A.

) XERO HQ

 Xero HQ user roles

1. Standard User (see clients they have access to, can access Activity feed, Explorer,
Ask and limited features of Practice Tab)
2. Administrator (same with Standard user but with extra permissions, adding clients,
managing staff permissions, editing practice listing and managing connected apps)
3. Master Administrator (person who set up Xero Practice; can access the practice
organization and edit report templates by default)

 2 step authentication (2SA)

 Google Authenticator

 Navigation
1. Xero HQ Activity (day to day tasks for clients; alerts and due dates for upcoming
work)
2. Clients (see a list of clients you have access to; filter by business structure, industry
etc.)
3. Explorer (gather insights about your Xero clients; see their connected apps to Xero,
industries they work in and banks they use)
4. Reports (practice-wide customized report templates; needs special permission for
this tab)
5. Ask (compile custom queries to send to your clients, who can log in to a secure
environment and reply directly to you; way to collect and manage client information
and documents all in one place)
6. Staff (admin users can see list of practice staff certifications, have enabled 2SA,
admin users can also give staff access to view or edit client records in Xero HQ and
choose their level of access to Xero orgs)
7. Practice (keep track of your practice’s partners status using status bar; Access
resources to help your practice grow in the Partner Toolkit and use the Demo
Company to practice your Xero skills)

 Public profile
 Switch your public profile to be listed in the Xero Advisor Directory and participate in
the Xero Community; allows other Xero users to see your level of Xero knowledge
and business experience
 Xero Community (participate in discussions, ask for advice, share experience and
learn from others
 Advisor Directory (help new clients find your practice, showcase you Xero
achievements as well as experience with client industries and connected apps, make
sure your staff have a public profile to appear in practice listing; this is a benefit of
the Partner Program)
 Client Support (if you have Adviser access and Provide Support permission your
name and number will appear under the help icon; make sure you enter at least
Introduction

 Access support (discover online support including Xero Central, Xero support team and
accessing partner’s resources)
1. Access help (question mark)
2. Xero Central (first place to look for help and training, support articles, ask question
or searching by topic, browse library of courses, webinars and events, click question
mark and select Help Centre)
3. Partner resources (access setup guides and other resources to keep your practice
running smoothly click question mark and select Xero partner resources)
4. Contact support (get help from your support team, click question mark and select
Contact Xero support)

 Keep up to date (view online resources)

1. Xero blog (xero.com/blog daily articles on Xero news, industry announcements, and
small business economy, use magnifying glass to search particular topic)
2. Xero releases (central.xero.com, changes to the product and new features)
3. Xero status (status.xero.com learn about known Xero outages, features that are
affected and when the issue will be resolved)
 checkup.xero.com (to see if issue is related to your web browser or security settings)

 Practice overview (track partner status and access partner benefits)

 Xero HQ Practice Tab (standard users have limited access to this tab,can see
practice’s partner status, access the partner resources; administrator and master
administrator users have full access)
 Partner level summary (track partner status in Partner program using progress bar,
view partner points and points needed to reach next level)
 Partner toolkit (view resources to help grow your business, ex. Marketing material,
tools to host a client event)
 Demo company (use to practice Xero skills)

Manage activities

 Activity Feed (organize and resolve activity feed alerts); alerts in the activity feed (alerts
to upcoming tasks, when they’re due and what you need to do next)
1. Ask (when client has submitted answers to query)
2. Bank (when the statement balance doesn’t match the balance in Xero)
3. Payroll (pay run due alerts, when there’s an outstanding pay run for a past period)
4. Workpapers (generated by the same notifications found in settings tab in
workpapers, filter by sub-type, to prioritise your workload)
5. Sales tax (when sales tax report is due, specific to client’s country; GST, VAT, Sales
tax)
6. Connected apps (generate alert that’s specific to that app)
 Navigate the Activity feed
1. Filter (filter by specific alert type, including alerts that are overdue)
2. Search (to quickly find a specific client or alert)
3. Sort (sort alerts by work you’re looking to do, action those based on date or client

 Interact with alerts

1. Click Alert action (to go directly to the organization, or ask in Xero HQ and resolve
the alert; Xero removes the alert from your activity feed once you’ve resolve it)
2. Click Clients Tab (select client’s name and select activity to view and action alerts for
a single client)

 Customize alerts (to monitor client organizations and prioritize workload)

1. Select settings in Activity feed to create and manage alerts
2. Click Create Rule to set up a Client-specific bank reconciliation alert for an individual
or custom group of clients
3. Start typing to search for and add a client
4. Use Transactions to code (for ex. When a client has a high number of bank
transactions) Use Days since fully reconciled (for ex. When a client doesn’t reconcile
regularly) or set both criteria if relevant for a client
5. Turn on the All-clients bank reconciliation alert and set the criteria for any clients
who don’t have a client specific alert setup. The Client-specific alert will override this
option for the clients specified.

