Xero

Xero is a powerful online accounting software that has localizations for many countries. MRPeasy focuses on manufacturing resource planning, reporting, inventory management, sales, and procurement. MRPeasy together with Xero accounting creates a very powerful ERP system. We strongly recommend performing all business operations in MRPeasy, and in Xero the accounting only.

It is possible to make a simple or an in-depth integration.

Simple integration:

  • Easy to set up.
  • Only sales and purchasing documents can be sent to Xero: Invoices, Credit, Invoices, Purchase Orders, Bills, Direct payments (for prepayment invoices).

In-depth integration:

  • Additionally, all inventory and manufacturing transactions of each day are posted to Xero with a manual journal entry.
  • These journals include changes in inventory accounts, Work in progress (WIP), Cost of Goods Sold (COGS), etc.
  • Requires expert accounting knowledge to complete.

Jump to:

  1. Demo video: Xero integration
  2. How to connect with Xero?
  3. How does the integration work between MRPeasy and Xero?
  4. How to send Purchase Orders (POs), Bills, Invoices to Xero?
  5. How are new items, customers, and vendors posted to Xero?
  6. How to import items, customers, and vendors from Xero?
  7. When are synchronizations performed?
  8. How is the first synchronization performed?
  9. Can I use Xero Tracked Inventory?
  10. How does inventory tracking work in MRPeasy?
  11. Synchronization of tax.
  12. Selecting what to synchronize.
  13. Choosing how Purchase Orders / Purchase Invoices are synchronized.
  14. Selecting accounts for integration.
  15. Can I use several inventory accounts?
  16. Can I use several sales accounts?
  17. How to review, change, or disconnect the integration?
  18. How to reconcile direct labor, applied overhead, and transfer expense liabilities?
  19. Troubleshooting, synchronization logs.

Setup of the integration between MRPeasy and Xero

Step 1. Connect MRPeasy and Xero

  1. Log in to MRPeasy.
  2. Navigate to Settings -> System settings -> Integrations.
  3. Click on Connect to Xero to connect MRPeasy and Xero.

Step 2. Choose what to synchronize

It is possible to choose the synchronization of the following:

  1. Sales - If selected, Invoices and Credit-Invoices are sent to Xero automatically, according to the synchronization schedule. If not selected, these can be sent manually only.
  2. Procurement - If selected, Purchase Orders / Purchase Invoices are sent to Xero automatically, according to the synchronization schedule. If not selected, POs can be sent manually only.
  3. Balances - If selected, the financial transactions that are recorded in MRPeasy regarding inventory management, manufacturing, procurement, and sales, are posted to Xero with journal entries, according to the synchronization schedule. If not selected, the posting of balances with journals is completely disabled.
    Manual journals, which have been posted to Xero are shown in detail at Settings -> System settings -> Integrations -> Xero -> Synchronization logs.
    MRPeasy is a perpetual inventory system, if the periodic inventory system is used in your accounting (in Xero), then synchronization of balances should be disabled.

Step 3. Choose how Purchase Orders are sent to Xero

Purchase Orders from MRPeasy can be posted to Xero as:

  1. Purchase Orders in Xero, or
  2. Bills in Xero.

Important! 

  • Payments for purchases are synchronized only if purchase orders are posted to Xero as bills.
  • If Several invoices per PO is enabled, then POs are not posted to Xero. Purchase Invoices are posted as Bills.

Step 4a. Select accounts, if balances are not synchronized

If synchronization of "Balances" is not selected in step 2, the following accounts must be chosen:

  1. Purchases (Current Asset or Expense).
    - The account where the cost of purchased items is posted. This could be an asset account, an expense account, etc.
    - This account is used when creating new items in Xero. Later, in each items' details, at Xero -> Products and services, it is possible to change its purchases account.
    - The Purchases account is debited when Bills are created in Xero.
  2. Sales (Revenue).
    - The account where sales revenue is posted, by default.
    - The default sales account used when creating new items in Xero. Later, in each items' details, at Xero -> Products and services, it is possible to define its sales account.
    - The Sales account is debited after sending an Invoice to Xero and approving it.
  3. Bank account (Bank).
    - An account to where payments, if entered in MRPeasy, are posted to.

