Section 4 - Accounts receivables and Accounts

payables (debtors and creditors)

If a business buys and sells on credit, they are likely to have balances outstanding
if they move to a new software package. It is important to add these bills and
invoices to ensure the reports are correct.
The contacts you created in activities 3.1 and 3.2 had outstanding bills or invoices
dated before 1st January 2023, when Xero Leisure converted to Xero. There will be
a check performed when you add the conversion balances later to make sure that
the outstanding bills and invoices total the correct amount.
The quickest way to raise single bills and invoices in Xero is by using the + icon
in the top right of the screen and clicking the transaction you’d like to create.
Alternatively, you can use a bulk import to enter invoices and bills.
Xero has two types of invoicing - classic and new invoicing. Your invoices will
default to new invoicing where you can set up e-invoicing and add payment
services.
Learn more about invoices and bills on Xero Central
• Create an invoice - https://central.xero.com/s/article/Invoice-a-customer
• Create a bill - https://central.xero.com/s/article/Add-and-approve-bills

Activity 4.1 - Enter opening receivables balances

Enter the following invoices from the close of business 31st December 2022.
Remember the conversion date is 1 January 2023.
ENTER THE FOLLOWING INVOICES

Customer Invoice # Date Description Qty Unit Price A/C code

Katie Moran Inv789 30/12/22 Opening balance 1 240.00 201

Inv790 31/12/22 Opening balance 1 96.00 203

Alex Hill Inv720 02/12/22Opening balance 1 168.00 201

Rachel Foster Inv705 10/12/22Opening balance 1 96.00 202

Inv710 15/12/22Opening balance 1 120.00 202

Once you’ve entered the invoices, go to the Business menu and select Sales
overview and click Awaiting Payment. Check the amounts are correct and all
dated prior to 1st January 2023.
If you realise that you have made a mistake:
1. Click on the incorrect invoice to open it
2. Click on the three dots in the top right of the invoice.
3. Select Edit, make the changes and click Update
Activity 4.2 - Enter opening payables balances
Enter the following opening payables at close of business 31st December 2022.
ENTER THE FOLLOWING BILLS

Supplier Date Ref Description Qty Unit Price A/C code

Weights R 30/12/22987 Opening balance 1 520.00 301

Us

Sportswear 02/12/22 621 Opening balance 1 196.00 300

Co

Cleaning 10/12/22 484 Opening balance 1 274.00 408

supply co

Once you’ve entered the invoices, go to the Business menu and select Purchase
overview and click Awaiting Payment. Check the amounts are correct and all
dated prior to 1st January 2023.
If you realise that you have made a mistake you can:
1. Click on the incorrect bill to open it
2. Go to Bill Options on the top right of the bill and select Edit
You can then correct your bill and click Update