Payments can be applied to WorkGuru invoices. This allows you to track payment status and batch transactions to clearing accounts in Xero to assist with reconciliation for certain business workflows. Payment types can also be used to account for sales and purchase deposits correctly in Xero.
Access the payments dashboard at Accounting -> Payment Types
Click the Create New link to create the required payment type, or Edit to update an existing payment.
Enter or edit the following fields:
- Payment Type Name - Payment a name to identify it when applying payments on an invoice or purchase order.
- Clearing Account - Map it to the corresponding clearing account (this drop down in populated Xero. If the clearing account you require is in Xero and not listed here, click "Get Chart of Accounts" from Administration -> Accounting -> Xero). Confirm with your accountant how to setup the clearing account in Xero. It is usually recommended payments accounts are setup as:
- Current Asset - for sales clearing accounts and purchase deposits
- Liability - for sales deposits
Note: Make sure you check the "Enable payments to this account" Checkbox in Xero
Save Payment Type to apply the settings. The payment type is now available to be applied on invoices and purchase orders.