Finance and Accounting · ERP integration

Xero ERP integration

Xero integration with your ERP, so operations and accounts work from the same numbers.
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Xero and your ERP

Many Australian businesses keep Xero as their ledger while an ERP runs jobs, stock or orders. SyncBricks designs and builds Xero ERP integrations with ERPNext, Microsoft Dynamics 365 Business Central, NetSuite and other systems, deciding which system owns each record and adding the checks that keep both sides reconciled.

Xero is a cloud accounting platform widely used by Australian small and mid-sized businesses and their accountants. It handles invoicing, bills, bank reconciliation, GST and BAS, and payroll. Its API covers contacts, invoices, bills, payments, credit notes, manual journals and tracking categories, which makes it a practical ledger to sit beside an ERP that handles operational work such as stock, production, projects or orders.

Why integrate Xero with your ERP

When an ERP and Xero run side by side without a proper integration, someone ends up re-keying invoices, matching payments by hand and chasing differences at month end. A designed integration removes that double entry, but only if it is clear which system owns customers, items, invoices and payments, and what happens when a sync fails. That design work, done as part of mapping your finance process, is where most of the value sits.

The design work sits inside our process mapping and Xero integration services: agree which system owns each record first, then build.

Integration patterns we build

ERP sales invoices to Xero

Invoices raised in the ERP are posted to Xero with the right account codes, GST codes and tracking categories. Credit notes and voids follow the same path so the two never drift apart.

Supplier bills and payments

Approved purchase invoices from the ERP become Xero bills. Payments made in Xero are written back to the ERP so purchasing and job costing see what has been paid.

Summary journals instead of every transaction

Where volume is high, such as ecommerce or stock movements, the ERP posts daily or monthly summary journals to Xero instead of every line, keeping Xero clean while the detail stays in the ERP.

Customer and supplier sync

Contacts are created in one system and copied to the other, with matching rules on ABN or email so duplicates are flagged for review rather than created.

Moving from Xero to a full ERP

For businesses replacing Xero, we migrate opening balances, open invoices and bills, and history needed for reporting, then run a parallel period so balances can be checked before cutover.

How data moves

Events that start a sync

  • Sales invoice submitted in the ERP
  • Purchase invoice approved in the ERP
  • Payment reconciled in Xero
  • Credit note or void in either system
  • New customer or supplier created
  • Scheduled daily or month end summary run

Records created or updated

  • Create or update contacts in Xero
  • Create invoices, bills and credit notes
  • Post manual journals with tracking categories
  • Write payment status back to the ERP
  • Attach source documents to Xero records
  • Log exceptions to a reconciliation report

Who asks us for Xero integration

  • Builders running job costing in an ERP while the accountant works in Xero.
  • Distributors whose stock and orders live in an ERP with Xero as the ledger.
  • Groups keeping Xero in each entity with a separate system for consolidation.
  • Businesses moving off Xero to ERPNext or Business Central and needing a clean migration.

Access, credentials and audit trail

Xero connections use OAuth 2.0 with access limited to the organisation and scopes the integration needs. Credentials are stored in a secrets store, not in scripts or spreadsheets. Every record the integration creates or changes is logged with its source reference, so finance can trace any Xero entry back to the ERP document it came from.

FAQ

Xero integration questions

Should Xero or the ERP be the source of truth?

Usually the ERP owns operational records such as orders, stock and job costs, and Xero owns the bank and the ledger used for BAS. Customers and suppliers can live in either, as long as one is chosen and the other follows. We set this per record type during process mapping and write it down, because unclear ownership is the most common cause of integration problems.

One-way or two-way sync?

Most records only need to flow one way, which is simpler and easier to reconcile. Payments are the common exception, because they are recorded in Xero but needed in the ERP. Full two-way sync of the same record is possible but adds conflict handling, so we only use it where there is a real need.

What happens when a sync fails?

Failed records are held with the error message rather than skipped silently, and a summary goes to the person responsible each day. Common causes are a missing account code, a closed period or a changed contact. A reconciliation report compares totals between the ERP and Xero so differences are found well before month end.

Can you handle BAS preparation?

The integration makes sure GST codes are applied correctly on every invoice and bill that reaches Xero, so BAS figures come from clean data. Preparing and lodging the BAS remains with your bookkeeper, accountant or tax agent.

Related

Planning a Xero integration?

Tell us which systems you run and where data is being re-keyed. We will tell you plainly what an integration would involve.

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