What is Citrus-Lime's Xero Integration?

The Xero integration transfers batch and Purchase Order data from Cloud POS into your Xero account. There is no separate user interface you need to work with — Citrus-Lime set up the integration and the data transfer takes place automatically.

We have been given guidelines by 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. 

In terms of day to day operations, transferring your sales data to Xero requires you to close the batch on each register on each day of trading, by running a Z report and entering your closing amounts. The integration will not transfer transactional information from an open batch, so closing the batch is important in order to ensure that each day's sales data is carried over into Xero in daily blocks. (This will help make sense when looking at data in accounting terms.) If you do not currently close the batch on each register on a daily basis, you will need to build this routine into your business processes.

With regards to Purchase Orders, only ‘Closed’ Purchase Orders (i.e. received stock) will be passed across to Xero.

How does the integration work?

When we set up the Xero integration for you, we will set up a recurring data transfer at a specific time each day. This is usually late at night or in the early hours of the morning. This ensures that you will have closed the batch(es) on your till(s)/register(s) before the data transfer takes place.

At that time, the integration will look for newly closed Cloud POS batches and newly received Purchase Orders and post them through to your Xero account.

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. The Tender Types are mapped to a control account called ‘Cloud POS Till Takings’, with the exceptions being Gift Vouchers and Customer Account activity, which are mapped to their own control 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 – each tax code is a line item on the sales invoice. 

This information will arrive in Xero in the Business > Invoices section. 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 it 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 record instead.

Purchase Order information will arrive in Xero in the Business > Purchase Orders > Draft section, for you to submit for approval. As of 7th November 2024, this also includes any Shipping charges and/or 'Other Fees' entered into your Purchase Order header. These will show as lines within the Purchase Order in Xero.

(Please note that Xero may round your Shipping Tax figure differently to Cloud POS. For example, for 5% tax on 10.99 of shipping, Cloud POS would calculate 10.99 x 0.05 = 0.5495, and then round this to 0.54. Xero might round it to 0.55 instead.)

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. If you would like to show your inventory position within Xero, this will need to be done manually. Remember that you have full stock tracking and reporting available in the Cloud POS Back Office and Cloud Reports respectively.

I have more than one store. 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.