When using ScaleXP's Stripe integration with Xero, you are effectively replicating the Stripe Invoices in Xero. 

When you do that, the invoices will be increasing your Accounts Receivable as a result. In order to reconcile these invoices against the Stripe payments, you can add your Stripe account as a Bank Account in Xero. 

When the integration creates the invoices in Xero, it brings in important details like Customer Name and Email which Xero then attempts to automatically reconcile against the invoices. 

There may be some invoices that are not automatically matched and need manual matching. Since Stripe maintains a balance of funds on their platform for your shop, they act like any other bank account for your business. 

As a best accounting practice, you'll want to create a new bank account in Xero to reflect the funds Stripe holds. 

When Stripe transfers funds to your actual bank account, you'll simply "transfer" those funds in Xero from your "Stripe Funds" bank account to your actual bank account. 

Rather than have a dedicated Stripe account in your Chart of Accounts for Stripe as Undeposited Funds, we recommend having a dedicated account that is a Xero Bank Account instead. 

Because you'll be paying for expenses like payment processing fees, issuing refunds, etc. all from this specific account, it acts more like a real bank account than simply a place undeposited funds are held. To do this, just select "Add Bank Account" from the Bank Accounts options in Xero. Then search for Stripe to connect. 

Sign in the Stripe and select the appropriate Stripe account. 

Xero will automatically offer to create a Stripe bank account for each Stripe invoice currency. 

Click finish to view your new Bank Accounts. Initially you will see a nil balance and no transactions; new transactions will be picked up as payments are made in Stripe going forward. 

NOTE: Remember that Stripe does not refund payment processing fees.