Xero accounting integration overview

Data that's pulled from Xero into Accounts Payable

• 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

Approvals and Xero

You can either set up your approvals to happen in Xero or in Modulr AP. Once connected and syncing, any bills in Xero that are in the "Awaiting Approval" status in Xero will be synced with Accounts Payable. 

If you have approvals enabled in Modulr AP, then these bills will require approval within Accounts Payable before they can move to the "Awaiting Payment" status. This feature ensures that all payments undergo a robust approval process, enhancing financial control.

Disabling approval in Modulr AP

For businesses that prefer to handle the approval process outside of Modulr AP, disable the "Sync Awaiting Approval" feature in AP (from the side menu, go to: Company → Settings → Invoice Settings → Sync Awaiting Approval). 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.

Data that Accounts Payable sends 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:

• Purchase Orders: Any purchase orders processed through Accounts Payable are synced back to Xero, ensuring that your financial records are up-to-date.

• 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.

• Purchase Credit Notes: Similar to invoices, any credit notes generated or processed in Accounts Payable are updated in Xero to reflect accurate financial data.

• Accounts: Transactions made from Modulr AP accounts are recorded in Xero, including deposits into and withdrawals from these accounts, ensuring your cash flow records are precise.

• Payment Records: After payments are processed in Modulr AP, 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.

• Reconciliation Data: Modulr AP streamlines the reconciliation process by automatically matching payments made through Modulr AP to their respective invoices or purchase orders in Xero. This feature extends to reconciling transfers between your bank accounts and Modulr AP accounts, simplifying the often complex and time-consuming task of month-end closing.

• Supplier Details: Updates to supplier details made within Modulr AP, 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.