In Xero, there are two ways you can unmatch reconciled transactions in your bank accounts:
- Remove and Redo
The main difference is that remove and redo has a bigger effect on the accounts. Let’s take a look at each of the functions before discussing which one to use in different situations.
The Unreconcile Function
Using the Unreconcile function will only have the effect of unmatching a bank line from a transaction. It will not have an effect on the bill, invoice, spend money, receive money or other transaction in the accounts.
This means that if a bill has been paid in full and reconciled in your bank account and you use the unreconcile function, the bill will still show as having been paid in full. The paid-up bill will not be reconciled against a bank line, so you then need to match it to a bank line to reconcile the transaction again.
The Remove and Redo Function
Using the Remove and Redo function on a bill will not only have the same effect as above, it will also remove the payment from the bill. The bill will be unpaid in your accounts so you will need to match the bill to a payment and reconcile it in the bank feed all over again.
Which One Should I Use?
You only ever need to use unreconcile when you want to leave the status of your transaction the same but you need to match it to a different bank line. Examples include:
- You have paid a bill and you want to leave the status as paid but match it to a different bank line than the line you first reconciled it to.
- You have received money for a sales invoice and you want to leave the status as received but match it to a different bank line than the line you first reconciled it to.
To unmatch any other bank lines from transactions, it is best to use the remove and redo function.
Disclaimer: Our articles and videos are here to inform you and the information provided does not constitute financial, taxation, legal, business or other professional advice and should not be relied upon as such. See our full disclaimer here.