After the mapping of accounts is Saved, the integration is set up. Continue to Step 5.

Step 4b. Select accounts, if balances are synchronized

If synchronization of "Balances" is chosen in step 2, the following accounts or similar must be chosen:

  1. Purchases (Current Asset).
    - The account where the cost of purchased items is posted (initially). This is an account for holding costs of items or services not yet received, but the invoice from the vendor has been received.
    - The Purchases account is debited when Bills are created in Xero and credited when sending received items' balances to Xero.
    - This account is used when creating new items in Xero:
    (1) For each MRPeasy inventory item, at Xero -> Products and services the account must match this account selected for the integration. It must not be manually changed in any documents in Xero.
    (2) For each MRPeasy non-inventory item, at Xero -> Products and services the account may be freely chosen.
  2. Sales (Revenue).
    - The account where sales revenue is posted, by default.
    - The default sales account used when creating new items in Xero. Later, in each items' details, at Xero -> Products and services, it is possible to define its sales account.
    - The Sales account is debited after sending an Invoice to Xero and approving it.
  3. Bank account (Bank).
    - An account to where payments, if entered in MRPeasy, are posted to.
  4. One Inventory (Current asset) account only; or separate Finished goods (Current asset) and Materials on hand (Current asset) accounts.
    - Accounts for tracking the value of inventory.
    - A current asset account to record stock on hand is necessary. Do NOT choose an account type of 'INVENTORY' - this is a special system account type for Xero Tracked Inventory functionality, which cannot be used together with the integration.
    - All items with a BOM are considered finished goods; items without a BOM are considered materials.
  5. Work in progress (Current asset).
    - An account for holding the value of currently unfinished goods, open manufacturing orders. A cost of a product = consumed materials + performed direct labor + applied manufacturing overhead.
  6. Direct labor (Current liability).
    - An account for posting direct labor costs, which are applied to product cost (to work in progress) according to time worked on a job. This should be a current liability, wages earned by employees, and should be reconciled with payroll regularly.
    - If the allocation of direct labor is not desired, then users’ hourly labor rates must be defined as 0 in MRPeasy.
  7. Applied manufacturing overhead (Current liability).
    - An account for posting manufacturing overhead costs, which are applied to product cost (to work in progress). This should be a current liability, manufacturing overhead expenses pre-applied to product costs, and should be reconciled with actual expenses regularly.
    - If the allocation of manufacturing overhead is not desired, then workstations’ hourly rates, and fixed, and variable costs in Routings must be defined as 0 in MRPeasy.
  8. Transfer orders liability (Current liability).
    - If you have several sites between which you move items, then transfer fees, which are applied to inventory costs, are posted on this account. This should be a liability, transfer expenses pre-applied to inventory, and should be reconciled regularly with actual expenses.
  9. Cost of goods sold (Expense).
    - An account where the cost of goods sold is posted, once the items are shipped to the customer.
  10. A single Inventory Adjustments account; or separate Inventory gain (Revenue) and Inventory loss (Expense) accounts.
    - Accounts for posting inventory balance changes from manual adjustments of inventory levels.
  11. Optionally, Customer Prepayments (Liability).
    - It is used when a prepayment invoice is paid by a customer.

After the mapping of accounts is Saved, the integration is set up. Make sure to read the following chapters, and then continue to Step 5.

User access rights in Xero

It is recommended to enable Advisor access for the account manager because otherwise, it is not possible to see manual journal entries that MRPeasy posts to Xero.

Xero Tracked Inventory

Inventory (stock) tracking should not be used in Xero for items that are managed in MRPeasy. Xero makes some automatic inventory transactions for these items, e.g. when they are bought or sold, which MRPeasy does not control.

MRPeasy itself posts changes in inventory balances to accounts during nightly synchronizations.

