This article outlines the recommended workflow for integrating Pin Payments with Nexus Service Manager and Xero, ensuring accurate financial reporting and simplified reconciliation.
The Problem: Complex Handling
Previously, handling Pin Payments surcharges involved manual calculations and adjustments within Xero, leading to reconciliation difficulties. This approach, which included adding a percentage-based surcharge to invoices or a flat fee, proved time-consuming and prone to errors.
The Solution: Simple Reconciliation
The recommended method leverages Nexus Service Manager's integration with Pin Payments and Xero to automate the process, eliminating manual calculations and ensuring accurate financial records.
Here's the recommended workflow:
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Mark Payments in Nexus Service Manager:
- When a customer makes a credit card payment via Pin Payments, ensure it's accurately recorded within Nexus Service Manager. This step is crucial for accurate tracking and reporting. This can be automated by enabling “Auto Receipt” within Financial Management setting so when a customer pays via the Online Invoice Payment app the Receipt is automatically entered in on a successful transaction.
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Bank Account Creation in Xero:
- Manually create a dedicated "Pin Payments" bank account within your Xero organization. This account will reflect all Pin Payments transactions.
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Bank Transfers in Xero:
- When the funds from Pin Payments are deposited into your main bank account, perform a "transfer" within Xero. This transfer will move the funds from your main bank account to the newly created "Pin Payments" bank account during the bank reconciliation process.
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Automated Fee Calculation:
- At the end of each month, the difference between the total payments recorded in the "Pin Payments" bank account and the actual funds received in your main bank account will represent the fees charged by Pin Payments.
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Pin Payments Reporting:
- Utilize the reporting features provided by Pin Payments to generate a detailed report of fees incurred. This report will serve as supporting documentation for the automatically calculated fees in Xero.
Benefits of this approach:
- Simplified Reconciliation: Eliminates the need for manual calculations and adjustments, making reconciliation straightforward.
- Accurate Financial Reporting: Ensures accurate tracking of Pin Payments transactions and fees.
- Automated Workflow: Reduces manual data entry and minimizes the risk of errors.
- Clear Financial Overview: Provides a clear picture of Pin Payments transactions and associated fees within Xero.
Visual Representation in Xero:
In Xero, you will see the Pin Payment bank account, and the transfers from your main bank account into this account. The difference between the total income in the Pin Payments account, and the transfers into that account, will be the pin payments fees. This requires no manual calculations or editing of invoices.
By following this recommended workflow, you can effectively manage Pin Payments transactions within Nexus Service Manager and Xero, ensuring accurate financial records and streamlined reconciliation.
Updated: 25 February 2025