Ignition will mark your invoices as paid automatically, but you'll still need to reconcile the payouts you receive in your bank account. Read on below for instructions on how to set up a bank a rule to simplify this process.

If you have Xero integrated with your Ignition account, and you enable payments for your proposals, your invoices will automatically be marked as paid in Xero once the payment has cleared in your bank account.

The first time a payment is processed in by Ignition, a clearing account will be automatically created in your Xero Chart of accounts, called IGNPayments - Ignition Clearing Account.

As payments clear, they are listed as debit transactions in the clearing account, and linked directly to the corresponding invoice, marking it as paid.

If you click into the transaction you can see it is linked to the invoice:

And we can see the payment has been applied to the invoice and it is marked as paid.

Rather than depositing each and every payment you receive via Ignition individually, each day (depending on if payments have been received) we pay you a 'Practice Payment' which is a lump sum of all the client payments that have cleared overnight. This will save you hours in reconciling your bank statement!
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If you wish to reconcile your bank statements as well, you will need to allocate each of these Practice Payments to the Ignition Clearing account to balance them. 

Please see below for the specified rule depending on when you have received your first payout:

Please create a new receive money bank rule and label the Description as IGNITIONPAY, so the payments are reconciled correctly. Also, remember to check you have the correct tax rate set.

See below for an example of the rule you will need to create.

If you are a business based in New Zealand, you will need to add a new tax code as the default tax rates that Xero installs does not include 'GST Exempt' codes.

When you create the new code, you'll need to ensure that this new tax rate is selected when you are creating the bank rule.

To add a 'GST Exempt' code navigate to Settings → Advanced Settings.

Then, navigate to Tax rates → New Tax Rate.

Then, add the new tax rate below:

After you are done, click Save and continue to set up the bank rule as described above.