Step 3 - Configure Magento
1. Log into your Magento store backend. Go to Stores > Configuration > Fooman Connect
2. Set up the ‘Xero - General’ fields shown below, then click ‘Save Config’:
Enabled (v1.0+)
Select “Yes” to enable Fooman Connect.
3. Magento will now connect to Xero to retrieve your organisation's information like account codes and tax rates. Once your information has been retrieved from Xero, configure the remaining fields in the backend, and click save configuration.
Xero Version (v1.0+)
Select the Xero version you are using from the drop down list.
Use Xero Numbers (v1.0+)
When set to "Yes", orders/credit memos exported to Xero will use the Xero assigned number rather than the Magento assigned number.
Prefer Company as Contact (v1.0+)
When set to "Yes" and the billing address contains a company this will be used as the contact name in Xero instead of First Name + Last Name of the customer.
Transfer Currency (v1.0+)
Choose to export orders/credit memos in store base currency or order currency.
Tracking (v1.0+)
Use this optional setting if you already use tracking categories in Xero and want to track your online sales channel. Choose a tracking option to record online transactions exported to Xero.
Xero - Account Mapping
Sales Account (v1.0+)
Select the Xero account where you want to record sales (and any refunds). This setting applies on a per store level.
Shipping Account (v1.0+)
Select the Xero account where you want to record shipping.
Refund Adjustment Account (v1.0+)
Select the Xero account where you want to record refund adjustments made on credit memos in Magento. Note this only covers the adjustment portion of the refund - the refunded item amount is credited against the Sales Account.
FPT Account (v7.0.3+)
Select the Xero account where you want to record fixed product taxes.
Surcharge Account (v1.1.0+)
This setting is only available if you are also using the Fooman Surcharge extension. Select the Xero account where you want to record surcharges.
Rounding Account (v1.0+)
Select the Xero account where you want to record rounding amounts.
Shipping is an Expense Account (v1.0+)
When set to “Yes”, shipping costs paid by the customer will be classified as an expense in Xero, rather than as a sale.
Xero - Tax Settings
Tax Calculation (v1.0+)
Choose your preferred option for calculating tax:
- Magento Re-calculated = attempt to bridge the gap by creating rounding entries if Xero and Magento do not agree on the calculation (the default and best option for most users)
- Magento Merged = Individual Line Items are merged into one line for each tax rate
- Xero Re-calculated = let Xero recalculate completely based on the line total, could change qty to 1 if unit amounts with more than 3 digits can't be aligned
- Tax as separate line item = Individual line items in Xero no longer show a tax rate, instead a separate line item with the tax amounts for each tax percentage is added
Why do I need to choose this? Unfortunately Magento and Xero do not always agree on how to calculate taxes. Differences in the 2 systems exist in tax, rounding, bugs, etc, which can occasionally cause Xero to reject any data which does not match its expectations.
Default Tax Rate for None Taxed Items (v1.0+)
Select the tax rate to use when the item has no other tax rule applied and the tax amount is zero.
Differentiate EU 0% tax rates (v7.1.2+)
If you require a different zero percent tax rate for countries inside the EU set this to Yes. The list of countries considered in the EU is configured in General > Country Options > European Union Countries)
Default Tax Rate for None Taxed Items (inside EU) (v7.1.2+)
Select the tax rate to use when the item has no other tax rule applied and the tax amount is zero and the billing address country is inside the EU.
Tax Rate for None Taxed Items (Expenses) (v1.0+)
This setting is for expense items only. Select the tax rate to use when the expense item has no other tax rule applied and the tax amount is zero.
Backup Shipping Tax Rate (v1.0+)
This rate will only be used if Magento did not store a shipping tax rate and the tax amount is not zero OR the shipping account is an expense account.
Choose your shipping tax rate.
If you select “Use Item’s Tax Rate”, the shipping tax rate will be the same as the tax rate of items included in the order. If your orders contain multiple products with different tax categories, we don’t recommend using this option.
