Hi, team, and welcome back.
In this session we're going to be going through how to integrate your Vend and your Xero.
Now is the perfect time to be doing this because
if you are already using Xero, there's a good chance you already have a long list of customers
inside your Xero and a long list of suppliers.
We can save a lot of time in loading in our customers and suppliers
by integrating our Vend and Xero, and pulling that information out
of our Xero into our Vend to get it started.
We will disable integration, continue with the rest of our set up
and turn it back on just before go live day. So here's how we gonna do that.
So we've already seen a bit about Xero integration settings
when we configured our text at sales taxes.
To find that again you're going to go from the home page here
you are going to click up on setup
and add ons.
You'll recall when we did your sales taxes that with your--
several fields that were there we didn't complete.
So we click on add-ons, we choose Xero, and settings.
Fantastic. So you'll recall that we configured these out sales taxes earlier
and they won't saved because we didn't complete the rest of page,
but they're still available so nothing is changed there, it's all ready to go.
What I have prepared for you is a document underneath this video
that I suggest you download now. It should look a little something like this.
It's a Vend and Xero integration settings.
Basically this is the only document in the world, that I'm aware of,
that takes you through, exactly, what each of these fields needs to be,
because what we are looking, what we are doing here
is connecting different transactions types, so we've got
purchase order, sales transactions, register closures, cash in and out,
and, you know, receiving payments for customer store credits,
pretty cash. Basically every transaction that Vend needs to do
that has a financial impact, we're telling where to send it to in Xero.
Across the various help guides
each one of these sections tends to their own help article,
because it's quite a big topic.
What I have done is summarize all of those and put that into a hat for
a two pager.
With an amendment at the bottom
That it's gonna take you through exactly what we need to do.
So that's what we are going to be working through today.
What we're gonna be doing is setting up chart of account codes in your Xero,
so for that you are going to need to be a Xero administrator and if you are not,
you need to talk to your Xero administrator and get him to help you with this,
this part here.
And it's important that every one of these fields is completed
so that Vend has somewhere to send that sort of transaction
So we start at the top and work our way down.
Now first with our Xero settings.
This is the most common fault that I see with the Xero integration,
under register closure detail
you wanna select 'Send a summary by account code'
The other options are 'Detail each sale' and 'Send a summary by product'
Now those sound really good, you think
'Oh, great. I'd love my Xero to have the details of a whole days of sale'
And sales or summary of every product that was sold in the given day,
but what that does, when Vend bundles up your day of transactions
and sends them to Xero, is create a very, very long customer invoice.
And every one of those lines is going to appear in your GST order of report in your Xero.
Every time you go to do your GST return, you gonna find it to be
amazingly long and sometimes so long that Xero can't even load it.
So avoid those two and select 'Send a summary by account code'.
It's as much detail as we need in our accounting system,
because all of that product details, sales details, all that stuff
is our Vend anyway.
So that's your first option, that's a good start.
Now this one here 'Costs of goods', we're gonna leave that alone for now.
There is-- that's what page three
is about.
We'll come back to that in a later session okay? So there's quite a lot of
caveats I wanna
communicate to you around this, so for now we're just gonna keep it simple
and do the basic integration.
So we're going to leave that off.
We've talked about our sales taxes and we'll come--
come back to that when we have finished the rest of these.
Great.
And awesome, so here's our default sales account now.
This is the lo-- if you click on this you should find some familiar faces
these would be the revenue and current account, but
the revenue accounts, the ones that we're interested in
Vend will use to allocate your daily sales inside your Xero.
So this is the default account, we're able to override this on the product label,
so if you wanted to have shoe revenue to go to shoe revenue and
shirt revenue to go to shirt revenue you'll do that on the product label,
but if there is a product that doesn't have a specific income account associated with it
then this where is it's gonna send that income. So in this example
I wanna select direct sales.
Great, now there's a bit of a guide here prepared for you.
So default sales account just--
outlines what kind of in brackets here against each of these.
Gives you the options of the type of the accounts you can have.
Of course we're just in the easy ones now, but you'll find that eventually
we're gonna get to some that we might have in our Xero.
Scrolling down, inventory orders and account sales.
This is where we're placing orders with our supplier.
Correction.
Account Sales and inventory orders.
