POS Billing - Applying payments to a function invoice in Xero

You can apply a payment to an invoice prior to receiving the money from the customer to be invoiced. 

Otherwise, you can skip steps 1-4 below, and simply reconcile the payment from the bank statement at the time the money arrives. 

1. Find the function invoice in Xero.

2. Scroll down to Receive a payment 

3. Enter the necessary fields

• Payment Amount - amount received from the customer
• Date Paid
• Paid To (Account code to post the payment to)

4. Click Add Payment button. 

- In this example, we received the full payment amount for the invoice. After applying the payment this will change the status of the invoice to Paid.

Receiving and applying deposits

If your customer has outstanding credits from a prepayment, Xero prompts you to allocate the credit next time you approve a function invoice for that contact.

Please refer to Receiving and applying deposits to a function invoice for more details.

Reconcile payments against bank statement lines

If you are receiving payment thru bank transfer/deposits, you can reconcile the payment transaction (from the function invoice) against the bank statement lines.

To reconcile the payment against your bank statement lines, please refer to the steps below.

• Review and find the matching bank statement line to the function payment applied to INV-0054

• In most cases Xero automatically matches imported statement lines with account transactions entered in Xero. 
• If Xero can't find a match, you can do a search by clicking on the Find & Match link using the function payment

After reviewing the matching statement line with the payment transaction is correct, click OK. 

• The function payment is now reconciled when you view the payment details on the function invoice.