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Reconcile cash transactions using cash coding

Use cash coding to quickly reconcile imported bank statement lines that represent cash transactions you haven't entered into Xero. Cash coding lets you code multiple statement lines at once and is quicker than using the Reconcile tab to reconcile your bank accounts. When you save and reconcile, Xero creates a matching spend or receive money transaction.

You can access the Cash Coding tab if you are an Adviser or if the option has been added to your user role. You can request this option from a user with Manage Users access for the organization.

Image of cash coding screen

About the Cash Coding tab

Get to cash coding by clicking on the Cash Coding tab on any of the bank account screens.

Image showing cash coding link.

The same unreconciled statement lines display on both the Reconcile and Cash Coding tabs.

Use the Cash Coding tab to:

Image showing tick.Reconcile cash transactions you haven't entered into Xero

Image showing tick.Create a new bank rule based on an imported and unreconciled bank statement line

Image showing tick.Apply a saved bank rule to one or more statement lines

Image showing red cross.Don't use cash coding to reconcile invoices, credit notes, expense claims or transfer money transactions. If you use cash coding to reconcile these, you'll create a spend or receive money and your transaction in Xero will remain unpaid.

Xero hides statement lines with suggested matches by default in the Cash Coding tab.

Using cash coding

Important.  For best results, reconcile no more than 100 statement lines at a time.

    1. Manually import your bank statement lines, if you don't receive these automatically.
    2. Go to the Cash Coding tab of the bank account and review fields Xero has completed. For bank statement lines that match bank rules, Xero populates cash coding using the conditions of your rule. Bank rules
    3. Sort any columns before coding. This is because sorting column headings refreshes the page, so you'll lose any selections you haven't yet reconciled. You can sort by Date, Payee, Reference, Description, Spent or Received columns.
    4. If you have transactions that might be easier to manage using a rule, you can create a new bank rule or apply an existing rule to statement lines directly in the Cash Coding tab.
    5. Code the remaining cash items by completing missing fields for statement lines. You don't have to complete the payee, tracking or description fields. You can also split transactions.View comments to help code transactions correctly
    6. Click Save & Reconcile All to automatically create spend and receive money transactions and reconcile all transactions.

To quickly undo any changes you've made while coding, click Discard changes. Click Uncheck all to remove any selections you've made.

Use keyboard shortcuts to make cash coding even faster.

Shortcuts in cash coding

If you complete a field and it's one of multiple items checked, moving away from that field will populate the other rows selected with the same information.

Use these navigation tips and shortcut keys to make cash coding even faster:

General cursor navigation using the keyboard or mouse

Key Action
Enter Moves down one row
Shift + Enter Moves up one cell
Tab Moves forward to the next cell
Shift + Tab Moves back to the previous cell
Click + drag bottom of grid with mouse (for non-IE users) Increases rows displayed in cash coding grid

Quick actions using the keyboard (from all editable fields except Description)

Key Action
+ Copies Account, Tax Rate & Tracking from the row above into the current row
/ Opens a quick Spend or Receive Money window so you can split transaction over multiple lines
Shift + Down Arrow Check the box for the current row & moves down one row
Alt + Down Arrow Changes a Payee name that is ALL CAPITALS to title case. For example, JOHN DOE changes to John Doe 

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