Technical reasons why MRPeasy does not integrate with Xero Tracked Inventory are the following:

  1. At present Xero does not support the importing of inventory values for items via API.
  2. Xero advises not to use its' inventory tracking for manufacturing companies (https://central.xero.com/s/article/Track-your-inventory), or when using a 3rd party inventory application (https://central.xero.com/s/article/Options-for-managing-inventory-in-Xero)
Using different asset accounts for various inventory items

For inventory items, if "Balances" are synchronized, it’s possible to use a single Inventory account, or separately one Materials on hand account and one Finished goods account.

When an MRPeasy Purchase Order is synchronized to Xero, then:

  • On the Xero PO and Bill, the asset account must not be changed. The integration default account must be used.

Otherwise, e.g., when materials are consumed in manufacturing, or items directly sold, MRPeasy will post a manual journal, which will credit the original asset account, but not the account that was changed on the Bill/PO.

Using different accounts for various non-inventory items

Non-inventory items in MRPeasy can have custom accounts assigned in Xero.

There are no inventory tracking transactions for non-inventory items, thus, there are no transactions that are sent from MRPeasy to Xero with a manual journal entry regarding these. As a result, the accounts which are on Xero Bills or Invoices can be freely edited for such items.

Using different Sales accounts for various items

Different sales accounts for items can be assigned in Xero, after the invoice is posted from MRPeasy to Xero. Sales account for each item can be defined in Xero, at Xero -> Products and services.

Step 5. Importing stock items, customers, and vendors from Xero

After the mapping of accounts is saved, the integration is already set up.

Now, it is possible to import stock items, customers, and vendors from Xero to MRPeasy at MRPeasy -> Settings -> System settings -> Integrations -> Xero, by using the buttons Import stock itemsImport customersImport vendors.

This will import new objects only. If some objects were imported before, these will be skipped and not imported twice, which means you can do this action several times.

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

Creating new items, customers, and vendors in Xero
  • When posting invoices, purchase orders, or bills to Xero, MRPeasy will create stock items, customers, and vendors in Xero, if they do not exist.
  • According to the integration configuration, a Purchases and Sales account will be configured for the item in Xero.
  • Stock items are matched by Item Code in Xero and Part Number in MRPeasy.
  • If a part number is longer than 30 characters, then the item is not transferred to Xero as a product. The part number is combined with the description into the description field.

Step 6. First synchronization

When making the connection between MRPeasy and Xero:

  1. The changes in account balances from that day are posted to Xero during the next nightly synchronization.
  2. The previous POs and Invoices are posted only after you open them and save. If you do not make changes to old documents, they are not posted to Xero.

Step 7. Reviewing, updating, or disconnecting the integration

Should you wish to review the chosen settings for the integration, or make any changes to the integration, you can do this at Settings -> System settings -> Xero -> Change accounts.

Please note that when you change accounts, then the next transactions are posted to the new accounts. No changes are made to any historical data already posted to Xero.

The integration can be disconnected at Settings -> System settings -> Xero -> Disconnect.

How the integration between MRPeasy and Xero works

Jump to:

  1. Sending Purchase Order, Bills, and Invoices to Xero.
  2. Events and transactions.
  3. Synchronization schedule.
  4. Inventory tracking principles in MRPeasy.

Sending Purchase Orders / Bills and Invoices to Xero

Sending Purchase Orders or Bills to Xero

During integration setup, you must choose if Purchase Orders in MRPeasy are posted to Xero as Bills or Purchase orders.

Once the Invoice ID has been entered on Purchase Orders or Purchase Invoices in MRPeasy, then these will be synchronized to Xero as drafts.

If a payment has been saved in MRPeasy, the document in Xero will automatically become approved.

After a Bill / Purchase order has been approved in Xero, it is not possible to update it via the integration from MRPeasy any longer.

Posting additional fees on an MRPeasy Purchase Order to Xero

If the Additional fees field is used on a Purchase Order in MRPeasy, then this is posted as a line item to Xero.

