For the Payoneer to Xero integration, powered by OneSaas, the "Withdrawal to Bank Account" Workflow creates Withdrawals in Payoneer as Bank Transfers in Xero.
Currently, in Xero, the user interface (UI) allows you to create a Multi Currency Bank Transfer transaction between two currencies directly. However, the same operation cannot be performed via the Xero API.
Xero have acknowledged this as a limitation and recommend the use of the following workaround.
Workaround as recommended by Xero
- Create a Suspense Account for each of the currencies in question (e.g. GBP and CNY)
- Transfer the Amount from the source Balance Account (say GBP) to the GBP Suspense Account
- Create Payments for any associated Fees in the GBP Bank Account
- Transfer the Amount from the destination Balance Account (say CNY) to the CNY Suspense Account
- Transfer the Amount from the CNY Suspense Account to the CNY Bank Account
The Bank Account mapped against the Withdrawal in the Workflow Configuration should display the correct transfer as initiated in Payoneer.
Using this recommendation, the integration automatically creates the Suspense Accounts in Xero (based on the Currency) and also performs the operations to create the transfer.
- The integration creates a Suspense Account for each of the Currencies (for Withdrawals only)
e.g Withdrawal from GBP Balance to CNY Bank Account
- Transfer GBP amount from GBP Balance to GBP Suspense Account (Spent)
- Payment for the Fee (includes all individual Fees as applicable) in the GBP Bank Account
- Transfer CNY amount from CNY Balance to CNY Suspense Account (Received)
- Transfer CNY amount from CNY Suspense Account to CNY Bank Account (that was mapped)
For a Withdrawal transaction from GBP to a Bank Account (mapped to CNY), there should be a “Spent” entry in Payoneer GBP Suspense Account and a corresponding “Received” entry in Payoneer CNY Suspense Account in Xero. The Bank Account should reflect the expected transfer.
Sample Workflow Configuration
Sample Bank Transfer as seen in Payoneer
As seen from a sample transaction in Payoneer which also includes 2 entries for Fees
Suspense Account for source (GBP) in Xero
Transfer from GBP (minus the Fee)
Bank Account for GBP in Xero
All transactions including Fee that was paid
Suspense Account for destination (CNY) in Xero
Transfer to CNY
Bank Account for destination (CNY) in Xero
The Account that is used for the mapping in the Workflow Configuration