Xero Integration



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 synchronized over to Xero. 


WARNING:  The choice to integrate with Xero, QuickBooks Online or to use DEAR Inventory as a standalone service must be made when you create your account. 

  • Changing from QuickBooks Online 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 QuickBooks Online account to QuickBooks Online account) requires a complete data wipe - contact DEAR support to know more.
  • Changing from Dear standalone to a QuickBooks Online or Xero account requires a complete data wipe - contact DEAR support to know more. 


A Video Tutorial is available here: Xero


HIghlights

  1. Steps in Xero

  2. Steps in DEAR Inventory

  3. Integration Settings


Steps in Xero

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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:

  • Accounts Receivable

  • Accounts Payable

  • Inventory

  • Supplies and Materials - COGS

  • Revenue Account 

  • Sales Tax Payable. 

 

To set up Chart of Accounts in Xero:

  1. 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. 

  2. Inventory Account:  

    • Click Add Account

    • Choose Current Asset from the Account Type drop-down 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.

  3. COGs Account

    • Click Add Account, and choose Direct Costs from the Account Type drop-down menu

    • Enter Cost of Goods Sold into the Name field

    • Enter a Code, Description (optional) and check the Tax Rule for the account is correct before clicking Save.

  4. Once you have added all the relevant accounts, you're ready to return to DEAR and complete the signup process.



 





Steps in DEAR Inventory

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To connect DEAR Inventory and Xero:

  1. 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.


  1. Go to Integrations -> Xero

  1. Click Sync Now to be taken to the Xero log in screen. 

  1. Log in to Xero. You will be prompted to let DEAR Inventory access your data and redirected back to DEAR. 

  1. You will be directed to the Xero synchronization screen. Follow the link to Account Mapping and check that all your Xero accounts have been correctly mapped. If you receive a synchronization error, check that all the accounts have been set up correctly in Xero as shown above. 



Now your Accounts are synchronized between DEAR and Xero. You can continue to set up your ProductsSuppliers, and Customers



Consolidated Sales


To Configure the Consolidated sales in DEAR systems, follow the steps below:


Navigate to, 

  1. Integrations  
  2. Xero - Integrations
  3. Scroll down to Consolidated Sales Section 
  4. Toggle from option form "No" to "Yes"




To view currently consolidated invoices and credit notes click on the highlighted link "View consolidate invoices and credit notes" link, once clicked a full list of consolidated documents can be viewed on the Consolidated Sales page.


The Consolidation page consists of the below functionalities: 


  1. Refresh button - On click, the list will reload with the latest updated data.  
  2. Search field - Which will allow a user to perform custom a search by a document number within the list.
  3. Document Grid - It contains the following columns. 
    • Document # in DEAR - Hyperlinked - on click - document page will be rendered in DEAR.
    • Consolidated # in XERO - Hyperlinked - on click - document page will be rendered in  XERO.
    • Status (always have Completed status)
  4. Navigation panel.



NOTE: This link is shown only if "Consolidate Sales on Export" option is turned on.


Consolidate Sales on Export  

This setting turns on a condition for all consolidated sales invoices and credit notes to be exported into XERO. These Consolidated documents are then exported to XERO during a Manual or autosynchronization process.


NOTE:  

  1. The period for consolidation is always one day. Payments, Refunds and Customer Credits should be consolidated too and added.
  2. Consolidated document in DEAR cannot be Voided and Undone. 
    • If or when a user clicks on Void or Undo button an error message will render stating that "This Invoice has been exported to Xero as part of consolidated invoice XXX. Undo/Void will cause a discrepancy with exported data. Please create credit note or invoice to offset the sale you need to undo/void"  

Integration Settings

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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

  • Bills or Purchase Invoices

  • Purchase Credit Notes

  • Sale Quotes/Estimates (Optional send to QuickBooks Online)

  • Sale Invoices

  • Credit Memos and Sale Credit Notes

 

Can be created in both, synced both ways 

  • Bill/Sale/Purchase Payments or Refunds. 

  • Vendors/Suppliers

  • Customers

  • Products/Items  


Within the Xero Integration page, you are able to control whether your integration is enabled or disabled. You can authorize your Xero connection. You can also choose whether Payments are pushed to Xero or pulled from Xero (see more).