Bill.com shows each payment made in bill.com in your accounting software in a special account (named Bill.com Money Out Clearing - this is automatically created by the sync), and shows a lump sum withdrawl for all payments made at the same time in your accounting software’s bank account. Let’s take the below scenario and follow the process:
Step 1: You schedule 3 bills for $100 each (from different vendors) to be paid using Bill.com on the same process date
- Bills are marked as scheduled for payment in Bill.com
- Bill.com syncs the 3 individual payments into an account named “Bill.com Money Out Clearing” in your accounting software. This is a temporary holding account similar to an “Undeposited Funds” account
- Bills become paid in your accounting system
Step 2: On the process date, Bill.com processes all 3 payments
- Bill.com makes a lump sum withdrawal of $300 from your bank account
- Bill.com initiates the payments to each vendor
- Bill.com syncs a $300 entry to the Bill.com Money Out Clearing Account and to your bank account in your accounting system. The Bill.com clearing account will balance out to zero (3 $100 individual payments and $300 lumpsum)
Step 3: Reconciling your bank account is easy and effortless.
Your bank statement feed will have a debit for the $300 withdrawn by Bill.com which will match against the $300 credit made to the bank account by the sync. You don’t have to worry about reconciling the individual bill payments! If you need to see them, you can find them in the Bill.com clearing account or Funds Transfer detail report in Bill.com.