Xero- Integration Setup Guide

 
Note
TradeGecko does not sync with Xero's Inventory Management feature. Therefore your products in TradeGecko will not be synced with your products on Xero. Changes and updates to products on either end will NOT be reflected on the other.

Things that sync include:

  1. Invoices
  2. Purchase Orders
  3. Stock Adjustments
  4. The values for Stock on Hand and Cost of Goods Sold
  5. Payments

Step 1: Setting up your accounts in Xero

Before connecting Xero to TradeGecko you need to make sure certain accounts exist in your Chart Of Accounts in Xero. These accounts are the ones TradeGecko will push data to. It is likely that you will already have some of these accounts set up in Xero. In those cases, you do not need to create a new account. 

To create an account for Payments 

Go to Xero, Settings> Chart of Accounts> Add Bank Account 

Enter the relevant details and click 'Save'.  

For some businesses, payment accounts are represented as account ledgers. Please check with your accountant what is recommended for your business. This account (in Xero) will be linked to your Payments account in TradeGecko.

To create ledger accounts

Go to Xero, Settings > Chart of Accounts > Add Account. Add the following 4 accounts, with the recommended account type, code and name of account. If you are unsure, please check with your accountant on the specifics. 

Account  Account Type Code (or other unique identifier) Name of account Remarks
Sales Account Revenue  200  Sales The Xero integration pushes sales data into your main sales account. You may have an existing sales account in Xero by default called Sales but if it does not exist you will need to create it.
Purchases Account 

Current Asset*

 

300 Purchases

TradeGecko will push purchase order details into this account. You may have an existing purchases account in Xero by default called Purchases but if it does not exist you will need to create it. 

Note that this ledger account created in Xero will be linked to both the Purchases and Stock Purchases Account in TradeGecko. 

Inventory or Stock Asset Account  Current Asset SOH  Stock on Hand A current asset account to record stock on hand.
Cost of Goods Sold Account Expenses> Direct Cost COGS Cost of Goods Sold

An expense account for your Cost of Goods sold.

 

*For Purchases account, according to accounting best practices it is recommended that you use a Current Asset account for Purchases. For some businesses, Purchases can be taken as an expense. For clarification, please check with your accountant. 

Step 2: Connect Xero to TradeGecko

Now that you have your accounts set up you are ready to connect your TradeGecko system with Xero.

  1. Firstly log into your TradeGecko account and go to the Settings menu (bottom of the left sidebar).

  2. Go to the App Store tab

  3. Select the Xero application, read through the details and click Install

Step 3: Authenticate in Xero

You will be taken through to Xero where you will need to allow TradeGecko to access your Xero account.

Step 4: Connect your accounts to TradeGecko

You will then be prompted to link up the appropriate Xero accounts. These are the accounts that you have set up in Step 1.

It is recommended that you use the same ledger account for Purchases and Stock Purchases. It is usually assigned to (please check with your accountant what is most suitable for your business) the Stock in Transit account, Stock (clearance) account or Expense account. If you wish to track Stock in Transit, you can do so by renaming the 300 - Purchases account to Stock in Transit as they run through the same flow in this integration. 

Note
The difference between the Purchases and Stock Purchases is that the integration debits purchases goods amount from Purchases account when the bill for that Purchase Order is created. The integration then credits the purchased goods amount from Stock Purchases account when that Purchase Order is received. 

Done!

Once you have completed the setup process you will get a success notification within TradeGecko.

You can also double check the setup is correct by going to Settings>Apps and check that the Xero app shows that it is connected.

Understanding the TradeGecko - Xero integration

When you: 

- Invoice a sales order in TradeGecko, Xero records as an increase in revenue to your Sales account

- Pay an invoice in TradeGecko, Xero records an increase to your Payments account

- Create a purchase order in TradeGecko, Xero records an increase in current assets to your Purchases account

- Ship a sales order in TradeGecko, Xero records a decrease in current assets to your Stock on Hand account and increase in expense to your Cost of Goods Sold account

- Receive a purchase order in TradeGecko, Xero records an increase in current assets to your Stock on Hand account and decrease in current assets from your Stock Purchases account

- Create a stock adjustment in TradeGecko, Xero records accordingly, an increase/decrease in current assets to your Stock on Hand account and decrease/increase in expenses to your Cost of Goods Sold account respectively

Print Friendly Version of this pagePrint Get a PDF version of this webpagePDF
Have more questions? Submit a request
Was this article helpful?
3 out of 9 found this helpful

Comments

  • Avatar
    Rob Wibaux

    Great instructions, easy to follow, but would be great if the pictures matched up with the instructions as well.

  • Avatar
    Cameron Priest

    Hey Rob - I'll get one of the team to go through an update this so everything matches - thanks for the feedback,

  • Avatar
    Amy Singe

    Hey guys what about if you already have existing balances in Xero, all these instructions assume you have never used Xero before. Can you please advise?

  • Avatar
    Bea Shrewsbury

    As Amy

  • Avatar
    Toby York

    Can you push different product types to different accounts in Xero?

  • Avatar
    Cameron Priest

    Hey Toby,

    Not at this stage - but we're working on expanding the Xero integration at present.

    Thanks

    Cam

  • Avatar
    Cameron Priest

    Hey Amy,

    We will actually make adjustments from then on - so your existing SOH and COGs values will just be updated.

    Thanks

    Cam

  • Avatar
    Ian Hamilton

    Agreed, please update this guide ASAP. The TG to Xero integration is why many of us are using TG and this important setup info is not very well written and also out of date now with the recent changes.

  • Avatar
    Caroline Peckham

    The lack of clear guidance on integration is a shame. TradeGeko looks like a great package but has stiff competition and I don't have the time to work this out.

  • Avatar
    Cameron Priest

    Hey All,

    I've just updated this guide with the latest screenshots that you should see when you're setting up your Xero integration,

    Please let me know how you get on,

    Thanks,

    Cameron

  • Avatar
    Stephen Howarth

    It appears that the Xero user has to manually approve each Sale under Purchases-Bills in Xero in order for the COGs Account to update. Is this correct? It does not do it automatically?

  • Avatar
    Marinus Jansen

    HI - looking at Trade Gecko to integrate with Xero - show stopper for us is not being able to link products to more than one sales account. Have there been any changes recently in regard to this ?

  • Avatar
    Javier Calzada

    As above, we sell a mix of tax free and taxed products on our business and need to be able to break down each product in its own chart of account in xero. We are launching our wholesale system with tradecko in July and would love to have this feature already in place.

    Please let us know!

  • Avatar
    Tripti Simback

    I'm honestly struggling a lot here with the TG to Xero integration. Cannot seem to get the flow correctly such that my shipped sales orders on TG flow into Xero and properly reflect in the chart of accounts. The PO and A/P seems to flow, but the COGS does not. This is probably a deal breaker unless there is something I am missing. Also, the screenshots and naming conventions are out of date so it makes this setup process all the more confusing.

  • Avatar
    John Davey

    Something similar for me - I want shipping to come through from my Shopify store and be pushed to Xero with the correct ledger account code - by default it is added to the xero sales account.

NEW TO TRADEGECKO? START A 14 DAY FREE TRIAL, NO CREDIT CARD REQUIRED