How can I close my books in Xero with unreconciled transactions?

At the end of each period, when you want to close your books (and period in Xero), there might still be transactions left in Xero which have not been coded, are under dispute internally or haven’t got the correct backup documentation.

If you close your period in Xero after running a formal set of accounts (to ensure that the numbers do not change from those presented) then you need to clear all outstanding items in the integration before running your accounts. The integration is not able to post into a closed Xero period and you cannot change the date of a Soldo transaction, as it is a bank item.

We suggest you code these to a P&L nominal code named “Uncoded transactions” and then journal the transactions in future months to the right nominal and tracking codes when available. If you need to add attachments, you can do that at a later stage in Xero or on the journal to clear.

Please note, some organisations, where the amounts still outstanding are not material, may choose to only formally close periods at quarter or year-end and this will depend on your reporting requirements.