Using a Clearing Account instead of your main bank account (Xero)
uCollect posts the payment record to the nominated bank account. If you have lots of transactions going through uCollect this can still be overwhelming to reconcile. One way to help manage this is to use a Clearing Account. A clearing account is just a “fake” bank account in Xero that we use to manage all the payment transactions to keep them separate from the rest of your transactions.
To use a clearing account please follow these steps:
- In Xero create a new bank account (doesn’t matter what bank or account number you give it). This will act as our clearing account. You should name it something like “uCollect Clearing Account”.
- In uCollect go to Edit Organisation, find the gateway and click the pencil icon to edit. Change the Xero Bank Account entry to the clearing account.
- When the settlement transaction comes through your bank feed you should treat it as a TRANSFER to the clearing account.
- The clearing account should now have a balance of $0.00. If it does, select all unreconciled transactions and choose “Mark as Reconciled” (if this is not visible go to the question mark icon top right of the page, click it and choose “Enable Mark as Reconciled”). If it doesn’t balance you will need to check with your bank to find our what items they declined.