 Turn off alerts

1. Turn off type alerts for this client (hide all alerts of a given type, such as Bank or
workpapers for a selected client)
2. Turn off all type alerts (hide all alerts of a given type, such as bank or workpapers for
all clients)
3. Turn off all alerts for this client (hide all alerts of any type for the selected client)
4. Delete this alert (permanently remove this alert from your activity feed, this alert
can’t be restored)

 Client Organizations (add and access client org)

 Add all your clients (even not using Xero), to your client list in Xero HQ, and manage
all practice clients in one place. You must have Administrator or Master
Administrator user role to add client in Xero HQ and connect them to Xero.
1. Click New Client on the Clients tab
2. Select Business structure, enter contact details and click Create. Click Create and
create another to refresh the form and add another new client.
3. Click the overflow menu and select Connect to Xero to create a Xero organization for
the client.
 Give staff access to a client (Admin or Master admin can provide you with access to
an organization when you begin working on a client.
 1. Click the overflow menu for the client and select Staff Access
2. Select Add staff to add more. You can manage user permissions in bulk or
individually for this client.
3. Click the overflow menu and select Edit permissions or Remove staff from client if
they no longer need access. (If the practice doesn't own the subscription for the
organisation, the Administrator or Master Administrator will require Manage users
access to edit staff permissions.)
 Add an invited organizations (if a client invites you into their Xero org, add them to
the practice so they appear in your client list, this creates a full client record so you
can manage notes, staff and client relationships from Xero HQ.
1. Select Non-practice clients from the Clients Tab
2. To add multiple clients to the practice at once, select the Individual Checkboxes or
select all and Change to practice. Select the overflow menu and click Change to
practice client to add one client.
3. Select Change to practice client. This won’t affect who owns and pays for the
subscription.
 Navigate between oragnizations (Begin typing the file name in the search box from
the Xero HQ drop down menu to easily navigate between organisations)

 Client Information
 View and edit client details (Enter the latest client information in Xero HQ to make
sure practice staff are always kept up to date. Standard users have either Can view
or Can edit permission. Administrator and Master administrator users can view and
edit the details for all clients by default. Click on a client’s name from the Clients tab
to view their information)
1. Notes (Add notes and communication for a client. You can add tags[1] to categorise
and filter notes. Select the suggested tags already there, or create a custom tag.
Anyone can tag a note, but you must have Master Administrator or Administrator
permissions to create tags.)
2. Activity (See activity feed alerts for a specific client, instead of filtering by alert-type
on the Activity tab. Click View[1] on the alert and take action to resolve it.)
3. Information (Find client information, such as their office address, business structure
and industry. Click the overflow menu[1] and select Edit details to update.)
 Client relationships (If you have edit permissions, you can create client relationships
to keep track of the people you want to send queries to. For example, add their
staff, consultants, lawyers, or shareholders.)
1. Select the Relationships tab and click Add a contact.
2. Enter the contact details. Choose an existing contact, which includes practice clients
with a business structure of individual or sole trader. Or, enter the details for a new
contact, then click Create
3. Click the contact name or open the overflow menu and select Edit contact details.
Select Remove this contact to remove the relationship. Xero won’t delete the
contact if you remove it from a client relationship, even if they're not linked to other
clients.
  Microsoft outlook add-in (If you use Microsoft Outlook, install the Xero HQ add-in so
you can save email messages as your client notes. Save attachments with notes and
apply tags to keep all communication in one place.)

 Explorer (Provide insights into the industries, apps and banks your clients use with
Explorer in Xero HQ.)
 The Explorer Tab (View insights into your client base, using Explorer. You’ll see a
breakdown of your clients by Apps, Industry and Banks. These insights enable you to
advise clients on what works well for similar clients.
1. Apps (See a breakdown of the apps your clients use and how many use each app.
The apps your clients use will show on your Advisor Directory listing, if it’s activated.)
2. Industry (See a breakdown of the industries your clients are in and how many are in
each. If your Advisor Directory listing is activated, your experience with your clients’
industries will show on your listing.)
3. Banks (See a breakdown of who your clients bank with, and how many are with each
bank.)
 Add client industries (Add industries to your clients in Xero HQ. Use the insights to
focus training for staff, identify marketing opportunities and showcase your
experience in your Advisor Directory listing, if activated. Potential clients can search
for a new accountant or bookkeeper by industry in the Xero Advisor Directory.)
1. Select the Explorer tab and find your client. Or select X have no industry code for a
list of your HQ clients with no industry added.
2. Click Add an industry or click the overflow menu and select Edit industry
3. Start typing to search for related industries.
4. Select an industry, click Save

