Xero
Introduction
The Xero integration provides a way to sync your sales and inventory transactions to your Xero account. It makes one sales invoice for each branch in each day. Each invoice will have associated payments based on your payment methods. For inventory, a bill or a journal entry is created depending on the inventory transaction type. This guide helps you setup and run the integration with Xero.
Setup in Xero Account
The integration requires several entities to be created in your Xero account. Each of these entities is described next.
Tracking Category and Options
Tracking categories is Xero way to separate entries per branch. You should create a tracking category e.g 'Branches' and create an option for each branch and warehouse. Later you can filter reports by tracking category options. The way to create tracking categories is described here.
Accounts
The integration requires you to setup a number of accounts to correctly map sales to your chart of accounts. The integration accounts are divided into three categories: Items Accounts, Payments Accounts and Inventory Accounts.
Item Accounts
Each invoice has 9 items described in the Items section. Each item should be mapped to an account.
Payment Accounts
You should create one account for each payment method defined in the dashboard. The payment accounts should either be a Bank Account or a normal account that has Enable payments to this account selected. The process to select this option is described here.
Inventory Accounts
Syncing inventory requires five accounts:
Inventory: Stores the cost of all inventory items.
Cost of goods sold: Stores the cost of consumed inventory items.
Inventory adjustment: Stores the cost of lost inventory items.
Pending transfers: Stores the cost of inventory items that are pending receiving.
Tax account: Stores the taxes paid in purchasing transactions.
These accounts are used for bills and journal entries as described in Inventory Entries section. None of these accounts should have account type Inventory because this type is used internally by Xero. You can add accounts by following the steps described here.
Items
The integration sends an invoice with the following items:
Taxable Sales: sum of taxable products' prices.
Non Taxable Sales: sum of non taxable products' prices.
Taxable Discounts: sum of discount amounts given on taxable products.
Non Taxable Discounts: sum of discount amounts given on non taxable products.
Delivery Price: sum of delivery prices.
Service Charge: sum of service charges.
Tips: sum of tips.
Rounding: sum of rounding amounts.
Taxes: sum of collected taxes.
Each of these items should be defined as an inventory item in your Xero account. The item must have I sell this item selected and Sales Account set to one of your accounts. The process is described here. Note that I track this item should not be selected.
Default Customer
It is a requirement of Xero that each invoice must have an assigned contact. You should create a default contact to be assigned in the invoices generated by the integration. You can add contacts by following the method described here.
Suppliers
Suppliers are contacts used for bills in Xero. You should create one supplier in Xero for each supplier in foodics. These suppliers are used when mapping purchasing transactions to bills. The process of creating suppliers is described here.
Default Supplier
An extra default supplier is needed for others in transactions. This default supplier will be used in bills generated from others in inventory transactions
Setup in Foodics Account
After you complete the setup in your Xero Account, go to foodics dashboard and login with your account. Then navigate to Settings -> Addons -> Xero and click Enable or Manage and authorize with your Xero account. Then navigate to the settings sections: Items, Payment Methods, Tracking Category, Default Contacts, Suppliers and Inventory Accounts. Each section displays a subset of the required mappings. When you click on a textfield to map a given item, the dashboard lists the relative items from your Xero account. Select the appropriate item for each displayed textfield then click Save.
Running The Integration
At your preferred time and after branches complete operations of the day, login to foodics dashboard and navigate to Settings -> Addons -> Xero and click Manage. Then select Synchronization and choose the date you want to create invoices for. After that, select Sales Sync or Inventory Sync and choose the date you want to send to Xero. Then for each branch or warehouse, click Upload to Xero button. An invoice, bills or a journal entries will be created in Xero.
Journal entries are sent with Draft status. They will not reflect in your accounts until you mark them as Posted. You can access the list of manual journal entries in Journal Report.
Inventory Entries
The integration creates a bill for each purchasing transaction made in foodics. The bill will contain the supplier in Xero that is mapped to the supplier in foodics. Others In transactions are grouped and mapped to one bill in Xero with the default supplier.
Other transactions are mapped as journal entries. They differ in which account to credit and debit. The details are listed below:
Stocktaking:
If variance is positive:
Credit: Stock adjustment account.
Debit: Inventory account.
if variance is negative:
Credit: Inventory account.
Debit: Stock adjustment account.
Consumption:
Credit: Inventory account.
Debit: Cost of goods sold account.
Transfer Out:
Credit: Inventory account.
Debit: Pending transfer account.
Transfer In:
Credit: Pending transfer account.
Tracking option: sender branch.
Amount: all sent cost.
Debit: Inventory account.
Tracking Option: receiver branch.
Amount: received cost.
Debit: Inventory adjustment account.
Tracking Option: receiver branch.
Amount: variance (lost) cost.
Others out, waste, expiry and damage:
Credit: Inventory account
Debit: Inventory adjustment account
Return:
Credit: Cost of goods sold account
Debit: Inventory account
Notes
Xero allows for 30-minute window. If you face a
Token Expirederror, click re-authorize to allow another 30-minute window.The integration is suitable for small businesses.
Ensure all cashiers end day before performing uploading to Xero.
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