Xero Integration

 

The Zenoti-Xero integration enables you to export your store’s accounting data in Zenoti to your Xero account. The integration automates the following tasks to save your time on data entry, and improve data accuracy:

  • Send your sales invoices to Xero.
  • Send your customer payments to Xero for reconciliation.
  • Sync the inventory balance between Zenoti and Xero in real time.

Step 1: Add Accounts and Tax Rates in Xero

Before you set up the Zenoti-Xero integration, you need to add necessary accounts and tax rates in Xero.

  1. Add Accounts: Each account in your Zenoti application needs to have a matching account in Xero for the integration to work. You can modify the existing accounts or add new matching accounts in Xero under Settings > Chart of Accounts.
  2. Add Tax Rates: Similar to the accounts, the tax rates in Zenoti need to have matching tax rates in Xero to sync data between them. You can add tax rates in Xero from Settings > Tax Rates.

Add Accounts in Xero

The Xero Chart of Accounts is a list of account types that your Xero transactions have to be classified into. Xero provides a list of default accounts after you set up a Xero account. To synchronize the invoices between Zenoti and Xero, each account in Zenoti needs to have a matching account in Xero.

To add new accounts in Xero, follow these steps:

  1. Log in to https://login.xero.com/.
  2. Go to Settings > Chart of Accounts.
  3. Click Add Account.
    addaccountbutton.png
  4. In the Add New Account dialog, enter the following details:
    1. In the Account Type list, select the type of the account you want to add.
      addaccounttype.png
      For example, if you want to add an account for the cash payments received, select the Current asset account type.
      Learn more about Xero Account Types.
    2. In the Code field, enter a unique code for the account. Learn more about Xero Account Codes.
      Learn more about Xero Account Codes.
    3. In the Name field, enter a name for the account. Each account must have a unique name not exceeding 150 characters, including letters and numbers.
    4. In the Description field, enter a description of how this account is used. It is an optional field.
    5. In the Tax list, retain the default tax settings.
      More information on Xero tax types.
    6. To enable the payments to your Xero account, select the Enable payments to this account
    7. Click Save.

For more information, refer to the Xero help on Chart of Accounts: https://help.xero.com/us/Settings_ChartofAccounts

Add Tax Rates in Xero

Xero enables you to add new tax rates that be charged on invoices, bills, and transactions. Similar to the accounts, for each tax rate that you want to send data from Zenoti, you need to have a matching tax rate in Xero.
To add a tax rate in Xero, follow these steps:

  1. Go to Settings > General Settings.
  2. Under the Organization settings section, click Tax Rates.
  3. In the Tax Rate window, click New Tax Rate.
  4. In the Add Tax Rate window, enter the following:
    1. In the Tax Rate Display Name field, enter a name for the Tax Rate.
    2. In the Tax Components section, enter a component name, and the tax percentage for it in the adjacent box.

      Note: The tax rate is made up of single or multiple tax components. Each tax component is a percentage rate that is applied to the item when you apply the tax rate that the component belongs to. Whether a tax rate consists of a single or multiple components, it is the overall percentage rate that is used to calculate the tax, and displayed on the invoice.

    3. If you want to add another tax component, click the Add a Component.

  5. Click Save.

    Note: Customers in some countries can make use of the pre-set tax rates available in Xero.

Step 2: Set Up the Zenoti-Xero Integration

After you create matching accounts and tax rates in Xero, you are ready to turn on the Zenoti-Xero integration. Setting up the integration between the Zenoti and Xero applications involves the following four broader steps:

  • Connect Zenoti to your Xero Account: The first step in turning on the integration is to connect your ManageMyAccount account with Xero. In Zenoti, the synchronization settings need to be configured at a center level, which means if your organization has multiple centers, you need to set up the integration for each center separately.
  • Sync Accounts: Each account in Zenoti needs to be mapped with the corresponding accounts in Xero to which you want to send the sales and purchase information. If you haven’t already created the necessary accounts in the Xero Chart of Accounts, please follow the instructions in the Add Accounts to Xero section above to do so.
  • Sync Tax Rates: Each tax rate in Zenoti needs to be mapped with the corresponding tax rate in Xero. If you haven’t already created the necessary tax rates in the Xero, please follow the instructions in the Add Tax Rates in Xero section above to do so.
  • Sync Items: You need to synchronize all the master data in Zenoti (products, services, packages, and memberships) with Xero. All gift cards and prepaid cards are synced to Xero as two items and not as a separate item for each gift card and prepaid card.

Connect to Xero

To connect your Zenoti application with Xero, follow these steps:

  1. Make sure you are logged in to Zenoti as Admin.
  2. In the Admin Dashboard, click Centers.
  3. On the Manage Centers page, click the name of the center for which you want to set up the integration.

  4. On the Edit Center page, click the Accounting tab.

  5. In the Integration Settings section, enter the following:   

    1. In the Select Integration list, select Xero.
    2. Select the Enable Xero checkbox to activate integration with Xero.
    3. In the Sync start date field, enter a future date from when you want to sync to start.
    4. In the Delay field, enter the number of days an invoice has to wait before it gets synced.
      For example, if the delay is set for four days, then invoices are synced after the business closes on the third day, during the early hours of the fourth day. This setting is useful in organizations where invoices are changed after creation, and avoids the need to sync them twice.
    5. Click Save, and then click Authorize. The Xero login page appears.
    6. Log in to Xero.
    7. Select the Xero organization that matches with your Zenoti account.

The system takes you back to the Integration Settings page in Zenoti, and the name of the organization is displayed in the Xero Org field.

Sync Accounts from Xero

To map accounts between Zenoti and Xero, follow these steps:

  1. On the Integration Settings page, select Accounts from Xero in the Sync list, and click the Orange button next to it.
    The Accounts Mapping section retrieves the Chart of Accounts from Xero and displays it in the Custom Header column.

