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 your Xero Chart of Accounts, 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    • When searching, you may need to search Archived accounts in case an account has been archived.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




Note: If the Account Code/Number in the Account Code Chart cannot be used because it is already used and archived in Xero an alternative option is available.


 In the Accounting module, select Accounting Export and click on the Account Setup tab. Under Special Accounts you can enter any number you would like to use under Payment Liability Account Number. Select Save Account Setup after you have entered the number to save the account number you have entered.





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

  • Xero is responsible for numbering 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
  • In Xero, 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.