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Quick fixes 21 – How to reconcile payment and receipt, or refund to credit card on Xero

  1. Allocate Payment to a Credit Card – Under Bank Accounts, select your Credit Card and reconcile transactions just like a regular bank account. If there’s no invoice, use Create, Spend, or Receive Money.

2. Apply Payment to an Invoice – Go to Purchases > Awaiting Payment, find the invoice, set the payment date (e.g., Jan 31st), select Credit Card as the payment method, and confirm.

3. Process a Refund to a Credit Card – If the invoice was canceled and you received the payment back, create a Credit Note for the supplier (e.g., ABC Taxi) with the refund details.

4. Match the Refund – Go to Accounts > Credit Card, find the refund transaction, and click OK. If it’s missing, use Find & Match, search for the supplier (e.g., ABC Taxi), and link it to the credit note.

I hope you found this tutorial helpful! You can watch a video tutorial below.

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