XERO-&-ERPAG-integration

One of the advantages of cloud applications (and ERPAG) is the ability to easily share data. The technology used is the Application programming interface (API). In general, the end user does not even care what technology is being used, so in this text we will focus on user work when integrating ERPAG and XERO.

Xero is accounting software (or as they say “Beautiful Business & accounting Software”), and through connectivity you get the possibility that your accountant (who, of course, uses Xero) can effectively run your business books.

A list of documents that are posted in Xero through API.

ERPAG and XERO documents

Items list:

Note: Items are searched and compared through “SKU” (https://www.erpag.com/news/what-is-sku)

Customer / Supplier:

Note: Contacts are searched and compared through “account number” in Xero, or “key” in ERPAG.
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2. Connecting ERPAG and XERO

At the time of writing this blog, ERPAG is not listed on the Xero App Marketplace yet (the process is ongoing), but this does not stop us from fully utilizing the integration.

In the Administration panel, in the Integrations section, we have anoption “Xero”.

After this step, you need to confirm access in the next 30 minutes.

Note: Since ERPAG is not listed on the Xero App Martketplace for now, you will only be allowed access for the next 30 minutes. When the period expires, you can easily extend it by confirming.
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3. Products and services – Accounts

On each item (Product or service) it is necessary to set up an Account from Xero.

• Expense account
• Income account
• Inventory asset account (for the product)

You can adjust each item individually, in the “XERO” section:

Also, you can set up the “default value” for newly entered items (or imported ones):

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4. Settings – Value Added Tax (VAT)

For general information about working with VAT you can find on the following link https://blog.erpag.com/2019/08/the-value-added-tax-vat-in-erpag.html

If your tax system is Valued Added Tax (VAT) you need to “match” tax rates from ERPAG and Xero.

There are two ways to do this:

• Tax location

• Tax category

Here you have to select appropriate tax rate from Xero for each tax location.
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5. Settings – Sales Tax (USA)

If you are based in USA, your tax system is a Sales Tax. For more information about working with Sales Tax in ERPAG, you can read on our blog: https://blog.erpag.com/2019/08/setting-up-us-sales-tax.html

Invoiced Sales Order from ERPAG:

Note: Auto Look Up US tax rates through API keys is not possible.

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6. Synchronization  (ERPAG – XERO)

With bulk action, we have a few more options.

• Status – On Hold

Selected documents are assigned “ON HOLD” status. They appear in the list but they will not be able to sync until the status changes to “READY”.

• Status – Ignore

Documents with this status will disappear from the sync list (they can be seen if  “Show Synchronized” is turned on, and you will not be able to “send” them to XERO. This is done in cases when document does not need to be sent to Xero (e.g. Voided or entered manually).

• Status – Ready

This option returns documents with the status “On Hold” or “Ignored” so that they can be synchronized again.

• Delete / Void (Xero)

This deletes the synchronized documents (if in Xero status is “draft”) or voids (if status is “approved”) from Xero. After Delete / Void they will get a status “Ready”.
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7. Supplier Invoice (Purchase order)

In the following topics we will explain how each document is transferred to Xero. Of course, our first document is a Supplier Invoice or Purchase Order.

A Purchase Order layout in ERPAG that has a Supplier Invoice generated.

Bill layout in Xero

Each document that is sent to Xero has a “draft” status, so it is necessary for the accountant to do “Approving”.

The same principles that apply to Bill, they also apply to Landed Cost and Contractor Bill.

With VAT, we sometimes do not have the right to have Input VAT as Deductible. This VAT value can be allocated as a “landed cost” and subsequently be a cost as a Cost of Goods Sold, or immediately to be a cost like a Tax Expense.

It is necessary to specify “Tax Expenses” in the Xero parameters.

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8. Invoice (Sales Order)

Only sales orders that have status Invoiced will be offered for synchronization. The list will not include sales orders that have non-packed items for which you already created an invoice. In this case, you must complete the packing.

And the document in Xero

Note: All prices in ERPAG are Tax Exclusive and they are transferred as such to XERO.

Customer return (and voided) will be “Credit note” in Xero

And a result in Xero

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9. Work Order (Manufacturing)

Xero doesn’t have a specific document for work orders, or for manufacturing in general.

In order to achieve adequate accounting and inventory control, two dummy documents will be created during synchronization.

• Dummy invoice – where material is “removed” from inventory and Cost Of Goods Sold (COGS) is formed.

You will notice that the value here is “0”, in order not to form a payable / receivable account.

When a product 01 is sold, COGS will not be re-formed because its stock price is 0. COGS is already posted through the “dummy invoice”.

For more information check out our blog on a similar topic: https://blog.erpag.com/2018/09/quickbooks-online-erpag-manufacturing.html
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10. Stock adjustment

These documents are synced in a similar way as Work Orders.

• “Dummy invoice” – reduces/decreases the amount in stock.

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11. Multi currency

Both in Xero and in ERPAG, working with multi-currency is supported. The currency needs to be opened in ERPAG and Xero

An example of a Sales order with a different currency (USD is a domestic currentcy)

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2019. ERPAG Inc