; and

    • $100 is recorded as a 'Receive Transaction' in Xero against Parakeet AP Clearing (Interim) account; and
    • $100 is posted to your Parakeet Returns Revenue account



    • Bill 2

    • $2,000 is posted against your bill (2) and marked as paid

    • $2,000 is posted against your Parakeet AP Interim Clearing account

    • $150 is recorded as a 'Receive Transaction' in Xero against Parakeet AP Clearing (Interim) account;
    • $150 is posted to your Parakeet Returns Revenue account



  • Part 2:

    • $3,305 transfer now automatically occurs from Parakeet AP Clearing (Final) Account to the Parakeet AP Clearing (Interirm) Account

    • Parakeet AP Cleating (interim) account is now cleared to $0.00

    • $3,305 now sits in your Parakeet AP Final Clearing account


  • Part 3: (1Click-n-Transfer)

    • You will now transfer the $3,305 spend entry your bank statements to Parakeet AP final Clearing Account.

    • You can see it HERE - Refer to the 2:55 minute mark of the demonstration video below.