User Manual

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.

  • The integration works fully automatically and synchronizes purchases, sales invoices and stock values/movements between the two systems.
  • All inventory transactions must be performed in MRPeasy, the inventory levels (the piece counts) are only tracked in MRPeasy, and inventory valuation, WIP, COGS, etc. are posted to appropriate accounts in Xero.
  • Items, customers, and vendors are posted together with Purchase Orders and Invoices. Posting happens within 5 minutes of creation, or instantly, if "Add to Xero" button is clicked.
  • Materials on Hand, Finished Goods, Payroll, Cost of Goods Sold, WIP, etc. are sent to Xero once per day, MRPeasy creates a manual journal entry in Xero.
  • Purchase Orders can be posted to Xero as Bills or as Purchase Orders. (The "Invoice ID" must be entered for a PO for it to be posted to Xero.)
  • Payments for POs are synchronized two-ways with Xero if POs are posted as Bills to Xero. 
  • Payments of Invoices are synchronized two-ways.

Jump to:

  1. How to configure the integration with Xero?
  2. How to import items, customers, and vendors from Xero?
  3. How does the integration work between MRPeasy and Xero?
  4. When are synchronizations performed?
  5. How are new items, customers, and vendors posted to Xero?
  6. Can I use Xero Tracked Inventory?
  7. Troubleshooting, synchronization logs.

Setup of the integration between MRPeasy and Xero

For setting up the MRPeasy and Xero integration:

  1. Log in to MRPeasy.
  2. Navitage to Settings -> System settings -> Integrations.
  3. Click on Connect to Xero.
  4. Choose the accounts for journals (see below).
  5. Choose how to synchronize Purchase Orders (see below).
  6. Save.

During the setup phase, you will have to define the Xero accounts to which MRPeasy would post relevant journal entries. If you are unsure, which accounts to choose, consult your accountant.

Accounts need to be chosen for the following journal entries (with examples):

Description of journal entry Xero account to post the journal entry (example)
Outgoing invoices (to customers) Sales
Incoming invoices (from vendors) Purchases
Payments Bank
Raw materials stock journals Materials on Hand
Work in progress journals Work in Progress
Manufacturing overhead journals Manufacturing Overheads
Labour journals Payroll
Finished goods stock journals Finished Goods
Cost of goods sold journals Cost of Goods Sold
Manual stock adjustment journals Inventory Shrinkage
Additional costs due to transport between production sites Transport Costs

Purchase Orders from MRPeasy can be synchronized to Xero as:

  1. Purchase Orders in Xero, or
  2. Bills in Xero. Payments for purchases are synchronized only if purchase orders are posted to Xero as bills.

Importing stock items, customers, and vendors from Xero

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

How the integration works between MRPeasy and Xero

When an action is performed in MRPeasy, then to adjust accounts in Xero, MRPeasy creates a manual journal with appropriate values for debit and credit accounts.

# 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 two-ways** 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. Material costs are posted.
Accounts are updated in Xero once per day***
'Work in Progress' 'Materials on Hand'
4.2 Manufacturing order is started in MRPeasy. Planned manufacturing overheads and labor costs are posted.
Accounts are updated in Xero once per day***
'Work in Progress' 'Manufacturing Overheads'
'Work in Progress' 'Payroll'
5 Manufacturing is finished in MRPeasy. The differences between real costs and planned costs are posted. The products move from WIP to finished goods account.
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 two-ways** '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'
Other inventory transactions
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'

Synchronization schedule:

  • *) 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.
    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 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.

Posting new items, customers, and vendors to Xero

  • 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.

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://central.xero.com/s/article/Track-your-inventory).

Troubleshooting

To see what manual journal entries have been posted to Xero, please go to Settings -> System settings -> Integrations -> Synchronization logs.

Posting Invoices to Xero:

  • An invoice is not posted to Xero: 
    - 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.
    - Invoices are posted once per 5 minutes. To synchronize immediately, click Add to Xero in the Invoice details page.
  • An invoice cannot be updated:
    - If an invoice is updated in MRPeasy after it is paid in Xero, we cannot update it automatically, because it's not possible to edit invoices through the API that have payments or allocations associated to them. This can only be done in Xero.

Posting Purchase Orders to Xero:

  • A Purchase Order is not posted to Xero: 
    - 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. 
    - Purchase Orders are posted once per 5 minutes. To synchronize immediately, click Add to Xero in the Purchase Order details page.

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.