This guide explains the process of adding products to your Xero Bookings system. You will learn how to configure item details, pricing, and accounting settings for your bookable services.
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00:00 – How do I start adding a product in Xero Bookings?
To get started with adding a product, you first need to navigate to the Bookings section within your Xero dashboard. From there, locate the menu option for products or services to begin the setup process for a new item.
💡 Action Steps
Navigate to the Bookings section
Select the Products or Services menu
00:15 – What information is required for the new product?
You need to give your product a name and a description. Make sure the name is clear so your customers know exactly what they are booking, and provide a detailed description that outlines what is included in the service.
💡 Action Steps
Enter a Product Name
Type in a detailed Description
00:30 – How do I set the price and sales account?
In the pricing section, enter the unit price for your product. You will also need to select the appropriate sales account from your chart of accounts so that the revenue is tracked correctly when a booking is made and invoiced.
💡 Action Steps
Enter the Unit Price
Select a Sales Account from the dropdown menu
00:45 – How can I configure the tax rates for the product?
You must ensure the correct tax rate is applied to your product. Select the tax rate that applies to this specific service from the list provided in the settings to ensure your financial reporting remains accurate.
💡 Action Steps
Select the applicable Tax Rate
01:00 – What are the bookable settings for the product?
To make this product available for bookings, you need to toggle the 'Bookable' switch. You can then define the duration of the service, such as how many minutes or hours the appointment will take.
💡 Action Steps
Toggle the Bookable switch to On
Set the Duration length
01:15 – How do I save and complete the product setup?
Review all the details you've entered to ensure everything is correct. Once you are satisfied with the names, prices, and account settings, click the save button to add the product to your active booking list.
💡 Action Steps
Review all entered details
Click the Save button
This guide covers how to set up and manage payment schedules for your customers. You will learn how to define payment dates, amounts, and specific terms to automate your billing process.
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00:00 – How do I get started with a payment schedule?
To begin setting up a payment schedule, you first need to navigate to the customer record or the specific invoice where you want the schedule applied. Once you are on the correct page, look for the 'Payment Schedule' tab or button to open the configuration window. This is where you can define how and when payments will be collected from your client.
💡 Action Steps
Navigate to the customer record
Locate the invoice
Click on the 'Payment Schedule' tab
00:45 – How do I add a new payment date?
To add a specific date for a payment, click on the 'Add New' button within the schedule view. You will be prompted to select a date from the calendar picker. Choose the exact day you want the payment to be processed or marked as due. Ensuring these dates are accurate is crucial for your financial reporting and automated reminders.
💡 Action Steps
Click the 'Add New' button
Select a date from the calendar picker
01:30 – How do I define the payment amount?
After selecting the date, you need to enter the amount for that specific installment. Type the numerical value into the 'Amount' field. You can choose to split the total balance into equal parts or enter custom amounts for each scheduled date depending on your agreement with the customer.
💡 Action Steps
Locate the 'Amount' field
Enter the payment value
02:15 – What is the process for setting up recurring payments?
If the payment should repeat, you can toggle the 'Recurring' option. This allows you to set a frequency, such as weekly or monthly. You define the interval and the end date for the schedule. This automation ensures that you do not have to manually create a new entry for every single billing cycle.
💡 Action Steps
Toggle the 'Recurring' option
Select the payment frequency
Set an end date for the series
03:00 – How do I assign a payment method to the schedule?
You need to specify how the money will be collected by selecting a payment method from the dropdown menu. This could be a saved credit card, a bank transfer via ACH, or a manual check. If the customer has a default method on file, you can select 'Use Default' to apply those details automatically to the entire schedule.
💡 Action Steps
Open the 'Payment Method' dropdown
Select the desired payment type
Optionally select 'Use Default'
03:45 – How do I save and activate the schedule?
Once you have entered all the dates and amounts, click the 'Save' button at the bottom of the screen. A summary of the schedule will appear for your review. Make sure to click 'Activate' or 'Confirm' to put the schedule into effect. Once activated, the system will begin tracking these payments against the balance of the account.
💡 Action Steps
Click the 'Save' button
Review the schedule summary
Click 'Activate' or 'Confirm'
This guide covers the essential steps for managing your billing cycle in Xero, from creating professional invoices to recording customer payments. Learn how to streamline your accounts receivable process and keep your financial records up to date.
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00:00 – How do I create a new sales invoice?
To get started with your billing, you need to create a new sales invoice. From the main dashboard, you go to the Business menu and select Invoices. Click on the New Invoice button to open the entry screen. You will begin by typing the name of your customer in the To field. If they are a new contact, you can add them on the fly. You'll then enter the date of the invoice and the due date. The invoice number will be automatically generated by Xero based on your settings, but you can manually override it if necessary.
