The Panacea Xero integration automatically synchronises on account transactions and daily cash up totals between Panacea and Xero.
In this articile we look at how to reconcile payments against these objects in Xero.

Panacea automatically creates an 'accounts receivable' invoice in Xero for every 'on account' transaction.
The customer can choose to make payments against these invoices either over the counter (e.g. cash or card over the counter) or via payment into your bank account.

If the customer pays over the counter than the payment will be recorded against the sale in Panacea and against the corresponding invoice in Xero.
Any such payments received will be included in the daily totals for each payment type.
Panacea will include a list of 'over the counter' payments received against on account invoices in each cash up report.
When reconciling bank deposits against daily cash up invoices you will need to reconcile payments against any on account invoices inclued in the deposit also.

If the customer pays via bank deposit then nothing else needs to be done in Panacea to reconcile payments against invoices.  Simply reconcile the payments as normal in Xero and the integration will automatically update the payment status of the invoice in Panacea.

Daily cash up invoices are created in Xero with payments applied.  This means that these invoices have nothing left to pay, but you do still need to reconcile bank deposits with these payments.
This differs slightly from the process of reconciling deposits against on account invoices, which involves finding the invoice in Xero and reconciling the deposit against it.
To reconcile deposits against these payments, simply find the relevant deposit in the Xero bank account feed and choose the 'Find and match' option for reconciling it.  Use 'payment' as the search string and you will be presented with a list of unreconciled payments (each prefixed with 'Payment' and including a reference to the payment type).
Select all of the payments associated with this deposit and reconcile as normal.