Allocating Payments to Invoices

Article Contents

1. Introduction
2. Automatic Payment Allocation via Xero Integration
3. Manually Applying Payments in Hiro

Introduction

Allocating payments to invoices is an essential part of managing your financials in Hiro. This process ensures that your records remain accurate and up-to-date, whether you're working directly within Hiro or integrating with Xero. Here’s a guide on how payments can be allocated to invoices in Hiro.

Automatic Payment Allocation via Xero Integration

If your Hiro account is connected to Xero, payments can be automatically allocated to invoices. Here’s how it works:

• Receipt the Payment in Xero
  Payments are applied to the corresponding invoice in Hiro based on the invoice number, which must match exactly between platforms.

  Note: Check for discrepancies in invoice formatting, such as leading zeroes or prefixes like "INV-". For example, invoice 0007913 is different from 7913. You can configure invoice prefixes and formatting in Hiro's Invoice Settings.

• Synchronise Changes Automatically

  • If a payment is removed from an invoice in Xero, the payment is also removed in Hiro.
  • If a credit note is applied to an invoice in Xero, this allocation will reflect in Hiro. For more details, see our separate article on Allocating Credit Notes.

Important: Before applying payments, ensure your Hiro account is properly connected to Xero. Learn more in our article on Connecting Hiro to Xero.

Manually Applying Payments in Hiro

If your Hiro account is not connected to Xero or you encounter data misalignments (e.g., after importing data during initial onboarding), you can apply payments directly in Hiro. This method does not sync payment information to Xero.

Steps to Manually Apply Payments:

1. Navigate to Financial > Invoices
   Go to the Invoices section in Hiro.

2. Click the "Receive Payment" Button
   This opens the payment allocation page.
   
   

3. Enter the Billing Entity
   Specify the billing entity associated with the invoice being paid by searching contacts in the Received from text box.

4. Choose Payment Method
   Select a payment method from the dropdown menu (e.g., direct deposit, credit card).

5. Enter the Date of the Payment
   Use the actual date the payment was made by the customer.

6. Enter the Amount Paid
   Specify the payment amount. You can allocate one payment across multiple invoices.

7. Select the Invoice(s)
   In the list of invoices, select the ones you wish to apply the payment to.

   • Splitting Payments:
     If the customer has partially paid an invoice, click the Split button next to the invoice number. In the popup window, enter the amount to proportionally allocate to the invoice.

8. Click "Save Payment"
   Save the payment to finalise the allocation.