E Bike City has received payments from three different customers during the month of April. Customers paid
Question:
E Bike City has received payments from three different customers during the month of April. Customers paid directly into the Citibank bank account.
Required:
You are required to apply the correct payment that has been made into the Citibank bank account against the correct invoices.
Look at the amount of the payment and the description provided in the details of the bank transfer for information to assist you with matching each payment to the invoice(s) they relate to. In some cases, Xero may help to match up the payments to the invoices for you. If this is the case, you should check that the match is correct and if so, click OK. Note that one customer has paid multiple invoices by making a single payment. This amount will need to be applied against each of these invoices. Another customer is not entirely satisfied with the product they purchased from E-Bike City and has only paid part of their invoice while they are waiting for Erica Strudel to rectify the issue. This part payment will need to be applied against the relevant invoice while leaving the balance of the invoice remaining.
You can also refer to Xero’s Help Centre for further support to record a payment on a customer invoice.
Steps:
From the Dashboard, locate the Citibank bank account.
Click Reconcile 4 items.
To reconcile the items, use the ‘Match’ or ‘Find & Match’ functions, as appropriate.
Select the checkbox(es) next to the relevant customer invoice(s). If the invoice(s) has been fully paid, proceed to step 6, otherwise, for a part payment proceed to step 5.
If the invoice has only been partly paid, click Split. In the pop-up window that appears, ensure the part payment amount is correct and then click Split.
Click Reconcile.
Expert Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
