Once you have setup the integration between your Vend store and your Xero account, you'll need to make some changes to your daily processes.
- On Account sales
- Taking payments
- End of day processes
- Stock management
- Troubleshooting the integration
Every time you make an On Account sale in Vend, an accounts receivable invoice will be automatically created and sent to Xero. The invoice will include:
- An itemised sale - list of all products (exclusive of tax), total tax amount(s), total sale amount.
- Any payments made against the sale.
- Customer details - If this customer is not already in Xero, Vend will create a customer record in Xero.
The invoice number on the accounts receivable invoice in Xero will match the Vend receipt/invoice number for the On Account sale. If there is a duplicate receipt number already in Xero, an incremental -1 suffix will be added to the invoice number in Xero only. Remember, you cannot record payments in Xero on an un-approved invoice. As result of this, we recommend you configure your settings to send all invoices to Xero as approved.
For more information on sending On Account sales to Xero, check out this article.
Once the accounts receivable invoice has been created in Vend, there are two ways you can take payment:
1. Taking payment in Xero
If you receive a bank deposit or any other online payment from a customer, you can allocate this payment against the accounts receivable invoice in Xero.
First, find the payment in your bank feed, and use the reconciliation feature to match it to the accounts receivable invoice for the 'On Account' sale. Sometimes you may receive a payment that applies to multiple invoices, for example, if the customer has multiple open 'On Account' sales in Vend and pays them all at once. In this case, you'll need to make sure you match the payment to all the relevant sales. For more information on how to do this in Xero, click here.
Payments applied to 'On Account' invoices in Xero will automatically flow through back to the invoice on Vend and record the payment.
It's important to update your Vend sales whenever payment is received in Xero. Otherwise, your store staff might accidentally record a payment against a sale in Vend that is already paid off in Xero. This is also important so that your outstanding customer balances are up to date in both Vend and Xero.
2. Taking payment in Vend
You should not add any more products to an 'On Account' sale in Vend if the invoice has already been posted to Xero. Adding extra products in Vend does not update the accounts receivable invoice in Xero.
Your customers may wish to pay off their account balance while they are in store.
If your customer has a total outstanding balance across more than one 'On Account' sale, they can pay any amount towards their total balance owing. To pay off multiple 'On Account' sales against a single customer in a single transaction in Vend, click here.
To take payment against a single 'On Account' sale:
- First, find the 'On Account' sale in your 'Sales History' in Register, or by searching for the customer in Vend's customer homepage.
Next, open the sale by clicking the arrow icon. This will bring you to the current sale screen.
Finally, click 'Pay' and record the payment amount. If the customer is only making a partial payment, select 'On Account' again to put the remaining value of the sale back onto Account. Vend will automatically update Xero with the payment.
Voiding/Cancelling/Returning a partially completed On Account sale
Sometimes, you may need to cancel an on account sale if, for example, your customer has returned the product or if the sale was made in error. The best way to do this is to put through a dummy payment on the account sale in Vend to close the sale. Then, create a new sale, add all the items from the original sale with negative quantities. Pay the customer out via refund - you'll only need to return any amounts they paid. The remaining amount will balance the 'dummy' payment you made.
You don't need to change anything in Xero (the dummy payment will close the invoice, and the refund amount, including in the day's register closure, will balance this).
Once your sale has been created in Xero, you'll need to reconcile the payments made to them with the deposits in your bank account. If the customer has paid you directly (e.g. credit card payment directly for invoice), you'll be able to locate the payment in your Xero bank feed and match it to the invoice.
However, for many customers, the payment will be included in a larger bank deposit, such as the end of day takings deposit. This means you'll need to match this payment to the invoice for the account sale, as well as any other applicable transactions (such as the daily register closure). Check out Xero's help article for guidance on this.
It is essential to close all the registers in your store every day. If you have staff, make sure you have a closing process for every register, in every outlet, each day. This should include counting the cash takings and removing them from the cash drawer, summing up your card/EFTPOS machine, if required, and closing the register(s) in Vend.
What information is sent to Xero when you close your register?
When you close a register in Vend, an accounts receivable invoice will be created in Xero. The invoice will include:
Products sold: Depending on the setting you chose, this will either be summed per product or per account code, or listed per sale. The amounts will exclude tax.
If you have loyalty enabled:
- Loyalty liability incurred and expense added when loyalty earned.
- Loyalty liability reduced when redeemed (along with sale of product recorded).
A note of the amount of payments taken for On Account sales that day, (the payments will be shown on the account sale invoice instead), if the day's takings included any On Account sales.
