Xero

Xero is a powerful online accounting software that has localizations for many countries. MRPEasy focuses on manufacturing resource planning and reporting. Together with Xero accounting, it creates a powerful ERP system.

The integration works automatically to update purchases, sales invoices and stock values/movements between the two systems. During the setup phase, you will define the following accounts for MRPEasy to connect with in Xero:

  1. 'Xero account for outgoing invoices' = 'Sales' account
  2. 'Xero account for incoming invoices' = 'Purchases' account
  3. 'Xero account for payments' = 'Bank' account
  4. 'Xero account for raw materials stock journals' = 'Materials on Hand' account
  5. 'Xero account for work in progress journals' = 'Work in Progress' account
  6. 'Xero account for manufacturing overhead journals (to WIP)' = 'Manufacturing Overheads' account
  7. 'Xero account for labour journals (to WIP)' = 'Payroll' account
  8. 'Xero account for finished goods stock journals' = 'Finished Goods' account
  9. 'Xero account for cost of goods sold journals' = 'Cost of Goods Sold' account
  10. 'Xero account for manual stock adjustment journals' = 'Inventory Shrinkage' account
  11. 'Xero account for additional costs due to transport between production sites' = 'Transport Costs' account
  12. 'Sync purchase orders as' = option to sync as a purchase order or bill in Xero

To adjust accounts in Xero, MRPEasy creates a manual journal with appropriate values for debit and credit accounts.

Additionally, MRPEasy synchronizes bill and invoice payment information with Xero to update the payment status for POs and sales invoices.

How it works

# Event Reaction Xero Debit account Xero Credit account
Purchasing
1 A purchase order is created in MRPEasy and confirmed (an 'Invoice ID' is saved). PO is sent from MRPEasy to Xero* 'Purchases' Xero controlled (eg, Accounts Payable)
2 PO is paid. Payments are synced between MRPEasy and Xero** Xero controlled (eg, Accounts Payable) 'Bank'
3 PO is received in MRPEasy. Accounts are updated in Xero once per day*** 'Materials on Hand' 'Purchases'
Manufacturing
4.1 Parts are consumed in MRPEasy. Accounts are updated in Xero once per day*** 'Work in Progress' 'Materials on Hand'
4.2 Manufacturing operation is started in MRPEasy. Accounts are updated in Xero once per day*** 'Work in Progress' 'Manufacturing Overheads'
'Work in Progress' 'Payroll'
5 Manufacturing is finished in MRPEasy. Accounts are updated in Xero once per day*** 'Finished Goods' 'Work in Progress'
Sales
6 An invoice is created in MRPEasy and confirmed (status is changed from 'Dummy' to 'Unpaid'). Invoice is sent from MRPEasy to Xero* Xero controlled (eg, Accounts Receivable) 'Sales'
7 Invoice is paid. Payments are synced between MRPEasy and Xero** 'Bank' Xero controlled (eg, Accounts Receivable)
8 Goods are shipped in MRPEasy. Accounts are updated in Xero once per day*** 'Cost of Goods Sold' 'Finished Goods'
Additional operations
9 A manual stock lot is created in MRPEasy during the stock taking. Accounts are updated in Xero once per day*** 'Materials on Hand' / 'Finished Goods' 'Inventory Shrinkage'
10 A manual write-off is created in MRPEasy during the stock taking. Accounts are updated in Xero once per day*** 'Inventory Shrinkage' 'Materials on Hand' / 'Finished Goods'
11 A transfer order is made to move items between production sites, transport fee applied. Accounts are updated in Xero once per day*** 'Materials on Hand' / 'Finished Goods' 'Transport Costs'

*) Invoices and purchase orders are sent to Xero once per 5 minutes. Alternatively, it is possible to send a particular document to Xero immediately by clicking the button Add to Xero at the document's details page.

**) Payments are synchronized along with invoices and purchase orders and during nightly synchronizations.
Payments for purchases are synchronized only if purchase orders are posted to Xero as bills.

***) Actions, that are made once per day, are performed during the night (usually between 1 A.M. and 3 A.M.). They can be run manually by clicking button Synchronize at Settings -> System settings -> Integration -> Xero. Synchronization can be performed not more often than once per 5 minutes.

Additional functionality

It is possible to import stock items, customers, and vendors from Xero to MRPEasy at MRPEasy -> Settings -> System settings -> Integration -> Xero. This will import new items. If some items were imported before, they will be skipped, not imported twice.

When posting invoices and purchase orders to Xero, MRPEasy will create stock items, customers, and vendors in Xero, if they do not exist.

Stock items are matched by Item Code in Xero and Part Number in MRPEasy.

Set up

To set up the integration between Xero and MRPEasy please go to MRPEasy -> Settings -> System settings -> Integration -> Xero, click the Connect to Xero button and fill in the required information.

Tracked inventory

MRPEasy does not integrate with Xero Tracked Inventory because:

  1. At present Xero does not support importing of inventory values for items via API.
  2. Xero advises not to use its' inventory tracking for manufacturing companies (https://help.xero.com/us/InventoryTracked$Suitable).

Old version 

Above mentioned functionality is available in the new version of the integration, from August 24-th, 2017. If you have used the integration before that day, this functionality is not available. To enable it, go to MRPEasy -> Settings -> System settings -> Integration -> Xero, disconnect from Xero, and connect again.