Quick Fixes 36 – How to solve a bank fee reconciliation paid by a client on Xero

1. Go to the Bank Account Reconciliation:
2. Navigate to the Bank Account and find the transaction that matches the invoice.
3. Allocate the First Payment:
4. For the first payment, simply click OK to allocate it to the invoice.
5. Handle the Second Payment (Bank Fee):
6. For the second payment (the bank fee), click Find Match on the right-hand side.
7. Search for the sales invoice and select it.
8. Adjust for the Bank Fee:
9. You’ll notice a difference in the amount.
10. Scroll down to the Adjustment Section and click Adjustment.
11. Select Bank Fees and enter the correct nominal account for the bank fees.
12. Ensure the amount matches the difference (the bank fee).
13. Reconcile:
14. After making the adjustment, click OK to reconcile the transaction.
15. The invoice amount due should now show as zero, indicating that the bank fee has been allocated properly.

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

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