So 'send invoices as' now, at the end of each day, when Vend conducts your daily
reach for closure and bundles all that data and sends it to your Xero
we want that to arrive as approved.
Now, if you send that as a draft, what ends up happening is that
when we receive our takings overnight now, cash banking, that sort of thing.
We can reconcile that with the draft transaction, right?
So we need to set them through as approved transactions
To make sure that we reconcile them properly
or the person does our bank rank does it properly or has the transactions there to select.
Make sure that says approved.
And the purchases, this is the account-- we got a bit of a guide here.
Our purchases. This is the default account
where we see our accounts payables, so if you got it like a purchases account
or cost consult account or something to that effect, this is what it should be.
Typically that would be a direct cost, you can have other options there,
but normally I'd see that as a direct cost.
And I can't type accounts so if we scroll our way down
we should have a direct cost account there.
Now if you don't have a direct cost account, we're going to go and set one up
and I've got a helpful hint for you and--
That I'll tell you about in a moment.
So, inside your Xero or talk to your Xero administrator and go set up that direct cost account
to fill in this field.
If you need to stop and do that now, go and do that now.
And scroll to the bottom and click 'reload accounts' and will just
give you an opportunity to select your
It will then reload the list of accounts and then you can select your correct account.
Excellent. Now, invoice payment date.
If you provide goods on account, in here you will find your
paid default payment terms.
When we provide goods on account you might have some default terms
and when we make a sale in Vend
that is a on account sale, where somebody is gonna be paying us later
that transaction is going to go through our accounts receivable, okay? It's a separate
accounts transactions so we can make sure we collect those funds from that customer.
Now, your options are to make seen that through to your accounts receivable and make sure
with the due date of today or day that it was incurred, or
any of the payment terms you have set up in your Xero.
So here I've got 'Due on the 7th day' that's my standard payment terms,
so I'm gonna make sure that any on account sales are I make up on Vend
arrive on my Xero with the default plus 7th day payment and due date.
So that's what's happening there, so select down
if in doubt, select the payment term that is most commonly used by you
Great.
Okay, now we're getting into the--
the-- we're gonna start getting into some transactions or some accounts
that we might not have in our Xero.
So for our account payments you're gonna notice
each of your different payment types.
I have cash and credit card but you might have multiple.
For this we are gonna select the main bank account
into which we receive this balance of cash.
I always bank my cash into my operating account
and my EFTPOS credit card. My EFTPOS credit card merchant.
And facility is connected to my operating account as well,
so very frequently those will all be the same accounts
regardless of how many different bank accounts you have.
Made a note of it
in here,
under payment types, for each payment type.
Very often those will be the same bank accounts.
Cool. Now we're getting into the more complex accounts.
So some of these transactions are going to be infrequent,
but Vend still needs to happen in order to...
connect to your Xero.
You're unlikely to have a refund account in your chart of accounts
so what I've prepared for you underneath this video,
if you're using the standard Xero chart of accounts,
then I have prepared for you an import file that you can import into your Xero
and it just has the missing accounts, essentially, that you are going to need.
It looks a little bit like this.
So if know that you are using a default chart of accounts and if you are not sure
ask your accounts administrator.
You can just import this file into your Xero and it's gonna load you up
exactly the settings that you need for each of the different accounts
that we're going to be configuring today.
Gonna do that now but otherwise open up this file and you might need to change this codes here,
but what is important are a few of this columns, what you call them not so important,
but the type is very important because it's determined by the drop down list;
the tax code, make sure you consult somebody who knows
about how to set that and, finally, enable payments.
Some of these we need payments enabled, some of them we don't.
So those are the three ones that you wanna make sure you get correct,
but these ones, these numbers here, they can be any number that fit
with your chart of accounts.
Feel free to edit those.
And I also recommend to stick with that I've provided here for the names
if you are at all uncertain.
Stick with the names we've chosen here, but you're able to edit those.
Just these yellow ones. Keep them exactly as I have them here.
Great. So getting back to--
Once you have imported that file into your Xero
here's a bit of a discussion here if you'd like to create them one by one.
Here's a bit of a guide for each different account and what
kind of account it needs to be, what it does, and
what you need to do when you import it. So make sure it says enable payments,
for example.
Once you imported that file what you need to do is to come and reload these accounts again.
