Xero Bank Accounts – How to Create a Receive Money Transaction

by | May 30, 2018

All Xero Courses $21.99

*Up to 87% off for a short time only!

You may have received some money in your bank account that does not relate to an invoice, refund or transfer transaction that is already set up in Xero. When this happens, you can create a receive money transaction for the item directly from your bank feed and reconcile it to your general ledger. In this tutorial, we will create a receive money transaction from an item in the bank account feed of Xero’s demo company.

Bank Accounts Section in Xero

To get to the right area of Xero, go to Accounting → Bank accounts from the main menu:

0072-xero-bank-accounts-receive-money-01

Next, click on the Reconcile 28 Items button for the main business bank account:

0072-xero-bank-accounts-receive-money-02

Create a Spend Money Transaction

For this exercise, we need to find a transaction in the Received column of the Review your bank statement lines… section that is not matched with an invoice, refund or bank rules already set up in Xero’s demo company. Let’s go with the $2000.00 transaction from Jakaranda Maple Sytems:

0072-xero-bank-accounts-receive-money-03

To create a receive money transaction for this item, we need to add some details to the input box in the Received column of the …then match with your transactions in Xero section. In the Create tab, enter the following information:

  • Who: type in Jakaranda Maple Systems.
  • What: choose the account 260 – Other Revenue.
  • Why: add a description such as Deposit on supplies.

Once you have finished entering the information, an OK button will appear in between the two columns. Pressing the button will create the receive money transaction and reconcile it to the general ledger. Go ahead and press OK to make this happen:

0072-xero-bank-accounts-receive-money-04

Check the Receive Money Transaction

Now let’s check to see that the receive money transaction has been successfully created and assigned to the right contact. Navigate to Contacts → All Contacts from the main menu:

0072-xero-bank-accounts-receive-money-05

Search for Jakaranda Maple Systems by typing Jakaranda into the search box. When the contact appears, click on the Jakaranda Maple Systems link:

0072-xero-bank-accounts-receive-money-06

Because this is a new contact that we only just created, only a small amount of information will appear on the next screen. One of the few bits of information that should appear is the receive money transaction we just created in our bank account feed. If everything has worked perfectly, you should see a Received Money transaction in the Activity section that matches the amount we reconciled in our bank feed:

0072-xero-bank-accounts-receive-money-07

Congratulations! You have successfully created a receive money transaction from an item in a bank account feed and reconciled it to the general ledger.

Mark Cunningham

Mark Cunningham

Xero Specialist | Udemy Instructor | Small Business Owner

I have been a company accountant for more than 20 years. I am now dedicated to empowering small business owners through my highly-rated and popular Udemy courses on Xero, bookkeeping and accounting.

All Xero Courses only $21.99