Layaway/Lay-by sales: These will be reported in parts, as they are paid off, as the Xero invoice for the register closure must have a $0.00 balance. Each time the customer makes a payment, the payment amount, along with a corresponding amount of the layby products, will be recorded in that day's register closures. This means you might see some strange quantities in Xero for these items. It is important to remember that the register closure report in Vend will still show the full value of the sale.
Register closures will not automatically be sent to Xero, if you have store staff set up as cashiers. You will need to log in and confirm that you are happy to send the register closure to Xero by clicking the red Xero logo next to the closure in the Register Closure history report.
Cost-of-goods-sold ("COGS"): If you have Vend's cost-of-goods-sold enabled the cost associated with the products sold will be added up and sent as part of the register closure. These will be posted to Xero as a COGS bill invoice and will also appear as a sum on your register closure sales invoice.
To learn more about this or about COGS in general, follow the link here.
COGS calculated on open 'On Account' sales will also post to Xero at the time the sale is made, irrespective of whether payment has been taken.
What happens if I deposit my payments weekly (into my bank account) or for more than one register at once?
For many customers, the register closure payments will be included in a larger bank deposit, such as a weekly deposit or settlement from credit card processors. This means you'll need to match this payment to the invoice for all the applicable register closures. Check out Xero's help article for help with this.
Accounting for stock/inventory costs is important to help you understand whether your retail business is making money. Your accountant will need to understand how much your stock costs you, and how much your inventory is worth.
It is essential that you use Vend's stock order feature when adding new product inventory. If you do not, your product costs will be incorrect.
When you're processing your stock orders through Vend, you'll need to send these to Xero to create an accounts payable invoice in Xero. Unlike the rest of the integration, this does not happen automatically.
To post a received stock order to Xero, follow the steps below:
1. Navigate to the Stock Control page in Vend
2. Filter the stock order page by Received orders
3. Click the Send to Xero button under the reference to create the invoice in Xero
4. You can now click the blue View on Xero button on the main stock page to load the invoice in Xero,
Or click the View on Xero button on the stock order page for the specific order to see this stock order in Xero.
When you pay your invoice, you can match the outgoing payment transaction in your bank feed to the accounts payable invoice in Xero.
The information sent to Xero is:
- Date the order is fully received in Xero
- Supplier name
- Products ordered
- Quantity ordered
- Order name and Supplier Invoice Number is sent to the reference field in Xero
- Supply cost (exclusive of tax). Tax is applied by Xero according to your settings.
- The due date is NOT sent to Xero, as this is the day you expect to RECEIVE the order, not the date payment is due.
Remember, if you want certain products to be recorded in different expense accounts, you can customise this on the product page.
Shipping costs are not automatically included. You might like to create a 'Shipping costs' product with no tax, no price and no inventory tracking in Vend, and add it to the order when it is received to track stock costs for each order.
Stock Adjustments - breakage, wastage, shrinkage and inventory counts
It's also really important to track adjustments to your stock levels, whether they are damaged/broken stock, wastage (like food at the end of the day), or shrinkage (stolen items). Sometimes, you'll know about the loss when it happens (damaged stock, wastage), and other times, you might not realise until you do an inventory count.
All of these different types of adjustments can be recorded in Vend using the Inventory Count feature. Check out this article to learn how to complete an adjustment or this on completing an inventory count.
Stock adjustments, including inventory counts, are not able to be directly sent to Xero. You'll need to complete a manual journal in Xero to account for these.
I am seeing a red Xero logo? How do I fix it?
1. First, click on the red Xero logo.
2. Did the transaction send (logo go blue)?
- Yes: You're all good! Sometimes transactions take longer to send and clicking it forces Vend to retry sending it.
- No: Go to next step.
3. Did you receive an error message?
- No: Go to the next step.
- Yes: Click here to learn how to fix the most common error messages.
4. I didn't receive a Xero error message?
Sometimes, you'll get a register closure or account sale that does not give you an error message when you attempt to send it.
There are two common causes of this:
You have set up invoices to be sent as awaiting approval or draft, and haven't approved the invoice in Xero before taking payment. You need to approve the invoice in Xero, and either remove and reapply the payment. You can also contact our Support team to arrange for the payment to be sent. We strongly recommend setting all invoices to send as approved.
You have set payments to send to an account other than your bank account, and haven't enabled payments to that account in Xero. Enable payments in the Xero Chart of Accounts, and then click the Xero logo in Vend to resend the transaction.
For more information on Using Xero on Vend, check our articles here.