Setting up the Xero integration with Vend

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What is the integration?

The Vend <> Xero integration is a link between your Vend store account and your Xero account.

The integration simplifies your store’s accounting by automatically sending daily and account sales, payment totals and invoices from Vend to your Xero accounting system.

This reduces manual data entry, saving you time and increasing accuracy.

Once set-up you will be able to:

  • Easily reconcile your payment deposits in your bank account against your sales totals and payment totals from Vend.

  • View sales, payments and posted stock orders - these will be reflected in your Balance Sheet and Profit and Loss statement in Xero.

  • Match payments made to suppliers against your stock order (accounts payable) invoices and payments from invoiced customers against their account sales.

  • View your profitability against wages, rent, marketing and other expenses in Xero to understand your true real-time performance.

  • If you’re running a loyalty program using Vend, you’ll also be able to keep track of outstanding loyalty liabilities and the expense to your business.

 

⚡Quick Links:

  1. Setting up Xero for the Integration
  2. Setting up your Xero account Mappings
  3. Xero Tracking Categories
  4. Xero Customer Sync
  5. Setting up custom Sales/Purchase codes for your products
  6. Using the Xero Integration
  7. Sending On Account Sales to Xero

 

Setting up Xero for the Integration

  Note

If you haven't already, we strongly recommend talking to your accountant before turning the integration on.

 

Before configuring the integration settings, you'll need to make sure you've done a few things.

  • Set up tax rates and groups in Vend and Xero.
  • Set up a refund account in Xero.
  • Ensure any Xero accounts you want to process payments to have payments enabled. Bank accounts have this enabled by default. All other accounts, such as clearing accounts, must have this completed manually.
  • Set up a sales invoices default due date in Xero, so customer invoices are not due immediately.

To get started with Vend and Xero, check out this video or follow the steps below:

 

Set up tax rates in Vend and matching tax rates in Xero

1. If you haven't yet set up your Vend tax rates, make sure you do this first. To learn how, check out this article.

2. Next, you need to set up matching tax rates in Xero. You need a matching tax rate for each tax you have in Vend. Taxes in Xero can be found under Accounting -> Tax Rates.

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  • Every tax rate in Vend MUST have a matching rate in Xero. This includes component taxes if you are using group taxes in Vend. When setting up group taxes in Xero, set up the individual tax first, then set up the group tax with the individual rates as components. Never select Compound, as Vend does not support this. Xero has a great article on setting up tax rates in Xero, check it out here.


 Set up a refund account in Xero

Every Vend customer using Xero will need to set up a refund account in Xero.

Typically, when you process a refund, Vend will take the amount refunded off the total amount collected using that payment type that day. For example, if you took $3000 in cash payments, and issued $50 of cash refunds, Vend will send $2950 of cash to Xero as the total.

Sometimes, the amount you need to refund might be MORE than the amount taken that day. For example, you took $560 of payments, but a customer needed an $800 cash refund. Vend cannot deduct $240 from the cash payments account. Instead, Vend will send $0 for the cash payments total for the day, and -$240 to the refunds account so that you can keep track of this.

To set up a refund account in Xero:

  • Open your Chart of Accounts.
  • Set up a current asset account.
  • Name this account Refunds.
  • Tick the Enable payments box.
  • Save your account.


 Enabling payments to your Xero accounts

When you close your register at the end of the day or make an On Account sale, Vend sends payment information automatically to Xero, so that you can reconcile this against the deposits into your bank account. Most retailers prefer that this payment information is sent directly to their bank account feed in Xero. You may also choose to use a payment clearing account.

If you want this payment information sent to a clearing account in Xero (rather than to a bank account), you'll need to make sure payments are enabled for this account.

To enable payments to your account in Xero:

  • Open the Chart of Accounts.
  • Find the account you want to make payments into.
  • Open the account.
  • Check the Enable payments to this account box.
  • Save your account.


 Add a sales invoice due date in Xero

To do this, log in to your Xero account.

Next, navigate to Settings -> Invoice Settings in Xero and choose Default Settings.

Here you will find the Sales Invoices Default Due Date field, fill this out with your chosen due date and click save.


 Set up tracking categories in Xero

Tracking categories allow you to report on transactions by outlet or channel so you can drill down into different areas of your business. You can use this feature to see how each of your locations is performing, or to compare your in-store sales to ecommerce sales. 

To set these up, log in to your Xero account. 

Next, navigate to Accounting -> Advanced -> Tracking categories. 

Click Add tracking category. Assign the category a name, and add any tracking options under that category. 

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Once you're happy with your tracking category and options, click Save

Xero will only allow you to have two active tracking categories at a time.  


 Setting up the Xero integration

Now, you're ready to turn on the Vend-Xero integration.

1. Turning on the integration

  Important

Once a Xero organisation is linked to your Vend account, it cannot be changed. You can remove a Xero organisation from Vend, but you cannot then link a different organisation to the same Vend account. This is because all past account sales, register closures, purchase orders, and customers in Vend will remain linked to the original Xero organisation you set up.

 

Connect to your Xero account

1. On the sidebar, select Setup and click Add-ons.

2. Click the Connect to Vend button for the Xero integration.

3. Click the Enable Xero button.

4. Enter your Xero login information and click Login.

5. Select the Xero organisation to match to your Vend store and allow access.
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6. You'll be taken back to Xero settings page in Vend.

 

  Note

Nice work, next up - Setting up your Xero account mappings

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