Your reconciliation settings are added as part of the GoCardless for Xero account setup process, however you may need to update these at a later date. This article explains how to do so.
To open your GoCardless for Xero reconciliation settings...
1. Open up the Settings section in your left menu bar by clicking the plus sign (+)
2. Open Xero Settings
3. Click on Xero Reconciliation
You should now see a page that looks like this:
As you can see in the screenshot above, there are three fields to confirm your reconciliation settings for. The table below provides an explanation for each.
|Where your money gets paid out to||
This is the bank account in Xero where your funds will be transferred to. During the setup process you selected an account, which you can change here.
NB: This is different from the account you have set up in GoCardless, it is your Xero account.
|The interim reconciliation Direct Debit account||
To enable the reconciliation process to work effectively we set up a Direct Debit Clearing Account in Xero. This is a holding account before GoCardless fees are deducted. We automatically create an account called Direct Debit during sign up for this process.
NB: The account that monies are paid into cannot be the same as your reconciliation account. If the same account is used, payments will not be reconciled properly.
|GoCardless Fees Account||
Choose how you would like GoCardless fees to be posted on your Profit & Loss
This is automatically set to 404 - Bank Fees. You can use the dropdown menu to change this if you would prefer an alternative code.