Surcharge Tax Rate (v6.1.0+)
Choose the Xero tax rate that is applicable to surcharges.
Surcharge Tax Rate (Zero) (v6.1.0+)
Choose the Xero tax rate that is applicable to non taxed surcharges.
Xero - Inventory Settings
Use Xero Items (v8.9.3+)
This setting determines if invoices created in Xero are mapped to Xero's items. The options are:
- Use item codes and automatically create in Xero. (the default)The Magento SKU of the ordered item is used as item code for the Xero invoice (needs to be less than 30 characters due to Xero maximum length). The item will get created in Xero automatically during the export of the order.
- Use item codes but don't automatically create in Xero.The Magento SKU of the ordered item is used as item code for the Xero invoice (needs to be less than 30 characters due to Xero maximum length). The item will not get created in Xero automatically during the export of the order. If the item does not exist the export will fail.
- Don't use item codes.The invoice in Xero gets created without the use of item codes. The Sku will appear alongside the item name in the description field. Please note that this option will mean the Sales By Item report in Xero will not show these sales. Additionally tracked item functionality in Xero will not update stock quantities.
Use Item Code With Shipping (v8.5.0+)
This setting affects what item code is sent to Xero for the line item describing shipping. When using Yes - Shipping method the shipping method's code will be used. This could for example be flatrate_flatrate or matrixrates_matrixrates_1299 allowing you to track the use of all your different shipping methods in Xero. When using No Item Code this field remains empty. When using "Yes - as entered below" the value from the setting Fixed Shipping Item Code will be sent across.
Create Tracked Items in Xero (v8.4.0+)
When Fooman Connect encounters a SKU that is not yet in Xero the integration will create this item in Xero. With this setting set to Yes the new item will get created as a tracked item.
Please note that Xero will check available stock quantities before an approved invoice can be created for a tracked item. To increase the available quantity you would first need to create a bill in Xero that purchases the item, see Xero's documentation for inventory.
Inventory Asset Account Code (v8.4.0+)
Used for tracked inventory items. Select the inventory asset account to be used for new items created by Fooman Connect.
Cost of Goods Sold Account (v8.4.0+)
Used for tracked inventory items. Select the account to be used in Xero for Cost of Goods Sold.
Fixed Shipping Item Code (v8.5.0+)
Used when Use Item Code with Shipping is set to "Yes - as entered below"
Export Mode (v1.0+)
The integration can either work by exporting Magento orders to Xero invoices (useful if Magento does not create the invoices straight away and with delayed payments) or by exporting Magento invoices to Xero invoices.
Export Orders with Status (v1.0+)
Choose which status/statuses will trigger export to Xero. Different status options are available depending on which export mode you chose (Magento Order to Xero Invoice or Magento Invoice to Xero Invoice).
The first time a new order/invoice reaches this status, it will be exported to Xero. Multiple statuses can be selected, as each one will only be exported once.
Choose the status/statuses that best match the workflow of your payment methods and corresponds to money hitting your Xero accounts. Choosing to export orders with 'complete' status will be sufficient for most store's needs. However, please note that your payment method may use a different workflow to standard Magento so you should consider this. Compare your payment method workflow to standard Magento 2 workflows.
All credit memos are automatically exported when created.
Export Orders with Zero Amounts (v1.0+)
When set to “Yes”, zero amount orders (free products) will also be exported to Xero.
Status in Xero (v1.0+)
The initial status of the invoice when exported to Xero:
- Draft: Invoices need approval in Xero before payments can be reconciled against them (this can be done in bulk). Invoices will appear in Xero under "Draft", and may be deleted if you choose.
- Submitted for Approval: Useful if an approval process in Xero exists
- Approved: Payments can be reconciled with no approval/further action required. Invoices will appear in Xero under "Awaiting Payment", and can only be voided (not deleted).
Create Payment (v5.1.0+)
This setting is only available when "Status in Xero" is set to "Authorised".
