No, marking an automatic invoice as Paid in Recurly will NOT update the corresponding invoice in Xero as Paid. The invoice in Xero will remain with a status of 'Awaiting Payment.'
Therefore, you will need to manually enter the external payment to the invoice in Xero by:
- Opening the invoice in Xero
- Scrolling down to 'Receive a Payment'
- Enter the details for the external payment
- Click Add Payment