Setting up the Xero integration with Retail POS (X-Series)

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The Retail POS-Xero integration is a link between your Retail POS account and your Xero account; simplifying your accounting by automatically sending daily and account sales, payment totals, and invoices from Retail POS 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 Retail POS.

  • 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 Retail POS, you’ll also be able to keep track of outstanding loyalty liabilities and the expense to your business.

Connect Retail POS to your Xero account

1. Navigate to Setup > Apps.

2. In the Track financials section, click Connect to Lightspeed Retail under Xero Xero-Connect-To-Lightspeed.png

3. Click Enable Xero.

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4. Enter your Xero login information and click Login.

5. Select the Xero organization to match your Retail POS store and click Allow access.

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Once connected, you'll be taken back to Xero settings page in Retail POS to map your Xero accounts to Retail POS.

Setting up your Xero Account Mappings

  Important

Lightspeed is unable to offer advice on what accounts to map to as this will vary between businesses. We recommend working with an accountant when setting up your Xero mappings.

For new accounts created in Xero, you will have to click Sync from Xero in the Account section of the Xero settings page in Retail POS before they are available in Retail POS to map.

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If you have not created accounts in Xero, you can do this in Retail POS by selecting Add a new account from the mapping drop-down menus. These accounts will be automatically created in Xero

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Register Closure Settings

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Send register closures to Xero as: Select how you would like Retail POS to send Xero the accounts receivable invoice from each register closure. You can choose to:

    • Summary by Account Code: This will send sales data totals for each sales account code.
    • Summary by Product: This will send sales data totals for each product.
    • Individual Products sold: This will send details of each sale as a separate invoice line. This means products may appear more than once.

Choosing how much detail you'd like to send is a matter of preference. We recommend checking with your Financial Advisor how much information they would like sent to Xero.

Sales Tax

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If you have not set up your taxes yet, you can create these directly in Retail POS by selecting Add a new sales tax from the mapping drop-down menus. These accounts will be automatically created in Xero

For tax rates that do exist in Xero, your Retail POS account needs to be matched to the corresponding tax rate you have set up in Xero. From the Xero settings page in Retail POS, you will be able to select your Xero tax rates from the tax drop-downs.

Retail POS gives you the option to set up products with or without tax. You need to fill in the No Tax field by selecting the Xero account you want no tax on a product sale to be sent to.

Xero has a great article on setting up tax rates in Xero, refer to it here.

  Tip

You will only see Xero tax types that have the same rate as a Retail POS tax type.

Accounts for products

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Default sales account

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
  • Revenue

If you have not created a default sales account in Xero, you can do this in Retail POS by selecting Add a new Account from the mapping drop-down menus. This account will be automatically created in Xero.

On account sales

You can specify the date when on account invoices are due in Xero. To do this you'll need to have added a default due date in Xero.

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Underneath Invoice payment date, specify the date you want your customer invoices to be due. You can pick from either None - Due immediately or set a custom timeframe in Xero.

Expenses

Send Invoice as

Select what status you would like Retail POS to use when sending invoices for stock orders to Xero.

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You can choose:

  • Approved
  • Awaiting approval
  • Draft

How do you want to record your inventory purchases?

  • Asset: Keep a real-time view of your inventory asset with purchases and sales updating the asset account. 
    • On-hand inventory: select an asset account that will map your current assets
  • Expense: Have a running total of your inventory purchases.
    • Purchases: select an expense account for stock orders

If you have not created accounts in Xero, you can do this in Retail POS by selecting Add a new Account from the mapping drop-down menus. These accounts will be automatically created in Xero.

Payment types

Select the Default payment account that all payment types in Retail POS will be sent to in Xero from the drop-down menu.

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You can also choose to map each payment type in Retail POS to an account in Xero. Click on the Map individual payment types toggle to enable individual mapping.

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Once enabled, select the account you wish each payment type to be mapped to in Xero from the drop-down menu next to the payment type.

If you have not created accounts in Xero, you can do this in Retail POS by selecting Add a new Account from the mapping drop-down menus. These accounts will be automatically created in Xero.

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Important

Retail POS will only show accounts that have payments enabled in Xero.

Default payment account

Retail POS 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.

As with taxes, if you haven't set up any Xero accounts to map to in the Xero settings page, you can create them from the Xero settings page.

For account sales, Retail POS will send each individual payment to the account you specify. For all other sales, Retail POS 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.

Refunds

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Typically, these will be deducted from your payment totals for the day. However, if the total refunds issued to customers for a payment type are 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

If you have not created accounts in Xero, you can do this in Retail POS by selecting Add a new Account from the mapping drop-down menus. These accounts will be automatically created in Xero.

Rounding errors

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

Select a Xero account to map these to from the Rounding and Cash rounding expense drop-downs.

Which accounts in Xero can this be mapped to?

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

If you have not created accounts in Xero, you can do this in Retail POS by selecting Add a new Account from the mapping drop-down menus. These accounts will be automatically created in Xero.

Till payment discrepancies

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We recommend you use Retail POS cash management to accurately track all cash movements in Retail POS and record discrepancies in Xero.

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

Select a Xero account to map these to from the Till payment discrepancies drop-down.

Which accounts in Xero can this be mapped to?

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

If you have not created accounts in Xero, you can do this in Retail POS by selecting Add a new Account from the mapping drop-down menus. These accounts will be automatically created in Xero.

Discounts

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

Select a Xero account to map these to from the Discounts drop-down.

Which accounts in Xero can this be mapped to?

  • Revenue
  • Expenses

If you have not created accounts in Xero, you can do this in Retail POS by selecting Add a new Account from the mapping drop-down menus. These accounts will be automatically created in Xero.

Liabilities

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If you have enabled loyalty, store credit, or gift cards, you'll need to select where in Xero to post the expenses and liabilities.

  • Track the liability to your store created by customers earning loyalty, Store Credit, Gift Cards.

  • Track the expense to your store incurred when customers redeem loyalty, Store Credit.

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

Select Liability, Expense, and/or Revenue accounts to map these to from the drop-downs.

Which accounts in Xero can this be mapped to?

  • Liability (for loyalty, store credit, and gift card liability)
  • Expense (for loyalty and store credit expense)
  • Revenue (for gift card expiry revenue)

If you have not created accounts in Xero, you can do this in Retail POS by selecting Add a new Account from the mapping drop-down menus. These accounts will be automatically created in Xero.

Save your settings

Click Save to complete the initial setup. Your Retail POS store is now configured to send data to Xero.

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  Important

For Retail POS merchants that wish to remove an existing Xero account to connect to another Xero account, contact Retail Support. To do so, use the Help function within your Retail POS store.

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