Connecting Paytron to your Xero account allows Paytron to keep your records up to date with all the transactions you initiate in Paytron. All of this happens in real time.
This article describes exactly how Paytron updates your Xero account, and when changes are made.
Bills (aka supplier invoices) - originating from Xero
You can continue processing your bills as you currently do by manually entering them into Xero, emailing them to Xero or using third party providers such as Dext.
Whenever a bill moves out of the Draft status to the Approved for payment status on Xero, the details of the bill including any attachments will be pushed into Paytron, but it will not yet be paid.
You will need to log into Paytron, review all the payment and bank account details pre-populated by Paytron before approving the bill for payment on the scheduled payment date. The payment will then go into Scheduled status in Paytron.
Bills - originating from Paytron
An alternative to process described above, you can send your bills directly to Paytron.
The unique email address to use can be found as follows in Paytron:
- Navigate to the Payments page
- Click on the Upload Invoice button in the top right hand side of the page
- You will now see the unique address which can be copied to your clipboard and pasted into your email application
- We recommend you save this address as a contact so that you do not have to copy and paste the address every time
You can send multiple bills simultaneously within a single email or separate emails. After about 10 seconds your bill will appear in Paytron ready for review.
You will now be required to review the bill for the following details:
- Review the pre-populated payment and bank account details. If an existing beneficiary is not found on Paytron, a new one will be prompted for creation with all of the banking details auto captured.
- Select the correct Xero Account (i.e. 800 - Office equipment). These details are pulled from your Xero account and represent your unique custom settings
- Select the correct GST code (i.e. GST Free expense)
Once approved, the payment will be in a scheduled status which is the trigger to push the bill details including the bill PDF to Xero as Awaiting Payment. The bill will not be paid until the payment date is reached
All updates to bills from either Paytron or Xero, will be synchronised to the other system in real time
Through the Paytron Funds page, you can convert your money between any of the currencies supported on the Paytron platform.
Alternatively, when you make a payment in a currency that is different to your source currency (i.e. the currency of the funds you would like to use to make the payment), Paytron will do a currency conversion automatically to ensure you have sufficient funds to make your foreign currency payment.
This conversion deducts the source currency funds from your respective Paytron Global Account and adds the payment currency funds to the respective Paytron Global Account.
These cash flows are synced with the respective Paytron bank accounts in Xero using the exact exchange rate of the conversion.
The contra account for these conversions is an account created by Paytron in Xero called Paytron FX.
When the payment date arrives, Paytron will begin to process the payment. Once the payment has actually been made, the status of the payment will change to Done. This is the trigger for Paytron to reach into Xero and update the bill status to Paid.
Next Paytron will check if a Paytron bank account already exists in Xero for the currency corresponding to the payment that has been made. If none exists, one will automatically be created.
Finally, Paytron will deduct the payment amount and any fees from the respective bank account and mark the bill payment as Reconciled.
Therefore, except for deposits and withdrawals, as described below, the Paytron bank accounts in Xero will always be in a reconciled status that does not require any manual intervention. Suffice to say, your Paytron Global Account balances will always remain in sync with your Paytron bank accounts in Xero balances
Foreign currency payment example:
- You would like to pay a bill of USD 10,000 using AUD
- Paytron will give you a quote of the required AUD. Lets assume that's AUD 13,000
- In Paytron and in Xero, Paytron will deduct 13,000 from your AUD Paytron bank account and add 10,000 to your USD Paytron bank account. This represents the currency conversion
- Then Paytron will deduct 10,000 from your USD Paytron account, which represents the Payment.
A payment can be deleted / terminated / voided from Xero or Paytron any time before the payment date.
Voiding the bill from Xero will terminate the payment in Paytron without further prompt.
Terminating the payment in Paytron, will present a further prompt request what the desired action in Xero needs to be:
- Do nothing, i.e. leave the bill as is in Xero. Useful for when an invoice has fed into Paytron from Xero that has already been paid through another means (i.e. debit card)
- Move to draft status
Bills uploaded to Xero which have already been paid
Sometimes bills will feed into Paytron that don't require payment. Examples of this are bills that have been paid through another bank account or via debit card. In order for the accountant to reconcile the spend on the non-Paytron bank account, they may require the bill to be uploaded to Xero.
This payment should be terminated in Paytron, which will result in a further prompt of the action to be taken in Xero. You should choose Void
Deposits and withdrawals
Currently deposits into your Paytron Global Account, or withdrawals from your Paytron Global Account feed into Xero via bank feeds (see below).
A bank feed is when a cash receipt or cash spend is pushed by your financial institution into your bank account in Xero. Most financial institutions do this overnight. The Xero user will have to manually reconcile these entries against bills or invoices. Paytron uses real time bank feeds for deposits and also for payments where the Paytron user did not specify which accounting code the bill should be booked too in Xero.
Real time reconciliation is a proprietary feature of Paytron, where through control of the bills and Paytron Global Accounts in Xero, we reconcile all expenses and their bills in real time so there is no manual intervention required by the Xero user. We can only do this if the Paytron user specifies which accounting code the bill needs to go too in Xero
Paytron will automatically create a Contact in Xero for every beneficiary that is being paid