  2. In the Accounts Mapping section, map the Zenoti headers with the corresponding Xero headers.

Sync Tax Rates from Xero

To map tax rates between Zenoti and Xero, follow these steps:

  1. In the Sync list, select Tax Groups, and then click the orange button next to it. The Tax Groups section retrieves the Tax Rates that have been set up in Xero.
  2. In the Zenoti Tax Group column, select an appropriate value for each Provider Tax Group.

Sync Items to Xero

To sync Zenoti items with Xero, follow these steps:

  1. In the Sync list, select Items to Xero, and then click the orange button next to it.
  2. Click Save.

The items across sales types, including Services, Products, Packages, and Memberships should have a unique code for the items to sync. If any of these items have the same code, the sync doesn't work for the item.

Step 3: Run and Verify the Synchronization

After the integration is configured, the synchronization of invoices begin on the Sync start date you specify in the integration settings. No other action is needed to initiate the synchronization. The data in Zenoti is synchronized with Xero periodically, depending on your setting for the Delay period, typically during the night time. Refer to the field description for the Delay field in the Connect to Xero section in Step 2.

View the Synchronization Status

The data in Zenoti is synchronized every day with Xero, after the business is closed for the day. You can view the synchronization status of the invoices using the Xero Sync Status Report in Zenoti.

To view the synchronization status, follow these steps:

  1. Make sure you are logged in to Zenoti as admin.
  2. In the Admin Dashboard, click Reports, and then click Xero.
  3. To view the synchronization status, in the Select a report list, select Invoices.
  4. In the list next to it, select All, Pending, Success, or the Failed option, depending on which invoices you want to view.
  5. In the time period list, select the time period from the available options.
  6. Click Refresh. The synchronization status report is displayed with the status for each invoice.

Failed Synchronization

If the synchronization fails for an invoice, the Xero Sync Status report displays a log message explaining the reason for the failure. You can manually synchronize the failed records by selecting the checkbox next to the invoice, and then clicking the Re-Sync button at the bottom of the report. You can click the Go to Xero link present against each invoice to check the invoice in Xero. Once you open the invoice in Xero, you can click Go to Zenoti if you need to return to the Invoices report. Clicking the Invoice number and the Guest Name opens the invoice and guest records respectively in Zenoti.

Verify the Synchronized Invoices

After Zenoti sends the invoices to Xero, you can verify the accuracy of the synchronized data by comparing the total amounts listed in the Balance Sheet in Xero with the total amounts listed in the Sales > Invoices report in Zenoti.

When the invoices are sent from Zenoti to Xero:

  • Redemptions of memberships, gift cards, loyalty points, and cashback are added as a negative entry.
  • Refunds and rounding adjustments are listed as separate line items.
  • Tips are not shown as Xero does not support reporting them.

To verify the synchronization of invoices, follow these steps:

  1. Make sure you logged in to Zenoti as admin.
  2. In the Admin Dashboard, click Reports, and then click Sales.
  3. In the Select a Report list, select Invoices in the Printer Friendly section.
  4. In the adjacent field, select the One Month Option or specify another date range.

    Note: Picking the One Month option displays the invoices for a month. If you choose Custom, use the calendar drop downs and pick dates in the From and To fields.

  5. In the adjacent field, select AllClosed, or Open.
  6. Click Refresh.
  7. Log in to Xero and navigate to Reports > Balance Sheet.
  8. Compare the total amounts listed in the Balance Sheet in Xero with the total amounts listed in the Sales > Invoicesreport in Zenoti.

The following is a comparison between the Invoice report in Zenoti and the Balance Sheet in Xero:

  • Redemptions are added as a negative value to Xero because they are counted as discounts. The next section describes how to check redemptions.
  • Net Price column should match with Current Year Earnings.
  • Tax should match with Sales Tax in Liabilities.
  • Cash should match with Payments Received – Cash – Zenoti in Current Assets.
  • Card should match with Payments Received – Credit Card – Zenoti in Current Assets.
  • Others should match with Payments Received - Zenoti in Current Assets.

Check for Redemption of Memberships, Gift Cards, Loyalty Points, and Packages in Xero

Redemption of memberships, gift cards, and packages at the invoice level can be checked in Xero.
To check for redemptions, follow these steps:

  1. Go to Accounts > Sales.
  2. Click the Paid link to view invoices that have been paid.
  3. Click a particular invoice with a redemption. The following is an example invoice with redemption for description.
    1. You can see a Membership Redemption Discount, which is used to record redemptions of free services provided in membership benefits.For example, membership benefits might include three free massages, and when each service is redeemed, it is recorded as a Membership Redemption Discount.
    2. You can see the manual discounts provided on a service and product. In Zenoti, such discounts are provided on the POS by employees who have the relevant permission.
    3. Gift card redemptions are tracked in the Gift Card Redemption account.
    4. Loyalty point redemptions are tracked using the LP Redemption Discount account. A Membership redemption which records discounts provided as membership benefits is also available. For example, a 5 % discount on massages during peak hours and 10% during off peak hours.
    5. Package redemptions are tracked using the Package Redemption account. For example, this is used to record redemptions of package benefits such a services or free products.

To view the how redemptions are tracked in Xero, follow these steps:

  1. Go to Accounts > Inventory.
  2. Search for a particular membership, such as Platinum membership.
  3. Click the membership to open it.
    In the next window, the number of memberships sold and redeemed are listed.

Redemptions of memberships are listed as a negative entry and they are enclosed in brackets. Sales are listed as positive entries. These can then be added to figure out the outstanding balance or liability against a membership. The same procedure can be followed for checking gift cards and packages.

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