Overview
This article explains how Cin7 Pay transactions sync to Xero and how to reconcile payments, fees, surcharges, and payouts.
Account requirements
Before syncing Cin7 Pay transactions to Xero, select all accounts that apply to your setup in your Xero integration settings under Accounts > Payments and Payouts Accounts.
These include the payments, bank clearing, and payment fee accounts. Select a surcharge account if you use surcharges, and the financing liability and financing fee accounts if you use Stripe Capital.
If you don’t select the accounts required for your setup, Cin7 Pay transactions may fail to sync.
Transactions created by Cin7 Pay
Cin7 Pay creates the following transactions:
- Payments
- Payment fees
- Surcharges
- Payouts
Transactions that must sync for reconciliation
his table shows which transactions must sync from Cin7 Omni to Xero for reconciliation. It includes every transaction recorded by Cin7 Pay, as well as the underlying invoice or credit note.
| Transaction | Note |
|---|---|
| Invoice | Required |
| Payment | Required |
| Payment fee | Required |
| Surcharge | Required only if surcharges are activated |
| Payout | Required |
| Credit note | Required for refunds and returned goods |
For instructions on creating refunds or returns, see Cin7 Pay refunds.
Transaction flow
This table describes the Cin7 Pay transaction flow, what happens in Cin7 Omni, and accounting transactions created in Xero.
| Transaction | Result in Omni | Accounting entry (after sync) |
|---|---|---|
| 1. Sale invoiced | Invoice created | Invoice created Dr—Accounts receivable Cr—Sales income |
| 2. Payment received | Payment recorded on sale | Payment created Dr—Payments clearing Cr—Accounts receivable |
| Payment fee recorded on sale | Manual journal created Dr—Payment fees expense Cr—Payments clearing |
|
| Surcharge recorded on sale | Manual journal created Dr—Payments clearing Cr—Surcharge income |
|
| 3. Payout received | Payout created | Manual journal or receive money transaction created Dr—Bank clearing Cr—Payments clearing |
Example: Reconciling Cin7 Pay with Xero
In this example, a $100 payment is received on an invoiced sales order. The payment includes a $3.30 processing fee, and a $10 surcharge is applied to the transaction.
| Accounting entry | Account | Debit | Credit |
|---|---|---|---|
| Invoice | Accounts receivable | 100 | |
| Sales income | 100 | ||
| Payment | Payments clearing | 100 | |
| Accounts receivable | 100 | ||
| Payment fee (manual journal) | Payment fees expense | 3.30 | |
| Payments clearing | 3.30 | ||
| Surcharge (manual journal) | Payments clearing | 10 | |
| Surcharge income | 10 | ||
| Payout (receive money or manual journal) | Bank clearing | 106.7 | |
| Payments clearing | 106.7 |
To complete the process, reconcile the payout in Xero. The final balances of each account are:
- Accounts receivable: 0
- Sales income: Cr 100
- Payments clearing: 0
- Payment fees expense: Dr 3.30
- Surcharge income: Cr 10
- Bank clearing: 106.7
Reconcile payouts
When a payout is received, it appears in Fees and payouts on your Xero integration dashboard in Omni, and as a deposit in your Xero bank feed.
You must reconcile these in Xero—they don’t match automatically. The steps depend on your Bank clearing account type:
If Bank clearing is a bank account, the payout syncs as a receive money transaction:
- Sync the payout from Cin7 Omni to Xero.
- In Xero, find the deposit in your bank feed and approve the suggested match.
If Bank clearing is a clearing (current asset) account, the payout syncs as a manual journal:
- Sync the payout from Cin7 Omni to Xero.
- In Xero, find the deposit in your bank feed and create a transaction coded to the same clearing account configured as Bank clearing in your Xero integration settings, then reconcile it.
Reconciling your Xero bank feed
Reconciling payments against quotes and sales orders
You can receive payments against quotes and non-invoiced sales orders via Invoice Pay Online and merchant-initiated transactions.
These payments can’t sync to QuickBooks Online until the quote is accepted and the sales order is invoiced.
Troubleshooting
Clearing account balances
If your payment clearing or bank clearing accounts have unexpected balances, audit the following accounts used by Cin7 Pay:
- Payments clearing
- Bank clearing
- Payment fees expense
- Surcharge income
If you use Cin7 Capital powered by Stripe (Stripe Capital), financing disbursements also post to your bank clearing account, and financing repayments are deducted from your payment clearing account. Find out about reconciliation with Stripe Capital.