Reconciling Payouts

Learn about what you need to set up to reconcile your payouts in your connected ledger!

Nicole Baptiste avatar
Written by Nicole Baptiste
Updated this week

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

Click the arrows to expand the article depending on the ledger you are using.

Xero - Bank rule

Rather than depositing each 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!

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.

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.​

Click image to enlarge!

QuickBooks - Transfer rule

By setting up a transfer rule in QuickBooks, payouts move from the practice’s bank account into ‘Undeposited Funds’, balancing the payment and reconciling the invoices.

Please note: The bank rule in this article is only suitable if the Undeposited Funds account in QuickBooks is being used solely to record payment of invoices from Ignition.

How to Set Up The Rule

1. In QuickBooks, go to Banking Rules → New Rule.

2. Create the following rule and click Save. The transfer rule has now been set up.

How to Reconcile the Payout

Once the payout from Ignition has been received, it will need to be reconciled against the invoices. To complete this process:

1. In QuickBooks, → Banking tab Banking.

2. Identify the payout from Ignition in the list of transactions (e.g. ‘Ignitionpay’ will appear as the description). QuickBooks will have automatically recognized the payout from Ignition and applied the transfer rule. Click Record Transfer.

Once you have clicked Record Transfer, the transaction will disappear from this menu and will be transferred to the Undeposited Funds account.

3. Next, you'll need to record the transfer. To record the transfer > Accounting > Chart of Accounts, and on ‘Undeposited Funds’, select > Account history. The total balance of the Undeposited Funds account should now equal $0.

Note: Any transaction with an ‘R' next to it has already been matched (e.g. from a previous reconciliation) and won’t be recorded in the total balance.

4. Lastly, you'll need to record the deposit. Select + New Bank Deposit. This will populate a list of payments in Undeposited Funds that haven’t yet been matched. Tick off all the invoice payments and payout from Ignition, and check the amount equals $0 (top right-hand side.)

5. Once the amount equals $0 and you’re happy, click Save and new. The account has now been reconciled and no further action is required.

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