Xero Installation Guide

As a business owner or accountant, your easy access to a cloud-based accounting platform like Xero will give you the opportunity to manage your financial operations effectively.

Your business operations can be greatly simplified by Qoblex’s connection with Xero because it can correlate your inventory data with your accounting journal. Through this integration, you can easily manage inventories in Qoblex while ensuring accurate and current financial records in Xero.

To link your Xero account with Qoblex:

  1. Go to your Integrations module.
  2. Look for Xero on the list of integrations.
  3. Click Link to Xero.
  4. Proceed with linking your Xero account’s login information.

Depending on your business and accounting procedures, we strongly advise to review and manage the integration’s settings with your accountant.

Managing your Ledger accounts

The following are what Qoblex automatically syncs to your Xero account. In order to have a smooth experience, we recommend you ensure the following ledger accounts exist in Xero first:

Account type in your S&BAccount type in your XeroDescription
Sales accountsSalesLedger account where sale invoices are sent to.
Payments accountsRevenueLedger account where payment information are synced to.
Purchases accountsCurrent AssetLedger account where purchase orders are synced to.
Stock On Hand accountCurrent AssetLedger account used to track your inventory value.
Manufacturing CostExpensesLedger account used to sync manufacturing cost (labor, services, machinery, etc.)
Cost of Goods Sold accountExpensesLedger account used to track your cost of goods sold.
Inventory Adjustments accountExpensesLedger account used to record irrecoverable stock such as loss, shrinkage and write offs.

For Stock On Hand and Cost of Goods Sold accounts, it is important to remember not to use the default Xero Inventory ledger account. It is reserved to Xero only and cannot be used within Qoblex.

Once your inventory data has synced to Xero, Qoblex provides you control over their status. Whether you want them in a Draft, Pending Approval, or Approved state is up to you.

If you want to create a new ledger account to add to this integration, you can head over to your Chart of accounts in Xero and create a new one. Once done, they will automatically be added to your Xero Integration page.

Sync Rules

You can add rules to each account (except Stock On Hand) by clicking the + Add Sync Rule box, giving you additional control over what and how your inventory data syncs with your Xero account.

We have separate articles that provide more details about setting up rules on the accounts. These will help you establish the proper rule for each one.

Tax Settings

Accurate tax reporting is essential for businesses. By providing the right rate for each line item, businesses ensure their compliance with their local tax authorities. In this integration, you can define how Qoblex and Xero’s tax definitions are mapped.

If your Xero version is US, Canada, or Global, then Qoblex will automatically push your tax definitions within Qoblex to Xero. This applies to both sales and purchases tax rates (also applies to orders coming from online shops such as Shopify).

You only need to define mappings for tax classes that you will actively be using in Qoblex. Xero tax classes that you won’t be using in Qoblex can be left unmapped.

Products Sync

This setting in the integration is optional. You can choose if you want your products’ information to sync within your Xero. The product name, sale price, and purchase price will all be updated by the sync.

To sync your GTIN numbers from your invoices in Shopify to Xero, just choose to Sync from Qoblex to Xero.

Turn off inventory tracking in Xero

While you’re able to sync your products’ information from Qoblex to Xero, we are unable to sync Xero’s inventory tracking. This can cause some errors on your sync if your products are tracked in Xero. You can choose to turn off your products’ sync or un-track your inventory items in Xero.

To turn off your inventory tracking in Xero:

  1. In Xero, navigate to Business > Products and Services.
  2. Select the product and click Edit Item.
  3. Leave the Track inventory item unchecked.
  4. Click Save.

Two-way Payment Sync

You can synchronize your payments between your Qoblex and Xero accounts by enabling two-way payment sync. This feature updates payments in Qoblex when invoices are marked as paid in Xero.

Sync Status

On this page, you can check your orders’ sync status with your Xero. For the orders that failed to sync correctly, you can check the error messages in your Activity module.

By checking the boxes next to each order and clicking on Sync to Xero, you can also manually sync or re-sync your orders.

How does the integration work?

Here are the common activities that are achieved when you sync Qoblex to your Xero account:

Actions in QoblexResults in Xero
Approve a purchase orderA bill is created on your Purchases account.
Receive a purchase orderCreates a journal entry that moves the net amount (without tax) of the purchase order from the Purchases account to your Stock On Hand account.
Void a purchase orderSets the corresponding bill back to Draft.
Authorize a supplier returnA credit note is created against your purchases account in Xero. At the end of the day, a journal entry is created to move the credit note value from the Stock On Hand account to the purchases account.
Invoice a sale orderAn invoice is created against your Sales account in Xero.
Record a payment for a sale orderMarks the corresponding invoice as Paid in Xero and pushes a note to your payments account.
Void a sale orderSets the corresponding bill back to Draft.
Create a sale refundA credit note is created against your sales account in Xero.
Ship (fulfill) a sale orderA journal entry is created to move the order total cost of goods sold from the Stock On Hand account to the Cost of Goods Sold account. Any refunds attached to the closed order will result in a journal entry moving the total cost of the refund from the cost of goods sold to the Stock On Hand account (if the items are restocked) or the Adjustments account if the items is written off.
Create an adjustmentA journal entry is created moving the total adjustment value from the Stock On Hand ledger account to the adjustments ledger account.

Synchronization timing

Every five minutes, Qoblex synchronizes sell and buy orders. Also, this happens whenever a sale or purchase order is modified.

Every day at 8:00 PM GMT, journal entries for Stock On Hand (SOH) and Cost Of Goods Sold (COGS) transactions are synced.

Reconciling Qoblex and Xero

We highly advise that you double-check your Stock On Hand value in Qoblex and make sure it matches your Stock On Hand balance in Xero to guarantee consistency in your inventory valuation between the two.

Once this is done, your total Stock On Hand across all inventory locations in Qoblex should always match the quantity reported in Xero.

You can check the following if the data on both services differ from each other:

  • Verify transactions from Qoblex that are processed and approved in Xero. You can check the Sync Status tab to help you identify items that have not been processed.
  • You can run an Account Transactions report in Xero for your Stock On Hand account. All transactions to this account must be from Qoblex, as it will result in an error if they’re posted from elsewhere.
  • Make adjustments in Xero and monitor the balances going forward.
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