Best Practices for Handling EFT Payments in Xero When Using Pencil

Best Practices for Handling EFT Payments in Xero When Using Pencil

If you use PencilPay to process payments and also accept EFT (Electronic Funds Transfer) payments directly from your customers, it’s important to ensure your accounting records remain synchronized and the automated features of the Xero <> Pencil integration continue to work as intended.

Issue: Deleted Payments Break Automation

When a payment processed by Pencil is manually deleted from Xero, it can break Pencil’s automation logic, causing future payment reconciliations and syncing processes to fail or produce errors.

Recommended Best Practice

To prevent this issue:

• Never delete Pencil-processed payments directly in Xero.

• If a customer sends an EFT payment and Pencil has already processed the payment, apply the EFT payment as a credit note in Xero manually instead of removing the original Pencil payment.

• This method preserves system links and ensures that both Pencil and Xero remain consistent, keeping your automation and integration working smoothly.

If You’ve Already Deleted a Pencil Payment in Xero

If you’ve deleted a Pencil payment in Xero and automation is now disrupted:

1. Refer to this support article for step-by-step instructions:
   How do I re-push a payment from Pencil to my accounting software

2. Follow the guide to re-sync or re-push the payment back into Xero so that both systems are properly updated.

Summary

• Only apply EFT payments as credit notes when both Pencil and direct EFT payments occur for the same invoice.

• Do not remove Pencil-processed payments from Xero, as this disrupts automation.

• Use support resources to fix any issues that occur if a payment is deleted.

Need Help?

If you have any questions or need further assistance, contact Pencil Support for personalized help ensuring your payment syncing and automation remain intact.