Xero Integration App

Merchants can use SHOPLINE’s Xero Integration Application to synchronize and update all online store orders to Xero, an accounting software. With this application, merchants can save effort from synchronizing customer data and tax-related information, as well as reconciling transactions.

In this article, you’ll find:

• Preparations before using the app
• Steps to install the app
• Feature 1 - Creating invoices on Xero
• Feature 2 - Payment reconciliation
• FAQs

 

1. Preparations before using the app

i. Create an account on Xero

Step 1. Head over to Xero’s website (https://www.xero.com/sg/) to create a 30-day free trial account. If you have an existing account, please log into your account.

Step 2. Enter the business information to create a new account. Verify the account and set up a password for your Xero account. 

Note: The country and currency setting must be the same as your shop currency. Mismatched currency will cause synchronization failure. 

 

ii. Setup the respective Payment (Bank) account in Xero (Required)

Step 1. On the setup Dashboard, click Connect your bank account.

Step 2. Select the bank.

Step 3. Connect Xero to your bank account. You can select direct bank feeds (automatic import of bank transactions into Xero) or manually import your bank statements. Click here to learn more about adding a banking account on Xero.

 

iii. Setup the respective Revenue (Invoice) account in Xero (Required)

Step 1. On the setup Dashboard, click Create and customise your first invoice.

Step 2. Click on the three-dot button at the top right of the page ([Sales overview] > [Invoices]) and click Invoice Settings.

Step 3. Click Options and select Edit to customize your Invoice Layout on Xero.

Step 4. After the setup, when orders are created at the online store, invoices will be automatically created on Xero with the invoice number following the SHOPLINE Order ID.

 

iv. Setup tax ID (Optional) 

Step 1. From your menu navigation tab, go to [Accounting] > [Advanced] and click on Financial Settings under "Advanced settings".

Step 2. You can edit the financial year-end, GST tax, time zone, etc. Click here to learn more about setting up your business' financial settings.

To edit the tax rate, click on Tax rates under "Advanced settings". Click on the applicable tax type and edit the tax rates in the pop-up window. 

 

2. Steps to install the app

Step 1. In the SHOPLINE Admin, go to [Apps] > [Apps Store]. Select Xero Integration by Shopline, then click Open App.

Note: Please contact the Online Merchant Success Team if you wish to use this application.

 

Step 2. Click Connect Xero. 

 

Step 3. Log in to your Xero account and allow SHOPLINE to access your account.

 

Step 4. Select or create a Revenue (Invoice) Account for synchronization. You can view the latest synchronization time at the top of the application page.

Note: Your Xero store currency must be the same as Shopline store currency.

Alternatively, you can create another Revenue Account on the application. Expand the drop-down menu and select + Add new account.

 

Step 5. Select the Payment Account for synchronization.

 

Step 6. Map your tax rate with SHOPLINE to Xero. Click Save to complete the setup.

 

3. Feature 1 - Creating invoices on Xero

When an order is created from the online store, it will be captured at Xero Invoices as "Awaiting Payment" or "Paid". To view the list of invoices, go to [Business] > [Invoices].

The invoice number on Xero automatically follows that of Order No. in the SHOPLINE Admin.

Notes: 

• Please ensure the tax settings in the SHOPLINE Admin ([Settings] > [Taxes Settings]) are correct. 
• To edit the tax rate on Xero, click on Tax rates under "Advanced settings". Click on the applicable tax type and edit the tax rates in the pop-up window. 
• The tax synchronization follows the logic/tax rate from Xero instead of that in SHOPLINE.
• If the collected amount exceeds the invoice account on Xero. The invoice account will be captured instead.
• If the collected amount is less than the invoice amount on Xero. There will be an outstanding amount left in the invoice.
• Discounts are captured as a negative amount on Xero.

 

4. Feature 2 - Payment reconciliation

Paid orders in the SHOPLINE Admin will be captured and synchronized to Xero. To view all paid orders, go to [Business] > [Invoice] and select Paid.

If you have a bank feed, payment made to your bank account will automatically be pulled over by Xero. If you do not, you have to upload your bank statements manually. Follow Step 3 to set up the bank statement.

 

To view the transactions for reconciliation, you can click Reconcile (number) items on the Dashboard. Select the Account transactions tab to view. You can match the Payment Ref on Xero with the end of the order link from the SHOPLINE Admin. 

 

5. FAQs

Q1: My store delivers products to various tax regions (e.g. Singapore and Malaysia). Can the SHOPLINE Xero Integration Application help me with different taxation calculations?

A1: No. The application currently supports only 1 type of tax for product items and shipping. For example, merchants will not be able to set 7% for products to Singapore and 6% for products to Malaysia.

 

Q2: Can Xero Integration Application update the order payment status on Xero that has been changed from "Paid" to "Unpaid"?

A2: No, the application can currently update the first payment status change from "Unpaid" to "Paid". Please log into your Xero account and handle it manually.