Things that sync include:
- Purchase Orders
- Stock Adjustments
- The values for Stock on Hand and Cost of Goods Sold
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.|
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.
Firstly log into your TradeGecko account and go to the Settings menu (bottom of the left sidebar).
Go to the App Store tab
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.
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
- 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