💡 Action Steps
Go to the Business menu
Select Invoices
Click the New Invoice button
Enter the customer name in the To field
Select the Date and Due Date
Review the Invoice number
01:15 – How do I add line items and details to an invoice?
Once the header information is filled out, you move down to the line items to detail what you are billing for. In the Item column, you can select a pre-saved product or service from your inventory, which will automatically populate the description, account code, and tax rate. If you're not using items, you can manually type a description into the box. Enter the quantity and the unit price for the service or product. Ensure the correct account is selected so the revenue is tracked properly in your chart of accounts.
💡 Action Steps
Select an Item from the dropdown or type a manual description
Enter the Quantity
Enter the Unit Price
Select the appropriate Account code
Verify the Tax Rate
02:45 – How do I apply branding themes to my invoices?
You can change the look and feel of your invoice by using branding themes. On the right-hand side of the invoice screen, you'll see a Branding dropdown menu. You can select different templates that you have previously set up in your settings, such as a standard theme or one specifically for international clients. This allows you to control which logo appears and what payment terms or wiring instructions are displayed at the bottom of the document.
💡 Action Steps
Locate the Branding dropdown menu
Select the preferred branding theme for the invoice
Preview the invoice to ensure the logo and terms are correct
03:30 – How do I attach files or documents to an invoice?
If you have supporting documentation like a signed contract or a photo of completed work, you can attach it directly to the invoice. Click on the file icon in the top right corner of the invoice screen. You can upload a file from your computer or select a document already stored in your Xero library. You also have the option to toggle the 'Include with invoice' switch, which determines if the customer will see these attachments when they receive the invoice via email.
💡 Action Steps
Click the File icon
Upload a document or select one from the Library
Toggle 'Include with invoice' if the customer needs to see the attachment
04:20 – How do I approve and send an invoice to a customer?
After you've reviewed the details, you need to approve the invoice to post it to your general ledger. Click the Approve button at the bottom of the screen. Once approved, the Email button will appear. Click Email to open the sending dialogue. You'll see the recipient's email address, a subject line, and a standard message template. You can customize the text here before clicking Send. This sends a link to the online invoice, allowing your customer to view it in their web browser.
💡 Action Steps
Click the Approve button
Click the Email button
Review the recipient address and message text
Click Send
05:50 – How do I record a manual payment on an invoice?
When a customer pays you via a method that isn't automatically reconciled, like a check or a manual bank transfer, you need to record that payment manually. Open the specific invoice from the Invoices screen and scroll down to the 'Receive a payment' section at the bottom. Enter the Amount Paid, the Date Paid, and select the bank account where the funds were deposited. You can also add a reference number, like a check number, then click Add Payment. This will update the invoice status to Paid or Partially Paid.
💡 Action Steps
Open the approved invoice
Scroll to the 'Receive a payment' section
Enter the Amount Paid and Date Paid
Select the Paid To bank account
Enter a Reference
Click Add Payment
07:15 – How do I set up online payment services?
To get paid faster, you can connect payment services like Stripe or PayPal to your invoices. You do this by going to Settings and then selecting Payment Services. From here, you can click 'Add Payment Service' and follow the prompts to connect your account. Once connected, you can add these payment options to your branding themes. When your customer opens their online invoice, they will see a 'Pay Now' button that allows them to pay immediately using a credit card or other digital methods.
💡 Action Steps
Navigate to Settings
Select Payment Services
Click Add Payment Service
Connect your Stripe, PayPal, or other provider account
Assign the payment service to a Branding Theme
08:40 – How do I manage overpayments and credit notes?
Sometimes a customer might pay you more than what is owed, or you may need to issue a refund. For an overpayment, when you record the payment, Xero will recognize the excess amount and create an Overpayment transaction. You can then apply this credit to a future invoice. Alternatively, if you need to reduce the amount a customer owes before they pay, you can go to Invoice Options and select 'Add Credit Note.' This allows you to issue a formal credit that offsets the outstanding balance on the sales side.
💡 Action Steps
Record the full amount received to create an Overpayment
Navigate to Invoice Options on an existing invoice
Select Add Credit Note to reduce the balance
Apply the credit to the relevant invoice
10:10 – How do I send automated invoice reminders?
To help with credit control, you can enable automated invoice reminders. Go to the Invoices screen and click on the 'Invoice Reminders' link. Switch the reminders to 'On.' You can then configure the schedule, such as sending a reminder 7 days before the due date, on the due date, or several days after the invoice becomes overdue. You can customize the email template for each reminder level to maintain a professional tone while encouraging prompt payment.
💡 Action Steps
Go to the Invoices screen
Click the Invoice Reminders link
Toggle Reminders to On
Set the number of days for the reminder triggers
Edit the email templates for each reminder