Xero - Integration Setup

Last Updated: Oct 26, 2017 04:59PM PDT
Authorizing Stitch's integration with Xero is easy, but mapping sales and inventory information from Stitch to Xero should be done with guidance from an accountant.

Note: We don't provide guidance on mapping to your unique accounts. Please consult your bookkeeper or accountant.

Authorization

To connect Stitch and Xero, head to Integrations > Add-ons and select Xero:
Add-ons - Xero
From the Xero settings page in Stitch, click Connect.

In the pop-up window, enter your Xero credentials and click Login.

Once logged in to Xero, click Authorize.

After you've authorized the integration, click back into your Xero settings.

Mapping Accounts

Before Stitch can send any information to Xero, you'll need to map each account listed below.

Note: To map to a specific account, it must match the supported account type(s). We don't provide guidance on mapping to your unique accounts. Please consult your bookkeeper or accountant.

Sales Channel Accounts

Stitch maps invoice amounts to the accounts you select here. 
 
Sales Account
Account Type: Sales or Revenue

By default, Stitch sends all product sales amounts to this account. To segment sales by channel, see the Advanced Configuration option.


Sales Tax Liability Account
Account Type: Current Liability

Stitch sends sales tax to Xero as an invoice line item coded to this account.


Shipping and Handling Account
Account Type: Revenue

Stitch sends shipping and handling income to Xero as an invoice line item coded to this account.


Shipping and Handling Tax Liability Account
Account Type: Current Liability

If your integrated sales channel breaks out shipping and handling tax via their API, Stitch imports this as a custom line item labeled Shipping and Handling Tax.

If you create a manual order and need to tax shipping and handling, you'll need to create a custom line item named Shipping and Handling Tax.

Stitch passes this information to Xero as an invoice line item allocated to this account.


Tracking Category

Xero's tracking categories can show you how different areas of your business are performing. You can add up to two tracking categories in Xero, each with as many options as you want.

For example, you may want to track online sales and offline sales as separate categories. Then, you could have online sales split out into options like marketplaces and webstores.


Advanced Configuration

Check this box to map sales accounts specific to each integrated sales channel.
 

Inventory Accounts

On the first of each month at 1 AM Pacific, Stitch sends Xero four inventory account numbers as a manual journal.
 
Inventory Account
Account Type: Current Asset

This is the current value of your inventory. Stitch debits this account with your inventory asset balance.


Cost of Goods Sold Account
Account Type: Direct Costs

Stitch calculates COGS based on average unit cost when an order is closed. We'll sum all COGS values for the month and debit this account.


Stock Adjustment Account
Account Type: Direct Costs

Stitch sums the value of all stock reconciliations for the month and credits this account.


Purchases Account
Account Type: Current Liability

The value of stock received from purchase orders posts as a credit to this account.

For more on this, check out our Xero - Monthly Journal article.
 

Other Accounts

While we offer the option to send payments and expenses to Xero, we recommend choosing Do Not Sync for both of these accounts.
 
Payments Account

You can map Stitch payments to any Xero account where payments are enabled.

Stitch isn't a payment gateway and may not provide a full picture of the payment process (net of fees and other merchant costs). For this reason, we recommend against sending payments to Xero.

​Should you select a payments account, all amounts on invoices that have been marked as paid in Stitch will post as a value in the selected account.

Once a payment has been added to an invoice in Xero, Stitch will no longer be able to push updates to that invoice.


Expenses Account
Account Type: Expense

Rather than sending Stitch expenses to Xero, we recommend entering and managing all expenses directly within Xero. 
 

Default Invoice Status

Select the invoice type that should be created in Xero.
 
Draft

Stitch will send invoices to Xero in draft status. Edits to the invoice in Stitch will pass to Xero while in this status.


Authorized

Stitch will send authorized invoices to Xero. If you've selected a payment account, marking the invoice as paid in Stitch will mark the invoice as paid in Xero.
 

Note: Once an invoice has been marked as paid in Xero, any edits made to the invoice in Stitch will not pass through.

Once you've mapped all accounts, Stitch will begin to sync information to Xero.