 Create Queries (Create and send queries using Ask in Xero HQ, including query
templates.)
Easily create queries in Ask to get the information and documents you need from your
clients. A query can contain as many different types of questions as you need. Add
multiple sections to group questions together, and attach supporting documents.
1. Go to Ask and click New query
2. Select a template if using one, and enter a query name. Fill in optional fields such as
financial period and due date. The due date will create an alert in the Activity feed if
the client is late with a response. Click Save and Continue
3. Tick the checkbox to select a client contact from your Xero HQ client list, or select
multiple client contacts. Select All clients to send the query to all of your HQ client
contacts. Click Save
4. Name the section and enter your question. Use the file icon to attach any supporting
documents and include a tip to help guide your client’s answer. Select an answer
type from the drop down.
5. Add more questions for this section, or add more sections. Group related questions,
and drag and drop the questions and sections to change their order. Click Send
query
 6. Check the recipients and edit the text the client will receive in the email message, if
necessary. Click Send
7. The contact(s) will receive a link to login to a secure environment and respond to the
query.
 Edit a query
1. Edit details (Click the overflow menu and Edit query details)
2. Edit query (Select the query to change or delete questions and sections. Click Add
questions to include more, then click Resend query.)
3. To remove a query, click the overflow menu and select Delete query
 Common queries (Copy a query to use with another client, create a template to be
used across many clients or send a query to multiple client contacts at the same
time. Templates are a set of commonly-asked questions so you don't have to start
from scratch.
1. Copy a query (Click the overflow menu and select Copy query. Ask creates a copy of
the query with the same questions and sections. Make changes as required before
sending the query to your client.)
2. Create a template (Create templates for standard queries you use regularly. Select
the Templates tab and click Create template. Publish a template to make it available
to everyone in your practice. Alternatively, select Save as template from the
overflow menu on the Queries tab, to convert an existing query to a template.)
3. Bulk send (Select the checkboxes to send a query to multiple clients from the Xero
HQ client list. Select the checkbox, All clients to send the query to all of your HQ
client contacts.

 View queries (View client responses, including what user role you need to view all
practice queries for all clients; You'll receive an email when the client has submitted
answers to some or all of the questions in a query. Check the progress of a query from
the Ask queries tab.)
1. Go to Ask and find the query. Sort by Progress, Due date or Client name to make the
query easier to find.
2. Click the query to view the clients’ responses, including any supporting documents
they’ve uploaded.
3. Click the overflow menu for more options. Depending on the status of the query,
you can Resend, Copy, Save as template, Close or Delete the query.
 Practice Queries (Everyone in the practice can use Ask regardless of their user role.
Access to view queries depends on your user role; A Standard user can create
queries for their clients, and view all queries for the clients they have access to. If
they have Edit access for the client in HQ, they can edit and resend the query. If they
have View access to the client in HQ, they can only Preview the query; Master
administrators and Administrators can create and view all queries for all clients.)

 Xero dashboard contains up-to-date and relevant information about a business. It's easy
to customise and quickly navigate to key areas in Xero.
 Customise the dashboard
 Dashboard Overview (The dashboard shows you a snapshot of the business
financials and cash flow. What you see depends on your user role.)
1. Bank accounts (Once connected, bank accounts show automatically on the
dashboard. See the organisation’s activity and items to reconcile.)
2. Invoices owed to you (View a summary of invoices owed to the business. This comes
from your accounts receivable. The same panel is available for bills you need to pay -
your accounts payable.)
3. Business performance (Choose to show your organisation’s performance graphs as a
panel on the dashboard. The graphs give you insights into business performance,
every month.)
4. Total cash in and out (Keep an eye on cash going in and out of the organisation. Xero
bases this on actual bank transactions, linked to the Bank Summary report.)
5. Account watchlist (Monitor data for key accounts from the chart of accounts, such
as sales, general expenses, or wages. This helps you identify potential issues before
year end.)

