How to do a part payment of Invoice

This scenario will occur when a customer or client is making a part payment for an invoice. For example, the client may send through a payment of $1,000 for an invoice worth $2,080.

If this is the case, follow the steps below to process the payment in Xero.

1. Go into the Bank reconciliation function. On the left will be a column with all the bank transactions, spent and received.
2. Find the part payment that has been sent through.
3. On the right is a column of matching transactions in Xero. However, because the payment  is more than the invoice total there may not be a matching transaction here. Instead there will be a box with multiple tabs.

4. Click the Find match link on the right.
5. Select the customer that the payment relates to by clicking the check box.

6. Then select the Split option which will appear once a transaction is ticked on the same line.

7. A Split transaction box will appear. Type in the amount that was received and select Split.

8. This will split the invoice and allow you to apply the payment. Click Reconcile to reconcile the entry.