This page explains how to sync your accounting between Alguna and Xero. If you are looking to use Xero to send invoices directly to customers and collect payments, click here. Below is a detailed guide on how to connect Xero to seamlessly synchronizw invoices and payments, manage your chart of accounts, and handle payment reconciliation using Alguna.

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Connecting Xero

To connect your Xero account to Alguna, follow these steps:
  1. Go to the Integration View in Alguna.
  2. Click Connect on the tile with Xero.
  3. Choose the Xero organization you wish to connect to Alguna.
    • If you’re testing in the sandbox environment, we recommend connecting to a Xero Demo Company.
      • Tip: The Xero Demo Company automatically disconnects every 30 days.
  4. Authorize the connection between Xero and Alguna.
  5. Set Alguna as your source of truth for customer and invoice creation.
  6. Optionally, import existing customers from Xero into Alguna (this can be done at a later date as well).
  7. Set up your accounting ledger and payment accounts for proper ledger entry mapping.

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Connection Scope

When connected to Xero, Alguna syncs the following fields to ensure accurate accounting:
  • Accounts:
    • Chart of Accounts: Alguna syncs invoices and payments to the appropriate ledger account in Xero, based on your setup.
  • Customers:
    • Customers created in Alguna are synced to Xero, allowing smooth invoicing and payment management.
  • Items:
    • All line items on invoices, including quantities, pricing, tax rates, and amounts, are synced between Alguna and Xero.
  • Invoices:
    • Issued invoices, including details such as due dates, amounts, and tax breakdowns, are sent to Xero.
  • Payments:
    • Payments made through Alguna are synced to Xero for reconciliation.

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Syncing & Linking Accounts

During the onboarding process, Alguna allows you to import existing customers from Xero into Alguna. This simplifies customer management by keeping records up to date. Once synced, we recommend using Alguna as your source of truth for customer creation. Alguna only manages customers (not suppliers) during syncs with Xero, matching Xero’s contacts feature that covers both customers and suppliers.

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Accounting Sync & Payment Reconciliation

During the Xero setup process, you can decide how you would like invoices to sync with Xero. Alguna provides flexibility with three sync options:
  1. Only When Issued:
    • When an invoice is sent to the customer, Alguna automatically syncs it to Xero as an open invoice.
    • Payment reconciliation occurs outside of Xero, directly with your payment providers.
  2. Only When Paid:
    • Invoices are created in Xero only after they are issued and the payment is collected via Alguna.
    • Xero will not be aware of any open invoices until the payment is processed and synced.
  3. When Issued and Paid:
    • The invoice is synced when it’s issued and again when payment is collected via Alguna, ensuring that both stages are reflected in Xero.

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Details Synced

When Alguna syncs invoices and payments to Xero, the following details are transferred:
Details Synced to XeroDescription
Invoice TypeDefines whether it’s a sales invoice or credit note.
Invoice NumberA unique identifier for the invoice.
StatusIndicates whether the invoice is open, paid, or void.
Currency CodeThe currency used for the invoice.
DateThe date the invoice is issued.
Due DateThe payment due date of the invoice.
Line ItemsAll individual items billed in the invoice, including associated quantities, prices, and tax amounts.
Line Item Code (SKU)A SKU code for each item, which can be customized on a per-customer basis.
Line Item NameThe name of the product or service.
QuantityNumber of units billed.
Price Per UnitUnit price of the item.
Tax AmountThe tax applied to the line item.
Tax TypeSpecifies the type of tax (e.g., GST, VAT, Reverse Charge, etc.).
Associated DiscountsAny discounts applied to the item or total.

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Managing Tax

For taxable customers, Alguna can provide specific tax codes when syncing invoices to Xero. Ensure that tax rates in Alguna match those in Xero to prevent discrepancies.

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Automatic Payment Reconciliation

If payments are collected through Alguna, the reconciliation is automatically synced to Xero. This means that the original payment source and the payment record are matched in both systems, keeping your financials accurate.

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Using Xero for Customer Invoicing

In addition to syncing with Xero for accounting purposes, you can also choose to use Xero to send invoices directly to customers and to collect payments. For more information on using Xero for customer invoicing, click here.