When set to “Yes”, a Xero payment into your chosen bank and/or Paypal account (you must select these below) will be automatically created for the full amount of the invoice.
This feature is great to use when the whole Magento invoice amount (e.g. sale worth $49) hits your bank account (e.g. $49 deposited). All that’s left for you to do is to reconcile the bank statement line in Xero.
We don’t recommend using this feature if the Magento invoice amount is different to the sum that actually hits your bank account. In these cases, we recommend reconciling the invoices directly to the bank statement line for the deposit and Xero will automatically create the payment for you. Examples:
- From a $49 sale, only $48.50 is deposited into your bank account after payment processing fees are deducted, or
- The amount paid combined multiple Magento orders - e.g. $196 is deposited covering 4x $49 Magento orders received that day
Bank Account for Payments (v5.1.0+) if using Create Payment feature
If you’ve set “Create Payment” to yes, choose the bank account the money is deposited into for the invoice payments (includes bank deposits and credit card transactions).
Bank Account for Paypal v5.1.0+) if using Create Payment feature
If you’ve set “Create Payment” to yes, choose the Paypal account the money is deposited into for the invoice payments (only use for Paypal transactions).
Start Date (v1.0+)
If you wish to backdate automatic exporting of orders, enter a date in this field. Dates should be entered in UTC (GMT) format. If no date is entered, automatic exporting will commence from the time of the process being set up and will not be backdated.
Show Xero Payments on View Page (v1.0+)
When set to “Yes”, a new box called “Fooman Connect” will be created in each individual order view page in Magento. This will show:
- If the order/credit memo has been exported to Xero
- If and on which date payment has been received (when the payment has been reconciled in Xero)
Start Date (v1.0+)
If you wish to backdate automatic exporting of orders, enter a date in this field. Dates should be entered in UTC (GMT) format. If no date is entered, automatic exporting will commence from the time of the process being set up and will not be backdated.
Credit Note Prefix (v1.0+)
Enter your chosen prefix to differentiate credit memo numbers from order numbers. While these numbers are the same in Magento, Xero requires these numbers to be unique.
Status in Xero (v1.0+)
The initial status of the credit memo when exported to Xero:
- Draft: Credit memos need approval in Xero before refunds can be reconciled against them (this can be done in bulk). Credit memos will appear in Xero under "Draft" and may be deleted if you choose.
- Authorised: Payments can be reconciled with no approval/further action required. Credit memos will appear in Xero under "Awaiting Payment", and can only be voided (not deleted).
Create Cash Refund (v5.1+)
This setting is only available when "Status in Xero" is set to "Authorised".
When set to “Yes”, a Xero payment from your chosen bank and/or Paypal account (you must select these below) will be automatically created for the full amount of the credit memo.
This feature is great to use when the whole Magento credit memo amount (e.g. sale worth $49) is taken from your bank account. All that’s left for you to do is to reconcile the bank statement line in Xero.
We don’t recommend using this feature if the Magento credit memo amount is different to the sum that actually hits your bank account. In these cases, we recommend reconciling the credit notes directly to the bank statement line for the deposit and Xero will automatically create the payment for you. Examples:
- From a $49 sale, only $48.50 is refunded from your bank account after payment processing fees are deducted, or
- The amount refunded is combined with multiple Magento orders - e.g. $196 is paid covering 4x $49 Magento refunds that day
Bank Account for Cash Refund (v5.1+)
This setting is only available when "Status in Xero" is set to "Authorised" and "Create Cash Refund" is set to Yes.
If you’ve set “Create Cash Refund” to yes, choose the bank account the money is deposited into for the invoice payments (includes bank deposits and credit card transactions).
Bank Account for Paypal Refunds (v5.1+)
This setting is only available when "Status in Xero" is set to "Authorised" and "Create Cash Refund" is set to Yes.
If you’ve set “Create Cash Refund” to yes, choose the Paypal account the money is deposited into for the invoice payments (only use for Paypal transactions).