In this article we look at Modulr Accounts Payable's Xero accounting integration, how it works, what syncs from Xero to Accounts Payable and from Accounts Payable to Xero.
What data does Accounts Payable pull from Xero?
- Purchase Invoices: All details related to your purchase invoices are transferred.
- Purchase Payments: Records of payments made for purchases are synced.
- Purchase Credit Notes: Any credit notes issued against purchases are included.
- Contacts: Your business contacts, including suppliers and customers, are imported.
- Items: Details of items that you buy or sell.
- Chart of Accounts: The entire chart of accounts from Xero is brought into Accounts Payable.
- Tracking Categories: These are used for more detailed reporting and are synced as well.
- Tax Rates: The various tax rates you use are imported to ensure accuracy in financial documents.
The integration can retrieve up to 6 months of historical data from Xero, providing a comprehensive view of your financial data right from the start.
Invoice Approvals
Once integrated, any bills in Xero that are in the "Awaiting Approval" status in Xero will be synced with Accounts Payable. However, these bills will require approval within Accounts Payable before they can move to the "Awaiting Payment" status ready to be paid. This feature ensures that all payments undergo a robust approval process, enhancing financial control.
For businesses that prefer to handle the approval process outside of Accounts Payable, there's an option to disable the "Sync Awaiting Approval" feature. With this setting turned off, Accounts Payable will only pull bills from Xero when they have reached the "Awaiting Payment" status, allowing you to maintain your existing approval workflows outside of Accounts Payable.
What data does Accounts Payable send back to Xero?
Accounts Payable also ensures that your financial records in Xero are kept up-to-date. Here's how data flows back to Xero from Accounts Payable:
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Purchase Orders: Any purchase orders processed through Accounts Payable are synced back to Xero, ensuring that your financial records are up-to-date.
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Purchase Invoices (Bills): If you use Accounts Payable for invoice processing, any new invoices created in Accounts Payable will be synced back to Xero as a bill in the equivalent status. Once bills are processed or paid in Accounts Payable, the details of these bills, including any status updates or modifications, are synced back to Xero.
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Purchase Credit Notes: Similar to invoices, any credit notes generated or processed in Accounts Payable are updated in Xero to reflect accurate financial data.
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Accounts Payable Wallets: Transactions made from Accounts Payable wallets are recorded in Xero, including deposits into and withdrawals from these wallets, ensuring your cash flow records are precise.
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Payment Records: After payments are processed in Accounts Payable, the corresponding records, including payment amounts, dates, and recipient details, are synced back to Xero. This process ensures that your ledgers accurately reflect the latest payment statuses.
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Reconciliation Data: Accounts Payable streamlines the reconciliation process by automatically matching payments made through Accounts Payable to their respective invoices or purchase orders in Xero. This feature extends to reconciling transfers between your bank accounts and Accounts Payable wallets, simplifying the often complex and time-consuming task of month-end closing.
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Supplier Details: Updates to supplier details made within Accounts Payable, such as changes in bank information or contact details, are synced to Xero. This ensures that your supplier records in Xero are always current, reducing the risk of payment errors.