When a Customer pays you directly (Pay-Direct), it will be logged on your Marmalade account (M-Balance) and either cleared when you repay it to Marmalade or deducted from your next cash-in.
Invoices that are cashed-in are marked as paid, so when you get paid directly for a cashed-in invoice there is no invoice to reconcile it to. When this happens you should notify us by following the steps in this article here.
Once you've notified us you'll be able to reconcile these invoices following the steps below.
How to reconcile the pay-direct in Xero:
Once notified we will create a Pay-Direct Invoice in your Xero account that will enable you to reconcile the payment received from your customer.
If the payment received was for an individual invoice then a Marmalade Pay-Direct invoice will be generated for you to reconcile once the pay-direct is reported.
If the payment received was for multiple invoices you will need to search for the invoices in Xero, to do this follow the steps below:
- In the reconciliation screen select 'Find a Match'
- Type 'Marmalade' into the search menu that appears
- Select the appropriate invoices that should be reconciled to the payment and then select 'OK' to complete the reconciliation
If you wish to turn off the Pay-Direct invoice and reconcile payments manually to the Marmalade clearing account you can contact us at support@withmarmalade.com.
How to repay the funds to Marmalade:
When it comes to repaying Marmalade for the pay-direct there are 2 options, either repay the funds to Marmalade directly OR use cash-ins to pay down the outstanding M-Balance.
Option 1 - Repay the Funds to Marmalade:
- You can repay the funds to Marmalade by transferring the amount on your M-Balance to your Virtual Bank Account. The details of your Virtual Bank Account can be found at the top of your Marmalade Dashboard.
- Once you pay the funds back to Marmalade you'll need to reconcile the outgoing payment
- To do this simply use the manual reconciliation tool in Xero and select the "Marmalade Clearing Account" as the account to reconcile the payment to
Option 2 - Use cash-ins to pay down the outstanding M-Balance:
- If you decide to pay down the M-Balance owing to Marmalade using cash-ins these payments will be automatically reconciled in Xero when you cash-in your next invoices until the total amount is repaid.
Please note: You will not receive any funds from Marmalade via cash-ins until the total amount outstanding is repaid
Option 3 - Use payments to pay down the outstanding M-Balance:
- If the funds for the payment made directly is not returned to Marmalade before you receive the next payment from your customer that payment will be used to settle the M-Balance owing to Marmalade. These payments will be automatically reconciled in Xero when you until the total amount is repaid.
Please note: You will not receive any funds from Marmalade via until the total amount outstanding is repaid (this only applies to cash-ins that have been paid directly, invoices that you're liable for and have not been settled after 2 weeks or long overdue invoices that you're liable for.