Xero Integration // FAQs
Frequently Asked Questions regarding the Xero integration
What is Citrus-Lime's Xero Integration?
Fundamentally, we have been given guidelines by the HMRC for the requirements of Making Tax Digital, and have made sure that the integration meets those requirements. Making Tax Digital means that qualifying retailers have to keep records digitally, and also have to submit their VAT return using compatible accounts software, such as Xero.
The integration works by transferring batch and purchase order data from Cloud POS and into Xero. There is no separate user interface you need to work with; Citrus-Lime set up the integration and this works in the background. In terms of day to day operations, there are no additional tasks you need to complete.
Your Xero account MUST be at least a standard subscription - trial or starter accounts cannot be integrated.
You MUST have a Cloud POS Pro Plus licence to be able to use the Xero integration. If you are unsure of your licence type, please contact the Success Team.
How does the integration work?
In terms of transaction data, the information that is transferred to Xero is taken from the Z report information in Cloud POS, so can only be transferred once you close the batch on the register on Cloud POS.
This being the case, it is crucial that you close the batch (run a Z report) on each register each day, to ensure that up-to-date information can be sent across to Xero.
Purchase Order data can be transferred to Xero once the Purchase Order is marked as closed in Cloud POS.
What data is transferred from Cloud POS to Xero?
For transactions, we set up mappings in the integration so that data is moved to the appropriate control accounts within Xero. Each tender type is linked to a till takings account, with the exceptions being vouchers, and customer account activity, which are mapped to their own accounts.
Sales are created as invoices and the tender types used are treated as payments against that invoice. Each closed sales batch in Cloud POS is a separate sales invoice in Xero – the total is split by Tax Code, so each code is a line item on the sales invoice. Payments from that sales batch are matched on the invoice, separated by Tender Type.
This information will arrive in Xero in the Business > Invoices. An invoice will be marked as 'Paid' unless there are still payments to be made against it, or there is a corresponding Credit Note, in which cases the invoice will be marked as 'Awaiting Payment' and will need further action to change them into the 'Paid' state.
With Purchase Orders, we match your suppliers in Cloud POS to those suppliers set up in Xero. Where this isn't possible (for example, if the suppliers do not exist in Xero) we will create a Default Cloud POS Supplier and assign any Purchase Orders for unmapped suppliers to that supplier.
Purchase Order information will arrive in Xero in the Business > Purchase Orders > Draft section, for you to submit for approval.
This graphic gives an illustration of the data flow between Cloud POS and Xero:
How does the integration deal with deposits?
When your customer pays a deposit you will take the payment by cash or credit card, for example. A deposit will show as a credit note in Xero on the day it was taken, which can then be allocated against the appropriate invoice. You'll see this in revenue and it will be highlighted that it is a liability, and will show in a profit and loss report. When the deposit is redeemed against the purchase, it will show in the balance sheet.
How does the integration deal with Finance or Cycle To Work commission?
The integration doesn't deal specifically with commission that you pay to a provider, as this information isn't handled within Cloud POS; it is an accounting matter. However, transactions in POS which are tendered as Finance or Cycle To Work schemes will still report into Xero, into the till takings control account.
You can have separate accounts in your charted accounts for different finance companies. For example, if you were to use Hitachi and V12 for finance and you pay a different commission rate to each, you can create a separate account within your charted accounts for each finance option, and can then check the commission against the invoice.
Does the integration deal with stock?
The integration does not track stock. Closed / received Purchase Orders are transferred to Xero line by line, but stock is not tracked. Retailers will need to enter their inventory position (Stock Value Report) into Xero. This will need to be done manually – ideally monthly.
I have more than one store in my Cloud POS group. How does Xero deal with this?
Details will arrive in your Xero account with the corresponding batch or Purchase Order number from Cloud POS, but they do not state the corresponding store from which they originated. This will need to be manually reconciled.
My accountant manages my Xero account. Can I still use the integration?
Providing we can gain access to your Xero account, this shouldn't present any problems. Issues can arise if your bookkeeper or accountant manages your individual Xero account within a master account that may also contain other businesses' data, and therefore may be unable to provide account login details. Speak with Citrus-Lime if this is the case, as we may be able to find a solution.
Do I need to let Citrus-Lime know about any changes I make in Cloud POS or Xero?
You should only need to let us know if you create new Tender Types or Suppliers within your Cloud POS account. This will allow us to create the appropriate mappings in the Xero integration, so that we can send data to the right places in your Xero account.