How to Create a Bank Rule in Xero

Quick summary

A Xero bank rule lets you automatically categorize recurring transactions during bank reconciliation, saving time and reducing manual data entry. Once configured, the rule applies instantly to matching transactions based on the conditions you define.

Steps

1. On Xero's main dashboard, click the More Options button next to a bank account.
2. Select Bank Rules from the available options.
3. Click Create Rule at the top-right corner of the Bank Rules page.
4. Choose the type of transaction you want the rule to cover (e.g., spend, receive, or transfer money).
5. Configure how the bank rule applies by selecting your preferred application condition using the radio button.
6. Add conditions by choosing a Field and Condition type, then enter the corresponding value in the input field.
7. Fill in the remaining required details to complete the bank rule setup.
8. Review your entries and click Save to finalize the rule.
9. The bank rule is created and enabled instantly, ready to apply during your next bank reconciliation.