Background:
- You are a supplier who has received payments via Parakeet (on behalf of your customer/buyer)
- Email notification - You received a remittance advice, with a CSV file attached showing the breakdown of invoices
- Deposit to your Bank Account - You received a Direct Deposit to your bank account with reference 'Parakeet_<customer name>" reflecting the batch payment made by Parakeet (on behalf of your customer)
Step 1 - Create a 'Clearing Account' in Xero:
This account is used to help reconcile the inward payments
Create a "Parakeet AR Clearing Account" in Xero.
To do that, set it up as a bank account (screen shots below)
> Add Bank Account
> Enter Parakeet > Add without Bank Feed
> Enter "Parakeet AR Clearing Account" (or whatever suits your business)
> Account number can be anything
Step 2 - Import the CSV remittance file into Xero:
Import the CSV as bank transactions into Xero
Import it to the bank account against the Clearing Account set up in step 1
Go to: Accounting > Bank accounts > select account > Manage account > Import a statement > CSV.
Map columns
e.g invoice number to Reference field
Customer name to Description field etc
Import
Step 3: Xero Auto Matching:
Xero will now undertake 'Auto Matching' (usually matching the invoice numbers and amounts) against the Clearing Account
The Clearing Account will now have an outstanding balance matching
The deposit you received for the invoices and;
The total on the CSV remittance file
Step 4 Reconcile Bank Statement to Parakeet AR Clearing Account
- Once the deposit / statement entries come through into Xero for reconciliation, you need to select ’transfer’ and select Parakeet AR Clearing account as per below.
- Click OK and it’s done.
- This brings the Parakeet AR Clearing Acocunt to balance of $NIL.
- (You can also create a bank rule in Xero to automate this)
- *Recommended* - Mark the transfer as ‘reconciled’
- In the Parakeet AR Clearing Account, click into options and ‘Mark as reconciled’.
