Setting up the Xero integration with Vend


Latest update: - Nick Houldsworth

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.

Important: A Vend store can only be linked to a single Xero organisation. You cannot link separate outlets to separate Xero organisations.


Before you begin

Before turning the Vend-Xero integration on, you need to:

  • Consider the impacts of the integration on any store processes, such as gift cards and cash management. If you are using either of these two features, you will need to make sure you set them correctly with Xero. For gift cards, click here. For cash management, check out this article here.
  • Make sure you understand the changes to your in-store processes each day if you're using the integration. This includes stock ordering, account sales, and closing your registers. You can read more about how the integration works below.
  • Be aware that once your Xero organisation is linked to your Vend account, it cannot be changed. For more information on this, get in touch with our support team.

This article includes:


Getting Ready

Important: 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

If you haven't yet set up your Vend tax rates, make sure you do this first. You can read how here.

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 'General Settings' -> 'Tax Rates'.

  • 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 'compounding', 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.

Normally, 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 can't deduct $240 to 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 do this in Xero:

  • Open the Chart of Accounts
  • Find the account you want to make payments to
  • Open the account
  • Check the 'enable payments to this account' box
  • Save your account

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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.

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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. If you have any questions about this, please contact our support team.

Connect to your Xero account

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

2. Click the 'Add 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.

6. You'll be taken back to Xero settings page in Vend.


2. Sales and Purchase Account Settings

Important: We do not recommend that you map any Vend fields to the Xero accounts receivable account. Because accounts receivable is a system account in Xero, it cannot always receive payments and may cause errors in Vend.

Next, you'll need to choose which accounts to send sales, purchase and payment information to. Make sure you've got all the accounts already set up in your Chart of Accounts in Xero and have enabled payments for these accounts.

Note: If you have added any new accounts in Xero you will have to click reload accounts on the Xero settings page in Vend before they are available in vend to map.

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Accounts for Products

What is this?

This is the sales account in Xero which all product sales totals will be sent to by default. Send your product sales totals from register closures and account sales to a specific account in Xero. If you don't want all sales going to the same account, you can set an account for each product on the product page.

Which accounts in Xero can this be mapped to?

  • Sales
  • Current Assets
  • Current Liability

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Inventory (Stock) Orders and Account Sales

What is this?

Send completed stock order totals to Xero where an accounts payable invoice will be raised. You can select which inventory orders you want to send. All customer invoices for 'On Account' sales will be sent to Xero automatically. If you don't want all purchases going to the same account, you can set an account for each product on the product page.

Which accounts in Xero can this be mapped to?

  • Current Asset
  • Direct Cost
  • Expense
  • Overhead

Rounding Errors

What is this?

Keep a record of the small discrepancies that can occur when calculating tax on small transactions. Vend will send these to your selected account when you close the register.

Which accounts in Xero can this be mapped to?

  • Current Asset
  • Current Liability
  • Liability
  • Expense
  • Direct Costs
  • Overhead

Till Payment Discrepancies

What is this?

We recommend you use Vend Cash Management to accurately track all cash movements in Vend and record discrepancies in Xero.

Track the differences between the amount expected when you close your register and the amount you count. Vend will adjust the totals of your payment accounts and the account you pick here accordingly.

Which accounts in Xero can this be mapped to?

  • Current Asset
  • Current Liability
  • Liability
  • Expense
  • Direct Cost
  • Overhead

Refund Account

What is this?

Normally, these will be deducted from your payment totals for the day. However, if the total refunds issued to customers for a payment type is more than the total payments received that day, we'll post the difference to this account.

Which accounts in Xero can this be mapped to?

  • Current Asset

Default Discount Account

What is this?

Record the discounts you give your customers via the discount button or by using price books.

Which accounts in Xero can this be mapped to?

  • Revenue
  • Expenses

Accounts for liability

What is this?

