OVERVIEW

  • This article explains:
    • How payments made within CoreBridge transfer/post to Xero.
    • The change made on March 22, 2020.

  • Before March 22, 2020: All payments posted as an Overpayment in Xero.
  • As of March 22, 2020: All payments post as a Prepayment in Xero.

  • When a payment is an order deposit, the payment will still need to be applied in Xero manually to the invoice once the invoice syncs.



A. WHAT'S THE DIFFERENCE?

  • The difference between the two payment types is how they affect your Account Receivable (A/R).

  • Overpayment
    • Will post a debit to your bank account and a credit to A/R even when the payment is an order deposit which results in reducing the balance of your A/R account.
  • Prepayment
    • Will post a debit to your bank account and a credit to A/R when the invoice is in a Completed status. For order deposits, it will post as a debit to your bank account and a credit to a Deposits liability account.



B. HOW THE LIABILITY ACCOUNT WORKS

  • The sync looks for a General Ledger account type "Liability" and a specific account code/number, the Account name doesn't matter.
  • The account code/number is based on your Xero country. (see chart below)
  • If your country isn't listed, use the default number: 815
  • This is what the account looks like for the United States.


    INSTRUCTIONS
    • In Xero, search for the account code for your country. (see chart below)
      • If your country isn't listed, use the 'default' code.
    • When searching, you may need to search Archived accounts in case an account has been archived.
    • If you find an account using the code from the chart, it must be a "Liability" account.
    • If there is not a "Liability" account in your Xero Chart of Accounts with the account number from the chart, be sure to add one.
    • If you create a new account, set it to Tax Exempt and check the box for "Enable payments to this account".

      ACCOUNT CODE CHART
      COUNTRYACCOUNT CODE/NUMBER
      Australia815
      New Zealand815
      United Kingdom810
      United States215
      default815



C. WHAT THE PAYMENT LOOKS LIKE IN XERO

  • Xero will assign a number to each Prepayment.
  • Unlike Overpayments where CoreBridge did the numbering, Prepayment numbering is handled by Xero.
  • In the example, P-0002 comes from Xero and not CoreBridge.
  • If a Prepayment is assigned the same number as a CoreBridge order, that will cause a sync error and the Prepayment number will need to be changed manually so there isn't a conflict.



D. HOW THE PAYMENT NUMBERING WORKS

  • As discussed, Xero is responsible for numbering for Prepayments.
  • The payment number can not be the same as your CoreBridge invoice numbers or payment IDs.
  • To ensure that the sync will not fail because of conflicting numbers, be sure to check your Xero numbering.

    INSTRUCTIONS
  • Navigate to Settings

  • Then Invoice settings

  • Then Default Settings

  • Set the Invoice Prefix and Number so that the numbers that Xero assigns will never be the same as your CoreBridge transaction numbers.
    CoreBridge Transaction Numbers
  • CoreBridge payment numbers start with "CB-"
  • CoreBridge invoice numbers start with whatever they have been set to. To see your CoreBridge invoice prefix:
    • Management Module > Location > Select a location > 


E. DEFAULT PREPAYMENT VALUES

  • HEADER
    • TO: The customer in CoreBridge the payment was recorded on.
    • DATE: The payment date in CoreBridge
    • INVOICE #: (This numbering is handled by Xero. See section D)
    • REFERENCE: The CoreBridge payment ID.

  • BODY
    • DESCRIPTION:  Memo from CoreBridge
    • QUANTITY: 1 
    • UNIT PRICE: The payment amount from CoreBridge
    • ACCOUNT:   (See section B)


F. EXISTING OVERPAYMENTS

  • If there are CoreBridge Overpayments in Xero, those will not be affected. They will stay posted to A/R.
  • Prepayments will post to a Liability account. (See section B)

  • Your Xero A/R will be disjointed until existing Overpayments are applied to Invoices. 
    • Order deposits will be reflected in Xero in your AR account as well as the liability account.

  • As Overpayments are used up, negative A/R will disappear and be replaced by a Liability from Prepayments.

  • Outstanding A/R can be checked in CoreBridge:
    • Reports module > Customers/Receivables > Accounts Receivable Aging


G. GENERAL LEDGER ACTIVITY

  • This is an example of what happens with a $100.00 deposit payment on an order with no tax.