Misallocated Items

Overview

The Misallocated Items bookkeeping data check feature identifies transactions in Xero and QuickBooks Online that have been coded to a broad/vague account, whereas it may be better suited to being coded to a more specific account code. An example is when a purchase of stationery is coded to “General Expenses”, rather than “Office Stationery”.

Transactions checked include:

• Supplier Bill Line Items
• Customer Invoice Line Items
• Money Out
• Money In

The value threshold over which transactions show up as an issue on this bookkeeping check feature can be adjusted on the settings page of Xenon Connect (depending on the organisation’s policy regarding materiality).

The purpose of the check is to allow the user to verify that any high-value items have been appropriately coded to a specific and meaningful account code.

By default, the following account codes are monitored (if they exist), as items of a capital nature are often posted here in general (in error):

• 429 – General Expenses (Xero)
• Accounts containing the terms “Uncategorised” and “Unapplied” (such as “Uncategorised Asset”, “Uncategorised Expense” & “Uncategorised Income”) (QuickBooks Online)

Additional account codes can also be monitored from the settings page in Xenon Connect.

Details provided for each transaction include:

• Type (e.g. invoice, bill, money in or money out)
• Contact name
• Date of transaction
• Details/description
• Net Amount of transaction
• Account used (being one of the account codes added in settings)
• “Change to” value (drop down menu allowing the user to select a more appropriate account code)

Changing the transaction’s account

If you decide that the account currently given to the transaction in Xero is inappropriate, you can quickly and easily change it using one of the following methods:

1. The drop-down menu allows you to pick any account, for example – a profit and loss expense code – if appropriate. Then, click the “Save Changes” button.
2. If the transaction is reconciled (bank item) or has a payment or credit note allocated to it (invoice or bill) within Xero, then the account value cannot currently be updated directly from Xenon Connect (although we hope to allow this if Xero API constraints are updated in the future). Therefore, currently, such transactions must be updated using the “Edit in Xero” button.

View transaction in Xero/QuickBooks Online

For each misallocated item found, you are able to click the View button after which you will be taken directly to the applicable transaction within your Xero/QBO account. This will allow you, for example, to investigate the item further.

Dismiss Item

If you decide that a particular transaction already has the correct account code used, then you can click the “Dismiss” button to hide the item and prevent that transaction from appearing in the list again.

Show Dismissed Items

You can quickly include all previously dismissed transactions, by enabling the “Show dismissed items” toggle.

This allows you to recheck and edit any accounts that have previously been dismissed in error.

Bulk Process Options

The following bulk actions can be taken by using the check boxes and Bulk Process Options drop down menu:

• Multiple transactions can be dismissed in bulk