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Register closure and reconciliation with Xero

It is essential to close all the registers in your store at the end of each day. If you have staff, make sure you have a closing process for every register, in every outlet, every day. This should include counting the cash takings and removing them from the cash drawer, summing up your card machine, and closing each register in Retail POS. For detailed instructions on closing your registers, refer to our Opening and closing a register article. 

Understanding register closures with Xero

When you close a register in Retail POS, an accounts receivable invoice will be created in Xero. The invoice will include:

  • Products sold: Depending on the setting you chose, this will either be summed per product or per account code, or listed per sale. The amounts will exclude tax.
  • Loyalty: Shows loyalty earned as liability incurred. This amount is reduced when loyalty is redeemed. 
  • On account: A note of the amount of payments taken for On account sales that day. The payments will be shown on the account sale invoice instead if the day's takings include any On account sales.
  • Layby sales: Each time the customer makes a payment on a layby sale, the payment amount, along with a corresponding amount of the layby products, will be recorded in that day's register closures. These will be reported in parts, as the Xero invoice for the register closure must have a $0.00 balance. This means you might see some strange quantities in Xero for these items. It is important to remember that the register closure report in Retail POS will still show the full value of the sale. For more information refer to Posting partial layby payments to Xero.
  • Cost-of-goods-sold (COGS): If you have the cost-of-goods-sold module enabled, the cost associated with the products sold will be totaled and sent as part of the register closure. These will be posted to Xero as a COGS bill invoice and will also appear as a sum on your register closure summary in Retail POS. 

Viewing and reconciling the closure in Xero

Once your register is closed, an accounts receivable invoice will be created for the register closure in Xero. Each payment total will be applied to the invoice as a payment.

Any payments made toward On account sales will not be included in the register closure payment totals, as they will have already been posted to the account sale's invoice. You'll see a line on the invoice created by the register closure debiting the payments taken that day so that the closure total is balanced.

When your payment amounts are deposited into your bank account and appear in the bank feed, you'll be able to match them against the payment totals.

 Refer to Xero’s Reconcile your bank account article for more information.

As Lightspeed Payments payouts are sent daily, it is important that you close your register and post register closures to Xero at the end of every trading day. This will ensure that reconciliation is as easy as possible. 

Multi-day or multi-register bank deposits

You may have register closure payments that are included in a larger bank deposit, such as weekend exceptions with Lightspeed payments. This means you'll need to match this payment to the invoice for all the applicable register closures. Refer to Xero's Find transactions to match to bank statement lines article for more information.

Manually posting register closures to Xero

There may be instances that when you close your register, it fails to post to Xero. In these situations, you can perform a manual register closure posting to Xero.

  1. In Retail POS, navigate to Reports > Register closures.
  2. Locate the register closure that failed to post and note the following information:
    • Reference number.
    • Date and time of the closure.
    • Total sales taken (not including On account sales), and the total for each payment type.
      Note: If you post your closure to Xero using product totals instead of total sales, click View full details to view product totals.
  3. In Xero, navigate to Business > Sales overview.Retail-X-xero-sales-overview.png
  4. Click +New and select Invoice from the drop-down menu. Retail-X-xero-new-invoice.png
  5. Fill in the invoice fields as follows. You can use a previous register closure report as an example if needed:
    • To: [store name] - [register name].
    • Date: Date of your register closure.
    • Due Date: Date of your register closure.
    • Reference: Reference number from the register closure.
  6. Fill in the invoice items with your total sales, or by product totals if applicable. Retail-X-xero-invoice.png
  7. Click Approve. Xero will create the invoice.
  8. In the Receive a payment section, fill in the invoice payment details and click Add payment. Retail-X-xero-add-payment.png

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