If you have an existing invoice created in Xero/QBO

When the invoice is created prior to a proposal in Practice Ignition, you will need to perform the following depending on whether your firm operates on a cash basis or accrual basis;

  • Cash basis - Line items aren’t documented until cash exchanges hands. This method means you only have to worry about the transaction at the point in time.

  • Accrual basis - Revenue and expenses are recorded before any money exchanges hands. This method portrays a more accurate portrait of business health.

Cash basis

If you are operating on a cash basis, ensure that this is not included in your BAS statements and not included in tax returns since it hasn't been paid yet.

Delete the original invoice on cash basis (since its not actioned anywhere). Keep in mind that in Xero there's no "true" deletion - you simply void it.

Then, you can create the proposal in Practice Ignition to collect the debt. When the proposal is accepted, the system will automatically raise the invoice, collect payment on your behalf and mark your invoices as paid!

Accrual basis

If you are operating on an accrual basis, you'll need to include this in your BAS as a bare minimum and potentially need to report it on your tax return depending on what time of year it is. You don't want to double-up the general ledger with the debt invoice.

Method 1 (Xero)

  1. Turn off invoice generation for the relevant clients (in clients tab within PI)

  2. Create a proposal in PI and collect the payment

  3. Payments across all Practice Ignition proposals are disbursed into your account

  4. Receive money into PI Clearing account using the bank rule

  5. Click into the invoice screen, select the outstanding debt invoices and then in bulk, match the corresponding payment to the invoices.

Note: If you are collecting for fees outside of debt collection, you will need to manually create Xero invoices through Practice Ignition (this is done through the client's Invoices & Payments tab)

Method 2 (Xero)

  1. Turn off invoice generation for the relevant clients (in clients tab within PI)

  2. Create a proposal in PI and collect the payment

  3. Payments across all Practice Ignition proposals are disbursed into your account

  4. Use find and match function on the bank reconciliation screen of the disbursal

  5. Match the portion of the disbursal to the debt invoices (on the bank reconciliation screen)

  6. Create an entry into the clearing account with the remainder of the disbursal amount.

Note: If you are collecting for fees outside of debt collection, you will need to manually create Xero invoices through Practice Ignition (this is done through the client's Invoices & Payments tab)

Method 1 (QBO)

  1. Ensure invoice generation is on for the relevant clients (in clients tab within PI)

  2. Create a proposal in PI and collect the payment

  3. Payments across all Practice Ignition proposals are disbursed into your account

  4. Change the Receive Payment entry to receipt out the original invoice

  5. Void or Delete the new invoice

  6. Match on the bank feed for the deposit

If you do not have an existing invoice

Create a new proposal in Practice Ignition to collect the debt and allow the system to automatically raise the invoice, collect payment on your behalf and mark your invoices as paid!






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