Contents:
- What is VostroPay Auto-Reconciliation?
- The Problem It Solves
- How Auto-Reconciliation Works
- Setting It Up
- Frequently Asked Questions
What is VostroPay Auto-Reconciliation?
If your club uses VostroPay for online payments and Xero for accounting, you can enable automatic bank reconciliation. This feature saves you the time of manually matching Nuvei bank deposits to individual registration payments in Xero.
Note: To enable Auto-Reconciliation, contact support@sportsground.co.nz. It is important to note that once enabled, all forms set up with payments against them will retrospectively updated to inherit the new settings.
The Problem It Solves
When members pay for registrations online via VostroPay, each payment creates an individual invoice and a payment in Xero. However, Nuvei (the payment processor behind VostroPay) doesn't send the money to your bank account one payment at a time, they send a single lump-sum deposit each day, minus their processing fees.
This means your bank statement shows a single deposit (e.g. $1,523.45) but Xero has dozens of individual payments. Matching these manually is time-consuming. The auto-reconciliation feature simplifies this into a one-click process for a payment period.
How Auto-Reconciliation Works
When you enable this feature:
1. Payments first go to a clearing account. Each time a member pays via VostroPay, the payment is recorded in Xero against a temporary "clearing" account instead of your real bank account.
2. Sporty processes the daily settlement. Each day, Sporty receives a detailed settlement file from Nuvei listing every transaction and the exact fees charged. Sporty automatically:
- Records the processing fees as an expense in Xero
- Creates a bank transfer from the clearing account to your real bank account for the net amount
3. Your bank account shows a single transfer. This transfer matches the actual Nuvei deposit in your bank, making reconciliation a one-click process.
The clearing account acts as a temporary holding area and should always net to zero (or very close to it).
Setting It Up
Note: You must first have contacted Sporty at support@sportsground.co.nz for this feature to be enabled before you can proceed setting it up.
Step 1: Create the Xero Accounts
You'll need two accounts in Xero:
- A clearing account (bank type): e.g. "VostroPay Clearing". This is where payments are temporarily held before being transferred to your real bank account.
- A fee expense account (expense type): e.g. "Card Processing Fees". This is where VostroPay's transaction fees are recorded.
Step 2: Enable in Sporty
1. Login to Sporty and go to Admin Settings.
2. Navigate to Connections, then to the Accounting section
3. Scroll down to the section called VostroPay Settlement Reconciliation
4. Tick "Enable automatic VostroPay reconciliation"
5. Select your clearing account and fee expense account from the dropdowns
6. Click Save
Note: When auto-reconciliation is enabled, "Automatically create invoices" is turned on for all your registration forms. This is required so that every Vostro payment has a corresponding Xero payment.
Frequently Asked Questions
What if a transaction doesn't match?
Please contact support@sportsground.co.nz with any queries.
What about refunds?
Refunds appear as negative amounts in the settlement. They reduce the total daily payout. If a day's refunds exceed the payments (rare), the payout will be negative and will require manual handling.
Can I turn it off?
Yes. Future payments will go directly to your regular bank account. Any existing clearing account entries will remain in Xero.
Do I need to do anything each day?
You only need to reconcile the daily bank transfer in Xero when you do your regular bank reconciliation, which is now a one-click process.