Can you automatically create payments for invoices in Xero?
Yes, you can automatically mark invoices as paid by creating a payment in Xero against the invoice.
This feature is great to use when the whole Magento invoice amount (e.g. sale worth $49) hits your bank account (e.g. $49 deposited). All that's left for you to do is to reconcile the bank statement line in Xero.
We don't recommend using this feature if the Magento invoice amount is different to the sum that actually hits your bank account. Examples:
- From a $49 sale, only $48.50 is deposited into your bank account after payment processing fees are deducted, or
- The amount paid combined multiple Magento orders - e.g. $196 is deposited which covers 4x $49 Magento orders received that day
In these cases, we recommend reconciling the invoices directly to the bank statement line for the deposit, and Xero will automatically create the payment for you.