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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.
| Sales / Revenue Account | The default account all orders are posted to. You can further configure this for specific products and product types in the Setup - Products page. |
|---|---|
| Shipping Account | The default account where shipping lines or shipping revenue are posted. |
| Refunds Account | Choose whether to track refunds separately. Select Use original Sales / Revenue Account from Order to post refunds back to the order's original account, or Use a specific Refunds Account to track them separately, then select the Xero account. |
| Rounding Account | Where the app posts the small differences that come from currency conversion rounding on multi-currency orders, so invoices balance correctly. Only used if you sell in more than one currency. |
| Gift Cards Liability Account |
Set this if you sell gift cards. Select Use a specific Gift Cards Liability Account and choose the Xero account where gift card sales are posted. Note: ensure "Enable payments to this account" is checked for that account in Xero. |
| Tax on Income | The default Xero tax rate applied to orders that have tax attached. |
| Tax Free Income | The default Xero tax rate applied to orders that have no tax attached. |
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.