Reconciling an Expend float account top-up
When you have topped up your Expend float account from another of your Xero bank accounts, such as your main business bank account, what is the best way to reconcile that transaction? During reconciliation, it may seem logical to create a “transfer between bank accounts” transaction, but instead, we recommend creating a “spend or receive money” transaction.
Why is this?
When a bank transfer arrives, we can’t tell what bank account it came from. It could be the account from which you normally top up Expend, or you could have received a bank transfer from somewhere else. For this reason, we handle these bank transfers by assigning them to come from the Fund Control account you assigned during your Xero configuration. If you have reconciled your transfers to go into that account and find that the balance is still negative, you’ll know that you received money from elsewhere.
How to reconcile a bank transfer
Find the transaction on the Reconcile tab.
On the right of the transaction, in the “match” column, click Create.
In the What field, select your Fund Control account. This is the control account for keeping track of money loaded to your float account that you created and selected when setting up your Expend integration with Xero (see Set up your Expend integration with Xero, 2. Set control accounts).
Complete the other fields, ensuring that you’ll be able to identify the transaction.
Click OK to reconcile.
When you view your Fund Control account, there will be matching debit and credit transactions to balance the amount transferred / topped up.