B.) SET UP XERO

USE THE DASHBOARD

 Customize dashboard panels (Configure the panels to show the most relevant
information about the organisation. Changes made to the Business performance and
Account watchlist panels, are seen by all users. Any changes made to the dashboard
layout are unique to your login.)
1. Click Edit dashboard to show the customisation options.
2. Click Show or Hide, then save your changes to display the panels as you need.
3. Drag panels to arrange them as you want. Save your changes when you're finished.
4. The business performance dashboard helps to identify important trends quickly and
easily. You can add graphs to this dashboard. From Accounting, select Reports, then
click Business Performance under Financial to show the graphs. Select the stars to
add them.
5. Keep an eye on important accounts. In the Chart of accounts screen, choose which
accounts to display on the account watchlist. Click an account, select Show on
Dashboard Watchlist and click Save.
 Navigate in Xero
Navigate in an organization (The navigation bar gives you easy access to the different
features of Xero. You see different options depending on your user role.)
1. Organization (The Organisation menu lets you access uploaded files, organisation
settings, and connected apps. If you have access to more than one Xero
organisation, switch between them here. Access partner tools like Xero HQ,
Workpapers, and Practice Manager if you're a Xero Partner.)
2. Business (The Business menu lets you access day-to-day tasks such as invoices, bills
and expenses. You can also set up and manage inventory items under Products and
services.)
 3. Accounting (The Accounting menu lets you manage bank accounts, run reports, and
use the advanced settings and tools like Fixed Assets.)
4. Payroll and projects (If you have access to Payroll or Projects in an organisation, you
see the options on the navigation menu.)
5. Contacts (The Contacts menu contains information for customers, suppliers and
other important contacts, to help you manage business relationships.)
6. User (The User menu helps you configure your Xero account. Change your login
details, and opt into two-step authentication. These changes only affect your own
login. You can also upload a profile picture and access Learning in Xero Central.)
 Search and create transactions (Search for transactions, and create new transactions
directly from the dashboard or anywhere in Xero.)
1. Search (Use the search function to look for specific transactions or contacts.)
2. Create New (Quickly create a new transaction from this menu, such as an invoice or
bill. What you see here depends on your user role.)
 Connected apps (Xero directly connects to a wide range of third-party apps to share
and sync data. This helps achieve efficiencies in day-to-day business tasks. Click App
marketplace to search for apps, view our recommendations, and manage ones
already set up for your organisation.)
 Notifications and Logins
View and action notifications (Xero notifies you of product updates and new
features, bank feed status updates, and other important information. If you’re the
subscriber, we notify you when we process your subscription payment.)
1. View (Click the bell icon to view notifications. The icon number lets you know when
you have a new one. Click the X to delete a notification.)
2. Turn off/on (Notifications are turned on by default. Click Settings and clear the
checkbox to turn them off.)
 Login history (Keep an eye on your recent logins into the organisation. View the login
location, time, and IP address for every time you login.)
1. Check your last login time and location on the dashboard. Click the details of your
last login to see more of your login history.
2. Review the date, time, general location, and IP address of your ten most recent
logins to the organisation. If anything seems suspicious, click Contact Support[1] to
let us know.

ENTER BASIC SETTINGS

 Organization settings (Add basic information, such as contact details and a logo.)
 Enter basic information (Add information so Xero automatically enters it into the
organisation, including online invoices and reports.)
1. Click the organisation name, select Settings, then click Organisation details.
2. If you're managing a client organisation, select On to choose the details to show on
online invoices. Xero includes the legal / trading name and logo by default. If you're
logged into your practice organisation, Xero directs you to manage your settings in
My Xero.
 3. Xero uses the Display name[1] for the organisation name. Use this when you set up
bank feeds. The Legal / Trading name shows on financial reports, invoices, quotes,
and batch deposit summaries.
4. Click Upload logo, and Browse to find and upload the organisation’s logo. Clear the
checkbox to remove it from the standard branding theme that’s used for invoices
and quotes.
5. Enter the organisation's line of business and select the closest match from the top
results. If you’re a Xero partner, you see this information in Xero HQ Explorer. Check
that the Organisation type is accurate for the business.
6. Enter the organisation's Business Registration Number. The number format depends
on the regional version of Xero you use. It’s important that this number shows on
any sales tax reports sent to the tax authorities in your region.
7. Enter a brief description about the organisation. If you select Include, it shows in the
footer of online invoices and quotes.
 Enter contact details (Enter contact details, website information, and social media
links.)