This is trickiest bit of the Vend and Xero integration
is making sure you have all the accounts available
and then have the appropriate settings
to make sure that they're available on the drop down list
and that it's gonna work when we go transact with it.
One of the common faults I see there is not having the correct tax settings 196 00:10:45,082 --> 00:10:48,408 or enable payments, not having enable payments.
and turn on for that account.
It's gonna close your earnings when you try to send your transactions to your Xero.
So now that you've reloaded your account, what we're going to do is
fill out the rest of these fields.
So for our refund account, what we should now have in here,
is a refund account store refunds, like so.
Yours might look a little different, have a different number
but should have the same name.
Rounding errors
If I scroll down here I should have a expense in here.
Cool. Rounding errors, there we go.
Cash rounding and expenses or sort of thing.
but I'm gonna call that--
Rounding errors
Yeah, let's just check my guide on cash rounding expense.
Yeah we use the same location.
Here we go, cool.
Default discount account, now I've got a few things to say about this one.
You can include this-- some people include this as an expense type
transaction. What this does is, when we provide discounts to our customers,
we're gonna put that to a separate location to where we put our revenue.
Often people bundle in discounts they provide just enter they revenue account
and you can't see the Xero from that point
and easily what proportion of those sales would discount okay?
What your retail did it versus what you had to discount to that
in order to sell that item.
What I'm suggesting, what I do suggest, is that you break that up
and that you send this to a different location, either some sort of marketing
or discount expense
account.
Or like I've done here it's actually a negative revenue account.
So breaks all the rules but it's great because it's actually the same information
just displayed a bit differently, so that you can see--
Oh, here's our direct sales, less discounts provided
you can watch the value of those discount change over time.
You're always able to get that information out of Vend anyway,
but this is just making it a bit more apparent in your Xero
so that when you're sitting down with your accountant, you can have more meaningful conversations.
Awesome. Store credit liability, so there's a bit of a blur with that in the guide
But when it's used and what it's for, select that from your drop down list.
If it's now available then come back to your import file
or go an manually add that to your Xero.
And store credit expense
Excellent. If you are at all uncertain about how to add
an account to Xero then we've got a lot of guides or go to a Xero administrator
course that you can purchase, but otherwise
simply in settings, chart of accounts, and you're going to click add chart of accounts, okay?
Just a quick overview there.
Last of the setting that we're gonna set up for now.
I have a till payment discrepancies and so that will be in here as a expense.
There we go, till payment discrepancies.
Petty cash, where do we put that? Petty cash expense
Cash in and out we're gonna put that to a cash clearing account.
That's when we manually add, manually remove cash that's not petty cash.
And cash float.
Right, so if are at all confused about what, how these interact,
it's in the guide and you'll definitely see it as we start to transact inside your Vend.
For now just assure that you have these accounts in your Xero
so that we can complete this whole screen here.
Now that we've done all the hard part, we're gonna come back to the easy bits
which is just our taxes settings again.
And because we configured this earlier this can be really easy.
Awesome. What you'll find now is we got a beautifully configured
Xero, Vend and Xero integration page.
Once I click save we should be good to go.
My Vend and Xero are happily connected. Uh, hold on.
Corrections.
This sometimes occurs.
Inside your Account for Payments if you have edited a payment type accidently and
removed it, it will actually set here and it will still want a setting.
So, you'll notice here I'm not using Smartpay or this account type at the moment
So it's still needs to be completed somewhere, choose an operating account.
and let's hide that again.
Nothing occurs there because it's not gonna be available to use anyway.
So once you're done there, click save.
There we go, cool.
I just forgot to say that.
Alright, so now we're good to go.
So that was how you successfully connect your Vend and Xero,
the trickiest part of that was ensuring you have the correct chart of accounts
loaded into your Xero before you go to do your Vend integration.
I'm providing you a CSV that you might need to update the numbers for,
but other than that it should be available to import into your chart of accounts in your Xero.
Once you've pulled those accounts through and you've clicked reload accounts,
it should just be a matter of picking the correct account from the drop down fields.
Now I've wrote you a guide that should be invaluable to you when you're
unsure of which account to select, or why you're selecting these accounts.
Hope you found that worthwhile and I'll see you in the next session.