If "Balances" are synchronized, this must be posted to the integration default account (Purchases). The additional fees are expenses that are added to inventory valuation.

If some additional fees should be posted to an expense account immediately, and these are not part of inventory valuation, then for these, non-inventory items in MRPeasy should be used.

Sending Invoices to Xero

Once an invoice type is marked Invoice or Credit invoice:

  • and status is Dummy, it is synced to Xero as a draft invoice. It must be approved in Xero.
  • and status is Paid or Paid partially, it is synced to Xero as an approved invoice. It must have a Due date saved in MRPeasy to post it to Xero.

After an Invoice is approved in Xero, it is not possible to update it via the integration from MRPeasy any longer.

Prepayments

Prepayment invoices are posted to Xero as direct payments with Transaction: Receive Money. Though Xero has the option to create prepayments, it is not possible to update prepayments via API after a prepayment is created. Because of that limitation, the integration with Xero does not use that type of document.

To post a prepayment to Xero, the following conditions must be met:

  • The invoice with the type Prepayment invoice must be fully paid.
  • Debit and credit accounts for prepayments must be selected at Settings -> System settings -> Integrations -> Xero -> Change accounts.

MRPeasy posts prepayments to Xero as follows:

  1. When posting a prepayment invoice, a bank transaction is created in Xero. The Customer prepayments account is selected on every line.
  2. When posting a final invoice, the Prepayment line is added to the invoice with a negative value.

You can find the posted prepayments in Xero, at Accounting -> Bank accounts -> Open your bank account -> Account transactions.

Tax rates

The synchronization of tax rates works as follows:

  1. MRPeasy operates with tax percentages only, there are no 'named' tax rates.
  2. When a document with tax is sent to Xero, the tax rate in Xero with the same percentage is automatically chosen. If there are several tax rates with the same percentage, then the correct tax rate must be chosen in Xero.
  3. If you need a 'No tax' invoice, please leave the tax percentage field empty in MRPeasy.
  4. If you need a 0% tax, please enter tax as '0%' in MRPeasy.
  5. Unfortunately, MRPeasy cannot post 'Tax included' invoices. If this is important, please update these invoices in Xero.

Events and transactions

The following tables describe all events and transactions, in case "Balances" are synchronized.

If "Balances" are not synchronized, then accounting transactions are created only by Xero as a result of creating bills, invoices, and direct payments (for prepayments).

Jump to:

  1. Events in direction MRPeasy -> Xero and transactions.
  2. Events in direction Xero -> MRPeasy and transactions.

Events in MRPeasy and the resulting events and transactions in Xero:

# MRPeasy document MRPeasy event Xero event Xero Debit account Xero Credit account
Purchasing
1 Purchase Order Purchase Order is created. No event.    
1.1 Purchase Order / Purchase Invoice The 'Invoice ID' is saved. If MRPeasy PO is posted as PO, PO is created*. No transaction.
If MRPeasy PO / PI is posted as a Bill, Bill is created*. 'Purchases' Xero controlled (eg, Accounts Payable)
1.2 Purchase Order / Purchase Invoice PO is updated. If MRPeasy PO is posted as PO, PO is updated*. No transaction.
PO / PI is updated. If MRPeasy PO / PI is posted as a Bill, Bill is updated*, if Xero accepts the update. 
Approved documents cannot be updated by MRPeasy.
According to 1.1
1.3 Purchase Order / Purchase Invoice PO is received. Journal is made***.
(Exceptions: 2.2, 3.1)
'Materials on Hand' 'Purchases'
1.4 Purchase Order / Purchase Invoice  Payment is saved. If MRPeasy PO / PI is posted as a Bill, payment is saved for the Bill**.
(Payment is created according to the difference in the sum of saved payments in MRPeasy and Xero.)
Xero controlled (eg, Accounts Payable) 'Bank'
1.5 Purchase Order / Purchase Invoice  Payment is deleted. No event, payment must be deleted manually.    
1.6  Purchase Order / Purchase Invoice  PO / PI is deleted.  1. If PO had additional transactions associated, a new journal is made with net adjustments***. According to 1.3, 2.2, 3.1
2. PO / Bill is not deleted, it must be deleted manually.    
Purchasing - additional transactions of Subcontracting Purchase Orders
2 Shipment (for a Purchase Order.) Shipment is created for shipping parts to vendor No event.    
2.1 Shipment  Goods are picked from stock. Journal is made***. 'Work in Progress' 'Materials on Hand'
2.2 Purchase Order PO is received. Journal is made***. (This is an exception to 1.3) 'Finished Goods' 'Work in Progress'
'Purchases'
3 Purchase Order (for an operation in a MO.) "Shipment date" is saved. Journal is made***. 'Work in Progress' 'Purchases'
3.1 Purchase Order PO is received. No event. (This is an exception to 1.3)    
Manufacturing
4 Manufacturing Order Manufacturing Order is created No event.    
4.1 Manufacturing Order Parts are consumed. Journal is made***. 'Work in Progress' 'Materials on Hand'
 
