Recording a cash or card payment received
Matching a bank receipt to an invoice and what to do if the amount differs
When a customer pays you, record the payment in Xero against the outstanding invoice to mark it as settled and to reconcile the bank transaction.
Matching a bank receipt to an invoice
When the customer's payment arrives in your bank feed, Xero will suggest a match to the outstanding invoice. If the match is correct, click OK. The invoice is marked as ‘Paid’ and the bank transaction is reconciled in a single step.
If the amount received differs from the invoice
If a customer pays less than the invoice amount (a short payment), match what was received and leave the balance outstanding. If they pay more, apply the overpayment as a credit against a future invoice. Contact us if a customer pays a combined amount covering multiple invoices, and we will advise how to allocate it correctly.
💡 Important: Never mark an invoice as paid manually in Xero without a corresponding bank transaction. This creates a discrepancy between the Xero bank balance and the actual bank balance.
Not found what you're looking for?
Please get in touch and we'll be happy to help:
Email: You can submit a request using our contact form
Phone: 020 3897 2233
Live Chat: Select the live chat icon on the bottom right