Important information on activating and using Xero Pay Runs
Activating Xero Pay Runs
Important: This guide outlines the steps required to activate Pay Runs if you last connected Xero & Modulr before October 3rd 2023. If you've connected more recently, see how to set up Pay Runs here
Xero Pay Runs requires you to grant Modulr new permissions to process Payroll on your behalf.
For customers who last connected before October 3rd 2023, these permissions haven't been granted, so you need to disconnect and reconnect your integration.
Only complete these steps once you've approved payments (in Modulr) for any Bills that already have a payment assigned (in Xero), and before posting a Xero Payroll.
After reconnecting your integration, Modulr can only process existing Bills that don't have any payments dated before you reconnect.
- Ensure any existing Bills, that require payment through Modulr and have a payment assigned to them, are approved in Modulr before proceeding
New Bills created after your reconnection will process as normal through the integration.
For Payrolls, the integration can only process Payrolls that are 'Posted' (in Xero), after you reconnect your integration.
Steps to activate Pay Runs
- Ensure you have processed any existing bills that require payment through Modulr (See the warning at the top of this guide for more information)
In Modulr
- Navigate to 'Connections' in the side menu
- Click 'Disconnect' on the Xero card
- Once Xero has successfully disconnected, refresh the page
- Follow our 'Connect' guide to reconnect here, and ensure the integration is setup correctly
- Most importantly, ensure:
- you choose the correct Xero organisation when connecting
- you choose the correct Modulr Accounts to be used for payments
Running a Pay Run and Pay Run sync
Our Xero Pay Runs integration is now available in BETA. Existing customers should use this guide to ensure they are ready to use Pay Runs - Activating Xero Pay Runs
To run a Pay Run from Xero with Modulr, follow the steps below. This guide assumes you have:
- A Modulr account set up in Xero
- Have connected Modulr to your Xero access
In your Xero software
- Go to your xero payroll settings
- Select the Modulr Account that will be used for Payroll payments from the 'Bank Account' dropdown
- Save these changes
When you're processing Payroll
- Set up a payrun as you normally would in Xero
- Select 'Post' in Xero to process the payroll
In Modulr
- Sign in to the Modulr Portal and navigate to 'Connections' in the side menu.
Select the 'Settings & Sync' tab:
- Enter the reference relating to the payrun you wish to sync. This reference will appear on your statements, so make sure you pick a reference that is meaningful to you. This reference does not need to correspond to any value in Xero.
- Select 'Sync Payruns'. The sync will begin. You can navigate away while the sync is in progress.
- Once the Sync has completed, the latest sync date and time will show in the 'Settings & Sync' section, and the payments will appear in Pending Payments and Approvals ready to approve.
- If the sync fails, you'll see a message in the Xero connections card. We suggest you try again, or check back in Xero to see if there's any issues.
Things to consider
- Make sure all of your employees either have bank details or are marked as 'manual' payment method before attempting to sync the payrun in Modulr. If an employee is included who has no bank details this will cause the sync to fail.
- Make sure that the account you have selected to connect in Modulr is the same account you have configured in your payroll settings in Xero, otherwise the payruns will not sync.
- If your sync fails unexpectedly, make sure to check your payrun in Xero before trying to sync again - the issue may be caused by a problem with how your payrun is setup.