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Setup Default Accounts and Taxes
For the integration to work, you'll need to specify default accounts and tax settings in Xero for the app to post your Shopify orders to.
| Revenue Account | This is the default account all orders would be posted to. You can further configure this for specific products and product types in the "Setup - Products" screen. |
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| Shipping Account | This is the default account where any shipping lines or revenue from shipping charges would be posted to. |
| Refunds Account | This is option to track Refunds separately or just use the same account that was used in the original order. If you'd like to track Refunds separately, specify the Xero account here. |
| Gift Cards Liability Account | This is the default account where any gift card revenue would be posted to. Note: Ensure that 'Enable payments to this account' for this account is checked in Xero. |
| Payment Bank Account | This is the default bank account where all payouts would go into. You can further configure this for specific payment gateways (eg. Shopify Payments, Paypal, Afterpay etc.) in the "Setup - Payouts" screen. |
| Tax on Income | This is the default tax setting in Xero for all orders that has taxes attached to them. |
| Tax Free Income | This is the default tax setting in Xero for all orders that do not have taxes attached to them. |
Hit the Save button once you've selected the appropriate accounts and tax settings from Xero.
For US taxes: You will just need to select AVALARA for both the Tax on Income and Tax Free Income fields. Xero and Avalara will handle the tax mappings within Xero itself.
Tip: If you're unsure about setting up default accounts and taxes, we recommend speaking to your accountant or bookkeeper.