IMPORTANT: To use Pinch with QuickB2B and Xero you will need to already have a a QuickB2B account and a Xero account. Please ensure you have followed the steps in Setup Guide | Pinch with QuickB2B and Xero before reading this article.
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STEP 1: Setting up the Pre-Approval (Debit Authority) in Pinch
- Log into your Pinch account.
- Click on Customers from the left menu and then click on Manage Pre-Approvals.
- Locate your Wholesale Customer(s) and tick the box in the right hand side column, and then click Send Pre-Approvals.
- A confirmation modal will popup confirming you are wanting to send a Pre-Approval to the selected Customer(s). Click Send Pre-Approvals.
- A final confirmation modal will popup confirming the Pre-Approval(s) has been sent successfully.
- Revisiting the Customers page will show the Status of the Wholesale Customer in Pinch as Pre-Approval Sent.
- Your Wholesale Customer will receive an email from Pinch with a link where they can complete the Pre-Approval Request.
- The link opens an online form where the Wholesale Customer can choose their Payment Method (with any surcharged fees clearly shown).
- Once a Payment Method is chosen, the Wholesale Customer can add their details and information into the remainder of the form and then click Confirm Agreement.
- A green box will appear showing a confirmation message that reads Complete! You have successfully completed the Pre-Approval with [business name].
- Your Wholesale Customer will receive second email confirming the activation of the Pre-Approval, along with a link where they can update their Payment Method or cancel the agreement in the future.
- You will receive an email confirming that your Wholesale Customer successfully completed the Pre-Approval Request.
- Revisiting the Customers page in Pinch will show the Wholesale Customer's Status as Active. This means Invoices raised in Xero for this Wholesale Customer will be automatically debited on the Invoice Due Date.
STEP 2: Placing a Wholesale order through QuickB2B
- Log into your QuickB2B account.
- Hover over Orders in the top menu and then click Add an Order from the submenu dropdown.
- Search for your Wholesale Customer in the Search Bar and click on their name from the dropdown list.
- Add the quantity of items for the order as required and then click Add Customer's Order.
- Once the Wholesale Order has been placed successfully, you will see a blue banner reading Order has been placed.
- You will receive an email from QuickB2b confirming the Wholesale Order has been placed.
STEP 3: Shipping the Wholesale Order in QuickB2B, Exporting to Xero, and Approving the Invoice in Xero for Automatic Payment
- In QuickB2B, from the Current Orders page, tick the box on the left hand side of the Wholesale Order and then click Move to Shipped.
- A blue banner with a confirmation message reading Thank You. Your Order can now be found in Shipped Orders and should be Exported to Xero for Invoicing will then be displayed.
- Hover over Orders in the top menu and then click Shipped Orders from the submenu dropdown.
- Tick the box on the left hand side of the Wholesale Order and then click Export to Xero.
- A blue banner with a confirmation message reading Order Exported to Xero Software will then be displayed and a Xero icon will appear next to the Wholesale Order showing it has been Exported to Xero.
- Log into your Xero account.
- Click on Business from the top menu and then click Invoices from the submenu dropdown.
- Click on the Invoice that you recently Exported from QuickB2B to Xero.
- Click Approve (please don't make any changes to the Invoice or Line Items).
- A green box will appear displaying a confirmation message reading Invoice Approved.
- Xero will then sync with your Pinch account and add the Approved Wholesale Order Invoice into Pinch as a Scheduled Payment, ready to be automatically debited on the Invoice Due Date (due to the Active Pre-Approval setup for the Wholesale Customer in Pinch).
The Scheduled Payment can be viewed in Pinch on the Dashboard page when you first log in. - The Payment can also be viewed in Pinch in the Payments page under the Scheduled Payments tab. You can also use the Process Now tick box to process the Payments immediately rather than waiting until the Invoice Due Date for the automatic debit to occur.
- The Payment is also stored in the Customer's profile (which matches your contact in QuickB2B & Xero) in the Customers page in Pinch.
- When the Invoice Due Date passes or the Scheduled Payment is manually Processed, you will receive an email from Pinch notifying you of the Successful Payment.
- Your Wholesale Customer will also receive an email from Pinch with a Payment Receipt for the Successful Payment.
- The Wholesale Customer's email contains a link to view the online Receipt with additional information.
- The Payment can be viewed in Pinch on the Dashboard page when you first log in.
- The Payment can also be viewed in Pinch in the Payments page under the Successful Payments tab.
- The Payment is also stored in the Customer's profile (which matches your contact in QuickB2B & Xero) in the Customers page in Pinch.
- Pinch will then sync with your Xero file and apply the Wholesale Order payment to the Approved Invoice.
- This Payment is made into the Pinch Payments Clearance Account which you can find by clicking on Accounting from the top menu and then clicking Chart Of Accounts.
- Locate the CCCLEAR Pinch Payments Clearance Account, and click the $ value in the right hand side column.
- Here you will see Invoice Payments showing in the Debits column, showing a running balance of the Invoices paid but not yet settled.
STEP 3: Reconciling the Settlement of the Wholesale Order in Xero
- When Pinch settles funds to you, you will receive an email notification.
- You can view the Settlement in Pinch by clicking on Settlements from the left menu and then clicking on Processed Settlements.
- Clicking on a Settlement line will show you you the breakdown of the Invoice Payments and Pinch Fees that make up the Settlement total.
- This Settlement is entered in Xero as a Receive Money Entry into your Xero Bank Account nominated when you setup your Pinch account. You can see this Entry by going to the Dashboard in Xero and then click on the name of Xero Bank Account that matches the physical Bank Account Pinch settles funds to.
- Click the Account Transactions tab to see the Receive Money Entry which will show as Unreconciled until you upload your physical Bank Account statement into Xero.
- This Receive Money Entry is paid from the Pinch Payments Clearance Account which you can find by clicking on Accounting from the top menu and then clicking Chart Of Accounts.
- Locate the CCCLEAR Pinch Payments Clearance Account, and click the $ value in the right hand side column.
- Here you will see Settlements showing in the Credits column along with the Fee portion which is allocated into a separate Pinch Payment Fees Account. This will balance the Clearing Account back to $0 (assuming you have no Invoices paid but not yet settled, otherwise you will see a running balance of the Invoices paid but not yet settled.
- Once you have uploaded your physical Bank Account statement into Xero, head to the Dashboard in Xero and then click on the name of Xero Bank Account that matches the physical Bank Account Pinch settles funds to (you will see are items waiting to be reconciled).
- Click the Reconcile tab.
- Xero should auto match the settlement line on your physical Bank Account statement to the Receive Money Entry Pinch added earlier. Click Ok.
- You will see a confirmation message confirming the Entry was Reconciled.
- If you click the Account Transactions tab you will see the Receive Money Entry showing as Reconciled.