4.2 Manufacturing Order  Operations are started. 1. Journal is made with full planned manufacturing overhead cost***. 'Work in Progress' 'Applied manufacturing overhead'
2. Journal is made with full planned labor cost***. 'Work in Progress' 'Payroll/Direct labor'
4.3 Manufacturing Order Manufacturing Order is finished. 1. Journal is made***. 'Finished Goods' 'Work in Progress'
      2. Journal is made to adjust manufacturing overhead and labor cost***. According to 4.2.
Sales
5 Customer Order Customer Order is created No event.    
6.1 Invoice Invoice status is changed from 'Dummy' to 'Unpaid'. Invoice is created*. Xero controlled (eg, Accounts Receivable) 'Sales'
6.2 Invoice Invoice is updated. Invoice is updated*, if Xero accepts the update. Approved documents cannot be updated by MRPeasy. According to 6.1
6.3 Invoice Payment is saved. Payment is saved for Invoice**. (Payment is created according to the difference in the sum of saved payments in MRPeasy and Xero.) 'Bank' Xero controlled (eg, Accounts Receivable)
6.4 Invoice Payment is deleted. No event, payment must be deleted manually.    
6.5 Invoice Invoice is deleted. No event, invoice must be deleted manually.    
7.1 Credit-invoice Credit-invoice status is changed from 'Dummy' to 'Unpaid'. Credit Note is created*. Xero controlled (eg, Accounts Receivable) 'Sales'
7.2 Credit-invoice Credit-invoice is updated. Credit Note is updated*, if Xero accepts the update. Approved documents cannot be updated by MRPeasy. According to 7.1
7.3 Credit-invoice Payment is saved. Payment is saved for Credit Note** (Payment is created according to the difference in the sum of saved payments in MRPeasy and Xero.) 'Bank' Xero controlled (eg, Accounts Receivable)
7.4 Credit-invoice Payment is deleted. No event, payment must be deleted manually.    
7.5 Credit-invoice Credit-invoice is deleted. No event, credit-invoice must be deleted manually.    
8.1 Prepayment invoice Invoice status is changed from 'Dummy' to 'Unpaid'. No event.    
8.2 Prepayment invoice Payment is saved. Direct Payment is created*. 'Bank' 'Customer Prepayments'
8.3 Prepayment invoice Payment is deleted. No event, Direct Payment must be deleted manually.    
8.4 Invoice Prepayment is applied to an invoice. A line "Prepayment" with the negative prepayment amount is added to the invoice*. 'Customer Prepayments' 'Sales'
8.5 Credit-invoice Prepayment is applied to a credit-invoice, for a refund. Two lines are added to the Credit Note in order to debit the 'Customer prepayments' account and credit the 'Accounts Receivable' account:
- "Prepayment" with a positive prepayment amount.
- "Customer prepayment refund" with a negative prepayment amount (to 'Sales').
'Customer Prepayments' Xero controlled (eg, Accounts Receivable)
8.6 Credit-invoice Payment is saved. Payment is saved for Credit Note** (Payment is created according to the difference in the sum of saved payments in MRPeasy and Xero.) Xero controlled (eg, Accounts Receivable) 'Bank'
9 Shipment (for a Customer Order.) Shipment is created. No event.    
9.1 Shipment Goods are picked from stock. Journal is made***. 'Cost of Goods Sold' 'Finished Goods'
RMA (Return Merchandise Authorization)
10 RMA order RMA order is created and received. No event.    
10.1 Stock lot The received item is returned into general stock (status of the stock lot is changed from 'RMA returned' to 'Received', the cost is manually assigned). Journal is made***. 'Materials on Hand' / 'Finished Goods' 'Inventory gain'
11 Manufacturing Order RMA service order is created. No event.    
11.1 Manufacturing Order Parts are consumed. Journal is made***. 'Work In Progress' 'Materials On Hand'
11.2 Manufacturing Order Operations are started. 1. Journal is made with full planned manufacturing overhead cost***. 'Work in Progress' 'Applied manufacturing overhead'
2. Journal is made with full planned labor cost***. 'Work in Progress' 'Payroll/Direct labor'
11.3 Manufacturing Order Order is finished. 1. Journal is made, on MO "Finish date"***. 'Cost of Goods Sold' 'Work in Progress'
2. Journal is made to adjust manufacturing overhead and labor cost***. According to 11.2.
Other inventory transactions
12 Manual stock lot A manual stock lot is created in MRPeasy during the stock-taking. Journal is made***. 'Materials on Hand' / 'Finished Goods' 'Inventory gain'
13 Write-off A manual write-off is created in MRPeasy during the stock-taking. Journal is made***. 'Inventory loss' 'Materials on Hand' / 'Finished Goods'
14 Transfer Order Transport fees are applied to a Transfer Order, and Transfer Order is received. Journal is made***. 'Materials on Hand' / 'Finished Goods' 'Transfer orders liability'
Other transactions
15 Purchase Order, Purchase Invoice, Manufacturing Order, Manual stock lot, Write-off, Transfer Order, Shipment Document is changed and inventory cost or balances change. Journal is made with net adjustment***. According to the transactions, which are updated.