If you're running a Vend loyalty program, you'll need to select where in Xero to post the expenses and liabilities. You can also select a liability account from Xero if you are using Vend gift cards.

  • Loyalty given - Track the liability to your store created by customers earning loyalty.

  • Loyalty redeemed - Track the expense to your store incurred when customers redeem loyalty.

If you are not sure how to set these accounts up in Xero, or which codes to use, please contact your Financial Advisor.

Which accounts in Xero can this be mapped to?

Expense (for loyalty expense) Liability (for loyalty liability)


Managing cost-of-goods-sold (COGS)

Cost-of-goods-sold (or “COGS”) are the direct costs involved in purchasing or making the products you sell.

Your COGS post to Xero and will be recognised as the goods are sold. This means when you sell a product, the cost of the product and the revenue from its sale will be recognised in the same accounting period. Easily calculate your gross profit but better yet, view your profitability against your wages, rent, marketing and other expenses to understand your true real-time position.

To learn more about cost-of-goods-sold in Vend and how to set it up, check out this article here.

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3. Payment Settings

Vend will send your payment totals to Xero for each payment type your store accepts. You need to select where in Xero to send these totals. Many retailers prefer to send their payments directly to their bank account feed so they can use Xero's account reconciliation feature to match them easily.

For account sales, Vend will send each individual payment to the account you specify. For all other sales, Vend will total the amount taken from your register closure and send all payments together.

You can also choose to post these payments to a clearing account. If you choose this option, you'll need to create a clearing account in Xero and ensure that payments to that clearing account are enabled in the Chart of Accounts in Xero. This account will normally be a current asset account. Make sure the account code is six characters or less. Otherwise, your payments will not post. To learn how to do this in Xero, check out this article here.

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4. Tax Settings

Each tax rate in your Vend account needs to be matched to the corresponding tax rate you have set up in Xero. This is done in the Xero settings page in Vend.

Vend gives you the option to setup products with or without tax. You need to fill in the 'No Tax' field by selecting the Xero account you want any tax free product sales to be sent to.


5. General Settings



On Account and Stock Order invoices

You need to select the status Vend will apply to invoices sent to Xero for your On Account sales and stock orders. Select what status you'd like Vend to use when sending invoices for your On Account Sales and Stock Orders to Xero.

You can choose:

  • Approved
  • Awaiting Approval
  • Draft

The settings will apply to both stock orders (accounts payable invoices) and On Account sales (accounts receivable invoices). This setting does not apply for register closures. All register closures are sent as approved.

Note: If you are using On Account sales, we recommend choosing 'Approved'. You are unable to receive a payment in Vend on unapproved invoices.



Setting payment due dates for On Account sales

In Vend, you can specify the date On Account invoices are due in Xero, to do this you'll need to have added a default due date in Xero.

Underneath Invoice due date, specify the date you want your customer invoices to be due. You can pick from either 'none - due immediately' or your chosen default due date in Xero.

Note: All future on account sales will use the due date you specify. You cannot specify custom due dates on an individual sale basis.



Register Closure Detail

Choose how much detail you'd like Vend to send to Xero in the accounts receivable invoice from each register closure.

You can choose:

  • Detail each sale: Send detail of each sale as a separate invoice line. This means products may appear more than once.
  • Send a summary by product: Send sales data totals for each product
  • Send a summary by account code: Send sales data totals for each sales account code

This is a matter of preference - check with your accountant how much information they would like sent to Xero.

Note: If you are planning to enable Vend's cost-of-goods-sold feature, you will need to map a few additional fields in this section. To learn more about this, click here.


6. Save your settings

Click 'Save Settings' to complete the initial set up. Your Vend store is now configured to send data to Xero.


7. Customise your set up further

Once the integration is turned on, you're able to customise some more settings. These include:

  • Setting custom account codes for the sale and purchase of individual products
  • Importing and managing your existing Xero contacts in Vend.



