Zomentum's seamless integration with Xero ensures that your payment processing and bookkeeping are as efficient and accurate as possible. This guide provides a detailed overview of how financial transactions are managed within the Xero environment when using Zomentum.

1. The Zomentum Payments Suspense Account

Upon integrating Zomentum with Xero, a specialized bank account called the Zomentum Payments Suspense Account is created within your Xero organization. This account is designed to temporarily hold customer payments, serving a crucial role in managing the flow of funds.

2. Customer Payments

When a customer makes a payment through Zomentum, the process is reflected in your Xero accounts as follows:

  • Payment Creation in Xero: The customer's payment is recorded and added to the Zomentum Payments Suspense Account. This ensures that all payments are accurately tracked and securely held until they are ready to be transferred to your bank account.

3. Processing Payouts to Bank Accounts

The process of transferring settled payments to your bank account is straightforward and transparent:

  • Transfer from Zomentum Payments Suspense Account: Once Zomentum processes the payment payout, a transfer is recorded from the Zomentum Payments Suspense Account to your designated bank account in Xero. This accurately reflects the actual movement of funds to your bank, ensuring your financial records are up to date.
All payments due to be paid out on any particular day will be grouped together into a single deposit to your bank account and in Xero.

4. Fees & Surcharges or Adjustment Fees

Zomentum's integration with Xero handles the nuances of payment processing fees and additional charges efficiently:

  • Expenses Recording: At the time of creating the payment in Xero, any payment processing fees are directly recorded as expenses within the Zomentum Payments Suspense Account.  
  • Income Recording: Similarly, any surcharges or adjustment fees that you choose to charge your customers are recorded as income at the same time.

This direct recording method provides an immediate and clear account of transaction-related costs and revenues.

Final Outcome

The integration between Zomentum and Xero is designed to ensure that your bookkeeping is automatic, accurate, and reflects the true state of your finances. The Zomentum Payments Suspense Account plays a key role in this process, acting as a temporary holding area for payments before they are transferred to your bank account, with all related fees and incomes accounted for directly within the account. This approach ensures that the deposit into your bank account exactly matches the net amount paid out, after accounting for any fees and surcharges.

For more information on configuring your Zomentum and Xero integration settings, please refer to our detailed setup guide or contact our support team.