 

Events in Xero and the resulting events in MRPeasy:

# Xero document Xero event MRPeasy event
Payments
1 Bill, Invoice, Credit-Invoice Payment is saved. Payment is saved for Purchase Order / Purchase Invoice.**
(Payment is created according to the difference in the sum of saved payments in MRPeasy and Xero.)
2 Bill, Invoice, Credit-Invoice Payment is deleted. No event, payment must be deleted manually.

 

Synchronization schedule:

  • *) New 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 on the document's details page.
  • **) Payments are synchronized two-ways between the systems. The synchronization of payments happens in the following cases:
    a. When a new invoice or a purchase order is sent to Xero from MRPeasy*. 
    b. When an invoice or a purchase order is opened in MRPeasy and button Update in Xero is pressed.
    c. During nightly synchronizations***.
    NB! 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 evening (usually between 9 p.m. and 1 p.m.).
    This synchronization can be run manually by clicking button Synchronize at Settings -> System settings -> Integration -> Xero. The manual synchronization can be performed once per 5 minutes.
    Actions that happen during this synchronization are:
    1. Synchronization of balances, by making a journal in Xero.
    2. Synchronization of payment information between the systems.

Inventory tracking in MRPeasy

In MRPeasy, the principles of inventory tracking are the following:
  1. All items in inventory are tracked using stock lot tracking within MRPeasy. I.e. each batch of physical items is accounted for separately.
  2. By default, MRPeasy uses FIFO (FEFO, when Expiry dates are used) principle when booking goods for consuming or shipping goods from inventory. 
    It is possible to manually manage and override the bookings and consumption of inventory, e.g. for actual costing and/or for very detailed tracking and traceability.
  3. Financial transactions are automatically made when specific events happen with the inventory.
    This means that MRPeasy is a "Perpetual inventory system", not a "Periodic inventory system". If you use the periodical method for inventory valuation (and Cost of Goods Sold calculation) (in Xero), then synchronization of balances from MRPeasy to Xero should be disabled.