Setting custom account codes for the sale and purchase of individual products

There are several reasons that you may want to set custom account codes for a product. These include:

  • If you have products with different sales tax rates in Vend and want to send them to different accounts in Xero.
  • If you sell both services and goods/products.
  • If you sell stock on consignment and want to track these sales separately in Xero.
  • To track non-standard products like freight charges and import duties.

There are two types of codes you can customise:

  • Sales account code - This references the account in Xero where sales of the product will be recorded.
  • Purchase account code - This references the account in Xero where product purchases from stock orders will be sent.

To override the default account mappings, simply edit the product and enter the account code that you wish this product to be mapped to.

These codes can be imported into Vend using a CSV file. Use the column heading account_code for your sales account (revenue accounts) or account_code_purchases for your purchase account (expense accounts) as shown in the image directly below. Any fields left blank will default to the Xero account you have previously mapped against your sales and purchases fields in Vend.

Screen_Shot_2012-02-23_at_10.18.04_AM.png

Note: If you're setting custom account codes for products in Vend, make sure you've set up the corresponding accounts in Xero. You should also ensure the tax assigned to these Xero accounts match the tax on the products.



Importing and managing your existing Xero contacts in Vend

If you're an existing Xero customer, and you're new to Vend, you'll probably want to import your contacts from Xero. Vend allows you to import existing customers or suppliers into your Vend account using the 'Import from Xero' option.

Important: If you've already added the same customers or suppliers directly into your Vend account, importing contacts from Xero will create duplicate records. We do not recommend importing in this instance.

1. Importing Xero customers into Vend:

  • In Vend, open the 'Customers' page.

  • Click the 'Import' button, and choose the 'Import from Xero' option.

  • Any contact in Xero labelled as either a 'customer' or a 'general contact' will now be imported. This may take some time if you have a lot of customers in Xero.

Your customers will now be linked to Xero.

Important: If you have linked your customers between Vend and Xero and you edit one of these customers on Xero's end, the changes will not apply in Vend. Next time the customer is edited in Vend, or used in an on-account sale, these changes will be overwritten.

Editing your Xero customers in Vend:

If you are maintaining your customer details in Vend, either in Register or via the ‘Customers’ page, it is important to ensure that Vend is the master. This means that any changes or edits made to customers should be done in Vend, not in Xero. When you apply any changes to a customer in Vend, these changes will be pushed across to Xero.

All edits you make to customers in Vend will update in Xero, excluding any changes made to the phone number field. To learn more on how to import and edit your Xero customers in Vend, check out this link here.

Important: If you have synced your customers between Vend and Xero and you edit any customer details in Xero, the changes will not apply in Vend. Next time this customer is edited in Vend, or used in an on-account sale, the changes you made in Xero will be overwritten.



2. Importing Xero suppliers into Vend:

Important: If you've already added your Xero suppliers directly into your Vend account, importing these contacts from Xero will create duplicate records. We do not recommend importing in this instance.

To pull across your suppliers from Xero into Vend click on the 'Product' tab in the side menu and navigate to the ‘Suppliers’ page. Once here, click the 'Import from Xero' button to the top right of the screen.

Editing your Xero suppliers in Vend:

Currently, only customer details edited and managed in Vend will automatically update in Xero. Any updates you make to you supplier details in Vend will not update in Xero.

Any contacts in Xero who are set as suppliers will now be imported to Vend. This may take some time if you have a lot of suppliers in Xero.


FAQ about customers and suppliers

Q1. I have no customers in Xero, but I have customers in Vend that I want to have in Xero

A1. The first time you complete an On Account sale for a customer, Vend will create the customer in Xero for you. You don't need to create the customer manually in Xero as this may cause duplicate customer records.

Q2. I have no suppliers in Xero, but I have suppliers in Vend that I want to have in Xero

A2. Each supplier will be created in Xero the first time you receive a stock order for them in Vend. Sending stock orders to Xero is optional, so if you want to keep these separate, that's not a problem.


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