Xero - Integration Setup Guide

Here we'll cover:

• Step 1: Connecting Xero to TradeGecko
• Step 2: Creating Default Ledgers and Enabling 2-way Payment Sync
• Step 3: Connecting your Accounts to TradeGecko
• Understanding the TradeGecko-Xero Integration

Step 1: Connect Xero to TradeGecko

Go to the Browse Apps section and click on Accounting.

Click the Xero tile.

Click the 'Install App' button.

In the next dialogue box, click "Connect Now" to integrate Xero with TradeGecko.

A popup window will load where you'll need to grant TradeGecko access to your Xero account. Click the "Allow Access" button.

Step 2: Create Default Ledgers and Enable 2 way-payment sync

Xero Ledgers

Before connecting Xero to TradeGecko you need to make sure certain accounts exist in your Chart Of Accounts in Xero. These are the 4 default accounts TradeGecko will push data to.

If you do not have these default accounts, we will help you create them in Xero. You can choose to toggle on (or off) this creation. If you already have these accounts, you will not see this option during your setup process. 

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.

Here's how Purchase Orders work with TradeGecko:

• Creating a Purchase Order will increase the Purchases account and decrease Accounts Payable.
• Receiving Purchase Order will increase Stock On Hand and decrease Purchases account.

Learn more about Sync Details between Purchase Orders and Xero Bills.

Two-way payment sync

You can choose to toggle on (or off) the two-way payment sync. If you switch off the two-way payment sync, the integration will push payments from TradeGecko to Xero only.  

Step 3: Connect your accounts to TradeGecko

Next, you will be prompted to link the ledgers in TradeGecko to the appropriate Xero account ledgers. These are the accounts that you have set up earlier.

Next, link up your stock adjustment reason with its designated ledger account. This is to ensure that you can track the stock changes such as Shrinkage or Damaged Goods in your financial book.

Now, you are done with the Basic Setup!

You can finish the integration, or click “Advanced Setup” to customize your Xero integration. You may or may not see the customization, depending on your account configuration.

Custom Sales Ledgers: You can push sales information of selected Invoices or Relationships to your created custom ledgers. To learn more about custom ledger account for Xero, click here.

Custom Payment Methods: Link your payment methods specific Xero ledgers (where necessary), as seen here in the image below;

If you have a Sales Channel integrated (e.g. Shopify or WooCommerce), refer to these articles on how to map Payment Methods with TradeGecko.

• How to map Payment Methods between TradeGecko and Shopify?
• How to map Payment Methods between TradeGecko and WooCommerce?

Add Tracking Categories: If you have tracking categories enabled on your Xero account, you can link them here.

Learn more about XERO Tracking Categories here.

Link Sales Channels: If you have sales channels, you can select which sales accounts and shipping revenue accounts to link to. You will be prompted to change your Default Sales Account On option to Sales Channel if it is not already set to Sales Channel. This is useful for businesses with more than one sales channel to track the sales coming through from each sales channel. You can assign each Sales Channel to a separate ledger account. Please click here for more information.

The implication of changing your account default settings to Default Sales Account On: Sales Channel, is that you will not be able to track sales through Variants or Relationships. To learn more, click on this article.  

On this page, link the sales channels and accounts accordingly.  

Once you have completed the setup process you will get a success notification within TradeGecko. You can also check that the setup is done accurately by going to My Apps > XERO > Dashboard.

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 a decrease in current assets from your 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 assigned Inventory Adjustment ledger account respectively