How to reconcile your Airwallex Xero Invoice Payments

This guide explains how your Airwallex Xero Invoice Payments will reconcile to your Xero account. Please see below for: 

- How the settlement process works
- How to reconcile your settlement amount to your invoices

How the settlement process works

When you create an Invoice in Xero and select Airwallex as the payment service, we will create a checkout link that your customers can use to pay the Invoice. When your customers pay the Invoice, the payment amount will be posted to the Invoice and the "AWX - CUR Invoices" account in Xero where CUR is the currency of the invoice (e.g. HKD, AUD, EUR, THB). 

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For more information about how settlement works for your Airwallex account, see this article: I have questions about the settlement of funds using Online Payments

How to reconcile your settlement amount to your invoices

The Airwallex Xero Bank Feed that posts all your wallet transactions to Xero will include a Batch Settlement line item for this settlement, alongside any payouts, deposits, or FX transactions you made. 

You will see this under the "Airwallex CUR" Xero bank account where CUR is the currency of the wallet balance. 

You can reconcile the transactions posted in "AWX - CUR Invoices" against the Batch Settlement by downloading the Settlement Report from your Airwallex webapp and seeing which payments are included in the Batch Settlement, and the breakdown of fees and payment reserve holds. 

This report allows you to match the Batch ID with:

- Gross settlement amount and currency
- Fees - payment method fees, gateway fees, etc.
- Reserve amount
- Exchange rate
- Net settlement amount
- Order ID

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Coming soon: Better settlement accounting feeds

In order to help you more easily reconcile your online payments activity, we are currently working on an improved Online Payments Accounting Feed.

Get early access by signing up here

The Online Payments Feed will post line items for each online payment transaction, its underlying fees, and any settlements deposited into your wallet balance. You will see accounts named "AWX Online Payments - CUR" in Xero where CUR represents the settlement currency.

To reconcile your transactions after this feature launches:

  1. You can reconcile the Invoice Payment in "AWX - CUR Invoices" against a corresponding transaction amount in "AWX Online Payments - CUR". Note that if your Invoice Payment was in a non-like-for-like currency (e.g. THB), you will need to reconcile it against the settlement currency (e.g. AUD). 
  2. You can reconcile any transaction fees (e.g. payment method fees, gateway fees) into a Bank Fees account.
  3. You can reconcile the Batch Settlement line item in the Bank Feed against the settlement line item in the Online Payments Feed.
  4. Any remaining balance in the "AWX Online Payments - CUR" account represents amounts held as a payment reserve per your payment reserve plan. 

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