XERO-&-ERPAG-integration

ERPAG 5.1

XERO & ERPAG integration

xero and erpag

1. Introduction

One of the advantages of cloud applications (and ERPAG) is the ability to easily share data. The technology used is the Application programming interface (API). In general, the end user does not even care what technology is being used, so in this text we will focus on user work when integrating ERPAG and XERO.

Xero is accounting software (or as they say "Beautiful Business & accounting Software"), and through connectivity you get the possibility that your accountant (who, of course, uses Xero) can effectively run your business books.

A list of documents that are posted in Xero through API.

erpag and xero document list

Items list:

erpag and xero items list comparison

Note: Items are searched and compared through "SKU" (https://www.erpag.com/news/what-is-sku)

Customer / Supplier:

erpag and xero business associates comparison

Note: Contacts are searched and compared through "account number" in Xero, or "key" in ERPAG.
_________________________________________________________________________________

2. Connecting ERPAG and XERO

At the time of writing this blog, ERPAG is not listed on the Xero App Marketplace yet (the process is ongoing), but this does not stop us from fully utilizing the integration.

erpag and xero

In the Administration panel, in the Integrations section, we have anoption "Xero".

connect erpag and xero

Click on "Connect to Xero". After that, the page for entering Xero credentials will load.

xero login

After this step, you need to confirm access in the next 30 minutes.


Note: Since ERPAG is not listed on the Xero App Martketplace for now, you will only be allowed access for the next 30 minutes. When the period expires, you can easily extend it by confirming.
_________________________________________________________________________________

3. Products and services - Accounts

On each item (Product or service) it is necessary to set up an Account from Xero.

• Expense account
• Income account
• Inventory asset account (for the product)

You can adjust each item individually, in the "XERO" section:

erpag xero accounts

Or through the bulk action:

erpag xero accounts bulk action

xero accounts bulk action

Also, you can set up the "default value" for newly entered items (or imported ones):

xero accounts default value
_________________________________________________________________________________

4. Settings - Value Added Tax (VAT)

For general information about working with VAT you can find on the following link https://blog.erpag.com/2019/08/the-value-added-tax-vat-in-erpag.html

If your tax system is Valued Added Tax (VAT) you need to "match" tax rates from ERPAG and Xero.

There are two ways to do this:

  • Tax location

tax location

For each tax category you have to select appropriate rate for "Output VAT" and "Input VAT".
  • Tax category

tax category

Here you have to select appropriate tax rate from Xero for each tax location.
_________________________________________________________________________________

5. Settings - Sales Tax (USA)

If you are based in USA, your tax system is a Sales Tax. For more information about working with Sales Tax in ERPAG, you can read on our blog: https://blog.erpag.com/2019/08/setting-up-us-sales-tax.html

Invoiced Sales Order from ERPAG:

erpag invoice

Result in Xero:

xero invoice

Tax Rate from ERPAG will be automatically created in Xero.

xero sales tax

Note: Auto Look Up US tax rates through API keys is not possible.

auto look up sales tax
 _________________________________________________________________________________

6. Synchronization  (ERPAG – XERO)

The part of application that is used to synchronize the data is located in the Accounting section.

erpag xero synchronization

For practical reasons we did not want the data to be sent automatically immediately after the documents were created. It has been shown from practice that the data exchange process can take some time and may be partially inaccessible. For example, we create invoices through bulk action and the API service returns the message "too many requests", because each API service has limits in order to prevent its fall. Accountants also prefer to have the appropriate document type first (supplier invoice first and then our invoice).

We send information at our request. Each document must be selected and then "sent" via bulk action.

syncing documents to xero

send documents to xero

The sent document will get a status "Synchronized" or "Error". Documents with the status "Synchronized" are removed from the list. If we want to show them, we have the option "Show - Synchronized".

syncing error

In front of the "error" status, we have a "info button", where we can review the reason of the error and eventually an option how to resolve the problem.

error description

In our example, click on a "setup" would lead us to set an account for an item.

adding xero accounts to products

With bulk action, we have a few more options.

bulk action option

• Status - On Hold

Selected documents are assigned "ON HOLD" status. They appear in the list but they will not be able to sync until the status changes to "READY".

• Status - Ignore

Documents with this status will disappear from the sync list (they can be seen if  "Show Synchronized" is turned on, and you will not be able to "send" them to XERO. This is done in cases when document does not need to be sent to Xero (e.g. Voided or entered manually).

• Status - Ready

This option returns documents with the status "On Hold" or "Ignored" so that they can be synchronized again.

• Delete / Void (Xero)

This deletes the synchronized documents (if in Xero status is "draft") or voids (if status is "approved") from Xero. After Delete / Void they will get a status "Ready".
_________________________________________________________________________________

7. Supplier Invoice (Purchase order)

In the following topics we will explain how each document is transferred to Xero. Of course, our first document is a Supplier Invoice or Purchase Order.

A Purchase Order layout in ERPAG that has a Supplier Invoice generated.

invoiced purchase order

Bill layout in Xero

bill xero

Each document that is sent to Xero has a "draft" status, so it is necessary for the accountant to do "Approving".

The same principles that apply to Bill, they also apply to Landed Cost and Contractor Bill.

With VAT, we sometimes do not have the right to have Input VAT as Deductible. This VAT value can be allocated as a "landed cost" and subsequently be a cost as a Cost of Goods Sold, or immediately to be a cost like a Tax Expense.

It is necessary to specify "Tax Expenses" in the Xero parameters.

tax expense xero

An example of Deductible: No - Tax expenses.

utility bill tax expense

And a result in Xero:

utility bill xero
_________________________________________________________________________________

8. Invoice (Sales Order)

Only sales orders that have status Invoiced will be offered for synchronization. The list will not include sales orders that have non-packed items for which you already created an invoice. In this case, you must complete the packing.

invoice erpag

And the document in Xero

invoice xero

Note: All prices in ERPAG are Tax Exclusive and they are transferred as such to XERO.

Customer return (and voided) will be "Credit note" in Xero

credit note erpag

And a result in Xero

credit note xero
_________________________________________________________________________________

9. Work Order (Manufacturing)

Xero doesn't have a specific document for work orders, or for manufacturing in general.

work order erpag

In order to achieve adequate accounting and inventory control, two dummy documents will be created during synchronization.

• Dummy invoice - where material is "removed" from inventory and Cost Of Goods Sold (COGS) is formed.

xero dummy invoice

• Dummy bill - where a product is "added" to inventory.

xero dummy bill

You will notice that the value here is "0", in order not to form a payable / receivable account.

When a product 01 is sold, COGS will not be re-formed because its stock price is 0. COGS is already posted through the "dummy invoice".

For more information check out our blog on a similar topic: https://blog.erpag.com/2018/09/quickbooks-online-erpag-manufacturing.html
_________________________________________________________________________________

10. Stock adjustment

These documents are synced in a similar way as Work Orders.

stock adjustment erpag

• "Dummy invoice" - reduces/decreases the amount in stock.

dummy invoice xero

• "Dummy bill" - Increases inventory counts.

dummy bill xero
_________________________________________________________________________________

11. Multi currency

Both in Xero and in ERPAG, working with multi-currency is supported. The currency needs to be opened in ERPAG and Xero

multi currency

xero multi currency

An example of a Sales order with a different currency (USD is a domestic currentcy)

sales order multiple currency erpag

And a result in Xero after synchronization:

sales order with multiple currency xero
_________________________________________________________________________________

2019. ERPAG Inc

0 comments:

Post a Comment