Once DEAR Inventory and Xero are connected, DEAR Inventory will become the central point of all inventory management within your business. This means that all inventory-related purchases, sales, and manufacturing will be performed in DEAR Inventory and then synchronised over to Xero.
WARNING: The choice to integrate with Xero, QBO or to use DEAR Inventory as a standalone service must be made when you create your account.
- Changing from QBO to Xero as your accounting system or vice versa requires a completely different DEAR Inventory Account
- Changing from one Xero account to another Xero account (or QBO account to QBO account) requires a complete data wipe - contact DEAR support to know more.
- Changing from Dear standalone to a QBO or Xero account requires a complete data wipe - contact DEAR support to know more.
A Video Tutorial is available here: Xero
Steps in Xero
Before commencing the integration process, a number of accounts will have to be created in Xero. You will need to make sure you have at least the following accounts:
Supplies and Materials - COGS
Sales Tax Payable.
To set up Chart of Accounts in Xero:
In Xero, navigate to Settings -> Chart of Accounts. The Chart of Accounts will be loaded based on the industry that you specified when initially setting up Xero. NOTE: You will need to add an Inventory and a COGS account to the ones already loaded into Xero are not compatible with DEAR Inventory.
Click Add Account
Choose Current Asset from the Account Type dropdown menu
Enter Inventory into the Name field
Enter a Code, Description (optional) and check the Tax Rule for the account is correct before clicking Save.
Click Add Account, and choose Direct Costs from the Account Type dropdown menu
Enter Cost of Goods Sold into the Name field
Enter a Code, Description (optional) and and check the Tax Rule for the account is correct before clicking Save.
Once you have added all the relevant accounts, you're ready to return to DEAR and complete the signup process.
Steps in DEAR Inventory
To connect DEAR Inventory and Xero:
- When creating your DEAR Inventory account or free trial account, select Xero as your accounting system. Follow the link in the activation email sent to you. You will be redirected back to DEAR Inventory and asked to choose a password.
- Go to Integrations -> Xero
- Click Sync Now to be taken to the Xero log in screen.
- Log in to Xero. You will be prompted to let DEAR Inventory access your data and redirected back to DEAR.
- You will be directed to the Xero synchronisation screen. Follow the link to Account Mapping and check that all your Xero accounts have been correctly mapped. If you receive a synchronisation error, check that all the accounts have been set up correctly in Xero as shown above.
Once your DEAR Inventory account is set up, you'll be able to locate the Xero Integration page by navigating to the Integration module and selecting Xero.
The Xero Integration page will contain the details of the integration in the page header and it explains the flow of data between DEAR Inventory and Xero.
Created in Xero, sent to DEAR
Chart of Accounts, Tax Rules and Payment Terms
Created in DEAR, sent to Xero
Purchase Orders (Optional send to Xero)
Bills or Purchase Invoices
Purchase Credit Notes
Sale Quotes/Estimates (Optional send to QBO)
Credit Memos and Sale Credit Notes
Can be created in both, synced both ways
Bill/Sale/Purchase Payments or Refunds.
Within the Xero Integration page, you are able to control whether your integration is enabled or disabled. You can authorise your Xero connection. You can also choose whether to export purchase orders and sale quotes to Xero and whether Payments are pushed to Xero or pulled from Xero (see more).