Step 1: Connect Xero to TradeGecko
Go to TradeGecko BROWSE APPS > click XERO under Accounting.
Click INSTALL APP.
‘Connect Now’ to integrate Xero. You will be taken through to Xero where you will need to allow TradeGecko to access your Xero account.
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.
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.
|
Account |
Account Type |
Code (or other unique identifiers) |
Name of account |
Remarks |
|
Sales Account |
Revenue |
200 |
Sales |
The Xero integration pushes sales data into your main sales account. |
|
Purchases Account |
Current Asset* |
300 |
Purchases |
TradeGecko will push purchase order details into this account. 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. When integrating TradeGecko and Xero, it is important that your Stock on Hand Value (SOH) is accurate from the start. Refer to this article to learn more. |
|
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.
Here's how Purchase Orders work with us:
- Creating a Purchase Order will increase the Purchases account, decrease Accounts Payable.
- Receiving Purchase Order will increase Stock On Hand, decrease Stock Purchases account.
If you have a long purchasing cycle and want to sync Purchase Order to Xero’s Bill only when you receive all the goods from suppliers, please contact us and we will enable the feature for your 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.
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 (in Xero) as they run through the same flow in this integration.
The difference between the Purchases and Stock Purchases is that the integration debits purchased 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.
Next, link your TradeGecko and Xero Tax Types. If the tax type does not exist in Xero, you can create them in Xero and sync them later in the advanced settings section of this install flow.
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 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
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Great instructions, easy to follow, but would be great if the pictures matched up with the instructions as well.
Hey Rob - I'll get one of the team to go through an update this so everything matches - thanks for the feedback,
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?
As Amy
Can you push different product types to different accounts in Xero?
Hey Toby,
Not at this stage - but we're working on expanding the Xero integration at present.
Thanks
Cam
Hey Amy,
We will actually make adjustments from then on - so your existing SOH and COGs values will just be updated.
Thanks
Cam
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.
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.
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
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?
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 ?
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!
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.
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.