Reconciling accounts

How to reconcile a Direct labor account?

Direct labor cost is part of the cost of goods sold (Expense), and it is pre-applied to products before a pay run is made. This allows to estimate the real cost of products. This also means that the pre-applied portion of labor costs must be reconciled with actual labor costs, to account for any difference between estimated and actual expenses.

Generic example, periodic reconciliation of posted direct labor:

  1. A pay run is made.
    For example, resulting account transactions might be the following:
    D Wages and Salaries (Expense)
    C Payroll (Current liability)
    D Payroll (Current liability)
    C Bank (Current assets)

  2. A manual journal entry is made to zero out direct labor liability for that period:
    D Direct labor account (Current liability)
    C Wages expense (Expense) / or COGS / or similar

Always consult your local accounting specialists, to make sure you follow local laws and regulations.

How to reconcile the Manufacturing overhead account?

Applied manufacturing overhead is part of the cost of goods sold (Expense), and it is pre-applied to products before bills have actually been received. This allows to estimate the real cost of products. But this also means that the pre-applied portion of manufacturing overhead must be reconciled with actual expenses, to account for any difference between estimated and actual expenses.

Generic example, periodic reconciliation of applied manufacturing overhead:

  1. Bills are entered on expense accounts as normal.
    For example, resulting account transactions might be the following:
    D Expense account(s), e.g. COGS
    C Accounts payable (Current liability)
    D Accounts payable (Current liability)
    C Bank (Current assets)

  2. At the end of the accounting period, a manual journal entry is made to zero the applied manufacturing overhead account for that period:
    D Applied manufacturing overhead (Current liability)
    C Expenses account(s) / or COGS / or similar.

Always consult your local accounting specialists, to make sure you follow local laws and regulations.

How to reconcile the Transfer Orders Liability account?

Transfer orders cost is part of the cost of goods sold (Expense), and it is pre-applied to products before bills have actually been received. This allows to estimate the real cost of products. But this also means that the pre-applied portion of expenses must be reconciled with actual expenses, to account for any difference between estimated and actual expenses

Generic example, periodic reconciliation of posted transfer orders liability:

  1. Transportation expenses are entered as normal.
    For example, resulting account transactions might be the following:
    D Transportation (Expenses)
    C Accounts payable (Current liability)
    D Accounts payable (Current liability)
    C Bank (Current assets)

  2. At the end of the accounting period, a manual journal entry is made to zero the Transfer Orders Liability account for that period:
    D Transfer Orders Liability (Current liability)
    C Expenses account(s) / or COGS / or similar.

Always consult your local accounting specialists, to make sure you follow local laws and regulations.

Troubleshooting

Issues:

  • I don't understand why some manual journal entries have been posted to Xero, or how these are calculated.
    - To see detailed information about all manual journal that have been sent to Xero, please go to Settings -> System settings -> Integrations -> Xero -> Synchronization logs.
    - Please check the list of events and transactions to understand when certain transactions are recorded.
  • An invoice is not posted to Xero: 
    To quickly find the reason, please click the Add to Xero button, after which you should see a relevant error message.
    There may be several reasons:
    a) Invoices are posted once per 5 minutes. To synchronize immediately, click Add to Xero in the Invoice details page.
    b) MRPeasy only posts invoices in statuses 'Unpaid', 'Paid partially' or 'Paid'; and types 'Invoice' or 'Credit invoice'. Invoices in other statuses or types are not posted. Please check the status and type of the invoice.
    c) The invoice does not have a "Due date".
    d) The invoice was created before the integration was initialized. Please open and save it.
  • An invoice cannot be updated. Error message "Invoice not of valid status for modification"
    - MRPeasy cannot update invoices, which have status "Void", "Deleted", or "Paid" (even partially). Xero does not allow MRPeasy to update these.
    - If it has the status "Paid", please update it manually in Xero.
    - "Void" and "Deleted" invoices are hidden in Xero, but can be searched for.
    - If the invoice has the status "Void" or "Deleted", then
    a) It could be manually re-created in Xero. (It will not be connected with MRPeasy)
    b) It could be deleted in MRPeasy and re-sent to Xero, to create a new invoice.
  • A Purchase Order is not posted to Xero: 
    To quickly find the reason, please click the Add to Xero button, after which you should see a relevant error message.
    There may be several reasons:
    a) Purchase orders are posted once per 5 minutes. To synchronize immediately, click Add to Xero in the purchase order details page.
    b) The "Invoice ID" must be saved in the purchase order details in MRPeasy, before it will be posted. Please check that this is done and the PO is saved. 
    c) In MRPeasy you have enabled software setting "Several invoices per PO = Yes", in which case POs are not sent to Xero. Please open the PO and create an invoice to send a bill to Xero.
    d) The PO was created before the integration was initialized. Please open and save it.
  • A Purchase Order, or a bill cannot be updated. Error message: "Invoice not of valid status for modification"
    - MRPeasy cannot updated bills or purchase orders, which have the status "Approved", "Void", or "Deleted". Xero does not allow MRPeasy to update these.
    - If it has the status "Approved", please update it manually in Xero.
    - "Void" and "Deleted" bills are hidden in Xero, but can be searched for.
    - If the bill has the status "Void" or "Deleted", then
    a) It could be manually re-created in Xero. (It will not be connected with MRPeasy)
    b) It could be deleted in MRPeasy and re-sent to Xero, to create a new bill.
  • Error message: "Account code or ID must be specified" or "The TaxType field is mandatory"
    - Please go to Xero -> Products and services, and check that every product in the document has both purchases and sales accounts set.
  • Error message: "Organisation is not subscribed to currency ..."
    - This means that Xero does not recognize this currency.
    - Please check that currency symbols in MRPeasy correspond to international standard codes. E.g. the US dollar should be USD, not US$, the Australian dollar should be AUD, not AU$. See: https://en.wikipedia.org/wiki/ISO_4217
    - Please check that the currency is set up for use in your Xero account.
  • Error message: "(Item): the ... account is invalid"
    - This means that the configured "Purchases" or "Sales" account is incorrect for Xero.
    - The account could be incorrect in one of the two locations:
    a) If the referred item does not yet exist in Xero, then at MRPeasy and Xero integration settings. (MRPeasy -> Settings -> System settings -> Integrations -> Xero -> Change accounts)
    b) Or if the referred item already exists in Xero, then on the item details page in Xero. (Xero -> Business -> Products and services -> Item details).
    - Some special account types cannot be used for items, such as 'INVENTORY'.
  • Error message: "Item code ... is not valid"
    - In Xero, the maximum length of a part number is 30 characters. Please make this part number shorter and try to post the document to Xero again.
  • Customers are not imported from Xero.
    - The company with this name or account number exists in MRPeasy. It can be hidden if it is deleted. In this case, please go to CRM -> Customers, and find the company by number. This will show both active and deleted companies.
    If you do not remember the number, please use some general parts (as "C" or "0") to find the customers. If the customer exists but is deleted, please open it and click the Restore button.
  • MRPeasy is not connected with Xero any more, the system asks me to renew the connection. "Xero returned the following error: Integration with Xero has expired"
    - For security reasons, the connection between Xero and MRPeasy expires once per hour. This is the functionality of Xero.
    - When this happens, MRPeasy tries to renew the connection. Usually, this happens successfully. But sometimes the connection cannot be renewed. In this case, this message is displayed.
    - Please click the "Renew now" button at Settings -> System settings -> Integrations -> Xero to restore the connection.

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.

Support

The integration between Xero and MRPeasy is maintained by MRPeasy. If you have technical questions about the integration, please turn to MRPeasy support. However, our Support team is unable to consult you regarding the setup of your accounting in Xero.

We use cookies to enhance your experience on our website. If you continue using this website, we assume that you agree with these. Agree Learn more Ok