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Setup Your Store's Xero Integration
Step 1 - Connect to Xero (Required)
To connect your Shopify store to your Xero account, simply click on the Connect button in the "Setup - Xero" screen.
This will redirect you to Xero, and prompt you to log into your Xero account.
Once you've logged in, you will be prompted to allow access for the "Post from Shopify" app to be able to post data from your Shopify store to Xero. Click on the "Allow access" button.
Once you've done so, you'll be redirected back to the "Post to Xero" app page with the Xero connection showing up as "Account connected".
Step 2 - Default Settings (Required)
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.
Step 3 - Invoice Prefix (Optional)
This is an optional setting.
You may choose to add a prefix to all Xero invoices for orders synced from Shopify.
This will help identify invoices in Xero that have been imported from Shopify vs. other sources.
Eg. if your order number from Shopify is 1234, you may wish to add "SHOP-" as a prefix so the invoice in Xero will be SHOP-1234. You can select any prefix you'd like.
Should you choose not to add a prefix, the invoice number in Xero will just be the Shopify order number, ie. 1234.
Hit the "Save" button once you've decided.
Step 4 - Customer on Invoice (Optional)
This is an optional setting.
Depending on your current workflow, you may choose to have all orders invoiced to a specific customer instead of the actual customer on the Shopify order.
If you choose to use the customer that is on the Shopify order, the invoices created in Xero will have their first name, last email and their email address / phone number.
This is particularly handy if you use Xero to track customers and if you plan to use Xero to send out invoices.
If you choose to select a single customer for all invoices (eg. Shopify), all the invoices in Xero will have that specific customer you have selected.
Should you choose to use a single customer, you can select that from your list of existing customers, or you can create that customer from the app and it'll automatically create the customer in Xero.
Step 5 - Match Product SKUs (Optional)
This is an optional setting.
If you're tracking COGS and Inventory in Xero, you will want to have this enabled so that orders that have items set up in Xero get matched and posted to the right Xero accounts for that item.
More details on this: Tracking COGS and Inventory
Step 6 - Auto Sync Orders (Optional)
This is an optional setting.
If this is your first time using "Post to Xero", we suggest leaving this disabled and manually posting your first order via the "Orders - Dashboard" screen, and then checking in Xero to ensure everything flows through as expected.
Once you're happy with how orders are flowing through to Xero, you can then enable the setting so that orders are synced across to Xero automatically as they are created without any manual intervention.