Set up Xero

Set up Xero

Overview

Find out how to install, connect, and configure a Xero integration.

Before you begin, make sure you’ve set up your chart of accounts and tax rates in Xero. You must have the Xero advisor user role  to complete this migration. If you don’t have a Xero account, talk to Xero about signing up.

Install Xero

Installing Xero will enforce two-factor authentication for all users. Before you begin, make sure everyone understands two-factor authentication.

  1. Log in to Cin7 Omni as an administrator.

  2. From the navigation, select App Store.

  3. Select the Accounting tab and then Xero.

  4. Select Request App Installation.

  5. On the dialog, select Confirm 2FA.

  6. Select Install.

Once your request has been approved, you’ll find your Xero integration in the Accounting menu in the navigation.

Connect to Xero

  1. Log in to Cin7 Omni as an administrator.

  2. From the Accounting menu in the navigation, select your Xero integration.

  3. Select Settings.

  4. On the Connect tab, select Connect. You'll be asked to log in to Xero – you must log in with the Xero advisor user role. You may be asked to select your organization and allow your data to be downloaded to Cin7 Omni. Then, you’ll be sent back to Cin7 Omni.

Configure Xero

  1. Log in to Cin7 Omni as an administrator.

  2. From the Accounting menu in the navigation, select your Xero integration.

  3. Select Settings.

  4. Open the Settings tab.

  5. Either select Start Setup Wizard and follow the on-screen instructions, or configure your settings directly and then select Save.

Multicurrency

Set Is Multicurrency to Yes if you’ve turned on multicurrency in Xero.

Merge sales orders

When you sync sales orders to Xero, line items allocated to the same general ledger account are merged if Merge Sales Order Product Line into One Line is set to Yes. The price of the new line item is the sum of the prices of the merged line items.

Update Transactions for Number of Past Months

Use Update Transactions for Number of Past Months to select the number of past months’  transactions you want to be able to sync from your Xero dashboard.

Invoices and credit notes

Set Upload Invoices and Credit Notes As to Draft to have invoices and credit notes synced to Xero as drafts. Set it to Authorized to have them synced to Xero as approved invoices and credit notes awaiting payment.

Supplier invoices and supplier credit notes

Set Upload Supplier Invoices and Supplier Credit Notes As to Draft to have supplier invoices and supplier credit notes synced to Xero as drafts. Set it to Authorized to have them synced to Xero as approved bills and credit notes awaiting payment.

Inventory method

If you use the perpetual inventory method, set Inventory Method to Perpetual. And if you use the periodic inventory method, set Inventory Method to Periodic.

Find out more about the perpetual and periodic methods.

Accounts: defaults, landed costs, payments

Use Default Accounts to choose accounts from your chart of accounts where your assets, your revenue, and your expenses get allocated:

Sales, Surcharge, and Sales of freight are for revenue from the sale of good and services, surchages, and freight. Set these to income accounts. COGS is for the cost paid for goods sold, Purchase non-stock the cost paid for non-inventory purchases, and Adjustments the value of stock adjustments. Set these to expense accounts.

Stock on hand is for the value of goods in your inventory. Set this to a current asset account – but don’t choose the default current asset account that Xero creates in your chart of accounts. You must create a new current asset account in Xero  and choose that instead.

You can override your default revenue accounts for different products, customers, and branches by setting up alternative general ledger (GL) accounts.

Use Landed Cost Accounts to choose expense accounts to credit for additional (landing) costs. These additional costs are debited to your current asset account for inventory (Stock on hand,above). Select Add Landed Cost Row to add a new category of additional costs. Your additional cost categories are available on purchase orders (under Landed Costs).

Use Payments Accounts to choose a clearing account to debit for payments received via the Omni payment portal.

Store credits

Store credits are a liability on your general ledger.

Select Retail and use Store Credits to choose the liability and revenue accounts where point-of-sale (POS) store credits get allocated. Find out more about issuing and redeeming store credits  and syncing store credits to Xero.

Deposits

Sales deposits are a liability on your general ledger. Purchase deposits are a current asset.

Select Manage Deposits to choose the liability and current asset accounts where sales deposits and purchase deposits are allocated. Find out more about creating deposits and syncing deposits to Xero.

Ecommerce taxes (US only)

Taxes collected on ecommerce transactions are liabilities.

Select Upload Ecommerce Taxes into Liability Account (US Only) to choose liability accounts where taxes from each ecommerce integration are allocated. Find out more about ecommerce taxes.

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