Turbo Inventory offers built-in integration with Xero, a seamless connection between your point of sale solution and accounting software.

By pairing Turbo Inventory and Xero, retailers can forgo laborious manual data entry, with precise accuracy of your data, that goes directly from Turbo Inventory to your Xero account.

Turbo Inventory offers seamless integration with Xero to automatically sync following records:

• Customers profiles
• Sales transactions, payments & Discounts given
• Credit notes, on account sales
• Purchase orders, Supplier profiles
• Gift cards sales & redemptions (with proper liability allocation/reduction in Xero)

Important steps before you begin

Before you start the integration, we strongly recommend you speak to your accountant to discuss the accounts you’d like to post data from Turbo Inentory to Xero. Please ensure that Xero’s Chart of Accounts has all the accounts that you require for mapping, especially in relation to:

• Do you have a refund account already created in Xero?
• Corresponding payment types in Xero
• Payment and liability accounts for gift cards
• Revenue & COGS accounts designation for Inventory & non-inventory items
• Corresponding names for Turbo Inventory payment methods in Xero & related banking accounts

Disclaimer: Throughout this article, we’ve made some suggestion regarding account types selection in Xero’s Chart of Accounts. However, those suggestions are only for tutorial purposes only. We strongly recommend you speak to your accountant to obtain a professional advice before deciding on accounts mapping criteria and selections for your business account.

Activate Turbo Inventory & Xero connection

1. In Turbo Inventory, head over to the navigation and click Apps
2. Scroll down and click Enable Xero
3. You will then be directed to the Login page of Xero
4. Login using your Xero credentials (Note: if you've already logged into your Xero account,Xero will automatically skip this step for you)
5.  If you have more then one organisation, select the correct one and click Allow Access
6. Once your connection to Xero is active, you’ll automatically be redirected to the Xero integration settings screen in Turbo Inventory. You will know the connection was successful as you will see the organisation name in Account Name
7. Click Sync from Xero, this will then copy across
   1. Customers
   2. Suppliers
   3. Chart of Accounts
   4. Tax Rate

Map Xero Accounts

This is where you will map relevant account types in Turbo Inventory to define how your data will be posted to Xero

For example, if you are selling gift cards in Turbo Inventory, by mapping a Xero liability account for it, you will be able to track the increase and decrease in your liability relating to gift cards sales. 

Common Customer Name for Walk-In Sales

Select a common customer name for cash sales. All cash/walk-in sales will be sync’d to Xero under this customer profile. Even though you won’t receive customer information to engage with them further if a generic name is used, you can still identify shopping trends, for all your walk-in customers.

Product Settings

Purchase (COGS) account

This is your default cost of goods sold (COGS) account for inventory products. Your cost-of-goods-sold (COGS) refer to the expenses involved in creating or purchasing the products that your store sells.

PLEASE NOTE: Turbo Inventory also lets you set Category specific Revenue and COGS accounts for each of your product. However, if nothing is specified at a Category level, the above default accounts will be used to post revenue and COGS amounts.

Sales (Revenue) account

Select a default sales/revenue account for your inventory products.

Accounts for Liability & Expense

Credit Note Liability Account

Turbo Inventory lets you create credit notes. Here you can map customer credits to the corresponding liability account in Xero. Whenever store credit is redeemed by a customer, your liability will be reduced in Xero.

Gift Card / Gift Certificate Liability

Using Turbo Inventory’s gift card feature? Gift card sales are different from other products because they do not result in an income, unlike other products. With gift cards, you accept payments in exchange for the promise of providing goods and services later. As such, gift cards are recorded and posted to Xero as a liability when sold. Your liability amounts are reduced when a customer redeems the gift certificate.

Default Vat Settings

You can set Purchase and Sales VAT rates against each individual VAT Rate in Turbo Inventory. If none is assigned then these are the default VAT rates used

Payment Settings

As with VAT Rates and Product Settings, you can enter a default Payment Account that will be used when a Payment type doesn't have a Xero Account Code attach to it