Last updated 03/01/2019
This article is written for those that will use the Periodic method of inventory accounting. For information about this, or if you are unsure of which method you use, please see Perpetual Method and Periodic Method.
Before starting the configuration process, you must have done the following:
Once the above has been confirmed, navigate to the settings page to configure Xero:
Once you have finished, click Finish.
The first step is to decide how your integration operates.
Bank Account Currency
The home/base currency in Cin7 must match the home currency in Xero. Check your home currency appears, and is the same as in Xero.
If you buy/sell in multiple currencies, you will need to select Yes. You must have the correct Xero pricing plan to add multi-currency.
For more information see Multi-Currency with Cin7 and Xero.
Is mainly B2B?
If a majority of your sales are to other businesses, choose Yes.
Update Freight, Discount and Surcharge Tax Codes
Merge Sales Order Product Lines into One Line
If you are likely to have a high volume of transactions pushing to Xero each month, you may wish to combine your line items into one to keep within Xero's data limits.
To enable this, choose Yes.
You can change this setting at a later date.
Update COGS for Number of Past Months
How many months would you like to keep COGS calculations open in Cin7 for reimport should the value change? For new accounts, choose the default setting of 1 month.
Default accounts are the general ledger (GL) accounts in Xero that Cin7 transactions are sent to, unless otherwise specified by an 'alternative GL account'.
For the periodic method you will need:
If there is more than one relevant account you could use, it makes sense to make the default account the account to which a majority of transactions are sent.
In the form in this section you decide how Cin7 should code transactions. You should read the descriptions below, then enter the relevant account numbers into the blank fields.
|Account Name||Account Code||Account Type||Appears in Xero||Used for|
|Stock On Hand*||Xero Account Number||Expense||P&L||The Purchases account to which Cin7 sends transactions.|
|Sales||Xero Account Number||Revenue||P&L||The primary Sales account that is used in Xero.|
|Surcharge||Xero Account Number||Revenue||P&L||If you wish to split surcharges - such as credit card fees - into a separate account. This is commonly the same as your Sales account above.|
|FreightSales||Xero Account Number||Revenue||P&L||If you wish to split freight sales into a separate account.** This is commonly just the same as your Sales account above.|
|COGS||Leave blank||Direct Costs||P&L||Leave this line blank if you are using Periodic.|
|PurchaseDirectCost||Xero Account Number||Expense||P&L||This must be the same account that is used for Stock On Hand. This informs the system that you are using the periodic method.|
|Adjustments||Leave Blank||Overhead||P&L||Leave this line blank if you are using Periodic.|
* Though the system field is called Stock on Hand, this will be a Stock Purchases account in Xero.
** Freight sales constitute the revenue you receive from your customers when you charge them for additional shipping fees, not the cost you pay couriers for freight.
You may not want all your transactions to go to the same default account each time. For accounting reasons it may be desirable to have - for instance - wholesale transactions go to a wholesale GL Account, and retail sales go to your default GL account.
As stated above, it makes sense to set your default account as the account to which a majority of your transactions should go. Use the Alternative GL Accounts for exceptions to the default.
For more information see Setting up Alternative GL Accounts.
To create Tax Rates in Cin7, simply download your Tax Rates from Xero. To do this:
Although it is possible to manually create or update Tax Rates in Cin7, we recommend creating these Tax Rates first in Xero - to ensure they are set up correctly - then redownloading them from Xero.