Fixing common errors in Xero

We’ve all done it. Even if you’re familiar with Xero, it’s so easy to make an error while distracted, or while rushing to complete your work.

The good news is that Xero is almost unbreakable for the average user.

Do any of the situations below seem familiar?

  • You’re pretty sure that you’ve reconciled Xero, but your dashboard says otherwise
  • Wanting to correct information in a sales invoice by creating a new one
  • Paid the same bill twice in error
  • Made a payment out of the wrong bank account
  • Used an incorrect code when reconciling a transaction
  • Recording an incorrect GST rate on a transaction

Bank reconciliations

As there can be a few reasons why you’re seeing an unusual or unfamiliar message on your Dashboard, we’ve outlined these (and solutions) in a separate blog – Problems reconciling Xero?

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Duplicate invoices or bills

Maybe you’ve made an error in an invoice and want to quickly get the correct one out to a customer by creating a new invoice. Perhaps you entered a supplier bill late last night and left it by your computer – come the morning, you enter it again.

A double-up of invoices or bills can result in very misleading figures.

A.     Remove duplicate where the invoice or bill HAS NOT BEEN PAID

Simply head into Business Invoices / Bills and select the one you need to delete. At the top-right, you’ll see invoice options – select ‘Void’.

Done.

B.     Remove duplicate where the invoice or bill HAS ALREADY BEEN PAID
  1. On your dashboard, click on the three little dots top-right of the bank account block and select ‘Account Transactions’
  2. Find your transaction in the list – the Search function (top-right) will narrow the number of entries if needed
  3. Click on the box to the left of the transaction
  4. Just above those boxes, you’ll see a button to ‘Remove & Redo’ – click on that*
  5. You’ll be asked to confirm
  6. Now follow the instructions in A above to void the duplicate invoice or bill
  7. The transaction going through the bank account still needs to be reconciled (we unreconciled it in step 4). Reconcile the transaction as normal by matching to the appropriate invoice.

* Remove & Redo won’t remove the line item from Xero or your bank statement. It’s just unreconciling the transaction so you can start again.

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An invoice or bill has been paid twice

Your customer has paid an invoice twice

However, they may prefer to have the second payment applied against their next invoice. A credit note is the way forward.

  1. If you have already reconciled the second payment, follow the steps in A above to unreconcile that transaction.
  2. When reconciling the second transaction, click on ‘Add details’.

  3. In the resulting pop-up, record the money ‘Received as’ Overpayment. Fill in the relevant line items, including the customer name and click ‘Save Transaction’


When you create a future invoice for this customer, Xero will ask if you want to apply the overpayment to the invoice. You do. The invoice is then sent to the client, showing the sale price less the amount already paid.

You’ve paid a bill twice

If you want the overpayment to be offset against future bills (like the customer above), follow those same steps. The only difference is that instead of ‘Receive Money as Overpayment’ in step 2, you “Spend Money as Overpayment’.

The alternative is to ask your supplier to refund the money.

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Payment from wrong bank account

If the “wrong bank account” is on your Xero dashboard, simply reconcile the transaction as normal (from the wrong bank account). You can transfer funds later if you like, but it’s not needed from an accounting perspective.

If the “wrong bank account” isn’t showing in Xero (perhaps it’s your personal bank account), our blog – Spent money from a personal bank account? will definitely help.

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GST rate needs to change

To correct this, follow the instructions under Transaction coded incorrectly above. Instead of changing the account code, make the adjustment in the Tax Code column.

Adjusting the GST rate on a paid invoice or bill is a little trickier.

  1. On your dashboard, click on the three little dots top-right of the bank account block and select ‘Account Transactions’
  2. Find your transaction in the list – use the Search function (top-right) to narrow down the entries if needed
  3. Click on the box to the left of the transaction
  4. Just above those boxes, you’ll see a button to ‘Remove & Redo’ – click on that*
  5. You’ll be asked to confirm
  6. Now that it’s unreconciled, you can go into the invoice or bill and adjust the GST rate.
  7. The transaction going through the bank account still needs to be reconciled (we unreconciled it in step 4). Reconcile the transaction as normal by matching to the appropriate invoice.

* Remove & Redo won’t remove the line item from Xero or your bank statement. It’s just unreconciling the transaction so you can start again.

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Transaction coded incorrectly

From your dashboard:

  1. Click on the three little dots top-right of the bank account block and select ‘Account Transactions’
  2. Find your transaction in the list – use the Search function to narrow down the entries if needed
  3. Click on the transaction*, and from the ‘Options’ towards the top, select ‘Edit’ and update the account code
  4. Click on ‘Save’, and you’re sorted

You may be looking at one of Xero’s reports and come across the incorrect transaction. If the figure is in blue, follow steps 3 and 4 above – you probably don’t need to go back to your dashboard to make the change.

Making changes via the dashboard is always an option if you become stuck.

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We understand that not everybody has the time to make corrections, or you may not feel confident yet doing it yourself. Just contact us via our website or at support@beany.com and we’d be happy to help out.

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