 Manage users (Invite staff and give them the right level of access in Xero.)
 User roles and permissions (Add an unlimited number of users to a Xero
organisation. For security and ease of use, give each user their own login with a
suitable user role. Select the best access level, then add and remove specific
permissions.)
1. Subscriber (The subscriber is responsible for the Xero account, billing, and user
accounts. There can only be one subscriber in each organisation. They can transfer
the subscription to another user at any time.)
2. Business & Accounting (Someone with the invoice only role can access sales,
purchases, or both. Users with the standard role can carry out day-to-day tasks, and
can have restricted access to reports. Advisors have full access including advanced
accounting features. Anyone with the read only role can view transactions, but can’t
add or edit.)
3. Xero products (Select additional user roles if the organisation has Xero Projects, Xero
Payroll, or Xero Expenses.)
 Add and edit user access (You can add, edit, and delete users if you're the
subscriber, or you have the adviser or standard user role with manage users
permission.)
1. Go to Organisation settings and click Users
2. Xero shows the users that can access the organisation, their user roles, summarised
permissions, and when they last logged in.
3. Click Invite a user
4. Enter their name and email address
5. Select the right user role and permissions. Add a personal message if you need, then
send the invite. The user receives an email with a link to accept the request. This link
expires after 14 days.
 6. To edit a user, click their name or click the menu icon and select Change
permissions. Select Delete to remove the user from the organisation.
7. Use the Login history tab to see who’s accessed the organisation and when the login
occurred.

 Multicurrency (Add other currencies to manage foreign transactions.)

 Add a foreign currency (Add currencies to create foreign transactions, and add bank
accounts with a different currency from the organisation's base currency. The
organisation must be on a premium pricing plan.)
1. Go to Organisation settings, and click Currencies. You must have the adviser or
standard user role to add currencies in Xero.
2. Click Add Currency and select one from the list. You see the current exchange rate
that's updated hourly by XE.com. Click Add Currency to save it to the organization.
 Edit an exchange rate (You might need to override the current XE.com rate. For
example, when setting monthly exchange rates, or to match the rate from a bank.)
1. Use the date picker to review exchange rates for all currencies on a specific day.
Select an earlier date to see historic rates used in Xero at that time. Future dates
always show the current rate unless you adjust it.
2. Click the currency you want to edit to set a new rate.
3. The date from the Currencies screen shows here. You can set a specific date range to
apply the change to. Enter the new rate up to six decimal places.
4. Set start and end dates to apply the rate for a period of time. If the change is for a
single date, enter the same date for both. It won't override rates on existing
transactions within the date range. Click Save.
5. Xero adds a note stating who changed the exchange rate, and when.

USE FILES IN XERO

 Add and organize files (Upload documents to Xero and sort into folders.)
 Access the file library inbox (Store important documents in the organisation's file
library Inbox. The adviser and standard user roles have full access to files. Users with
the invoice only role can view, add, and remove files for transactions they have
access to. Read only users can view files attached to transactions they have access
to.)
To open the Inbox, click on the organisation name and select Files
 Upload files (There are many ways to get documents into Xero. Xero also accepts
many file types like PDF and JPG. For more information on accepted file types and
sizes, see the Learn more section below.)
1. Click Upload files to browse and upload one or more files at once.
2. Drag one or more files from your computer into the file library.
3. Send files directly to the file library Inbox. Use your unique Inbox email address to do
this.
 4. Upload an image or file from a mobile device to the file library Inbox using the Xero
Business app. Download the app from the App Store for iOS or Google Play for
Android.
 Organize files (Add folders, like year end or insurance, to help manage your files and
access documents quickly. Before you add a file to a transaction, move it to a folder
to keep it in the file library Inbox.)
1. New folder (Click New folder, give it a name like year end or utilities, and save it.
Then upload directly to the new folder, drag files from the Inbox, or drag files
between folders.)
2. Options (Click Options to rename or delete a folder. If you delete a folder that
contains files, you can either move them to the Inbox or delete them.)

 Attach files to transactions (Attach files to invoices, bills, and other transactions.)
 Attach files (Attach documents and other files to transactions wherever you see the
file icon. Add existing files from the file library, or upload new ones to transactions.)
1. Transactions (Click the file icon to attach files, like product images or PDFs of original
documents, to transactions such as invoices or bills. You can also drag files from your
computer into transactions. Click the options icon to include a file with the online
invoice.)
2. Bank reconciliation (Attach images of receipts to support bank transactions. Click
Add details and select the file icon to attach a file, or drag one to the transaction
from your computer.)
3. Contacts (Attach documents like customer and supplier contracts to customer,
supplier, and employee contact records. Open a contact and click the file icon[1] to
attach a file, or drag one from your computer.)
4. File library inbox (Select the file’s checkbox and click Add to new. Select the
transaction to create with the attached file. When you create a transaction from a
file in the Inbox, Xero removes it from the library. To keep a copy, you first need to
move it to a folder.)
 Side by side view (Keep documents open when you create a transaction to reduce
the risk of entering wrong data. View an attached file beside the invoice, bill, spend,
or receive money transactions.)
1. Click the file icon, then click the file you want to view.
2. If the file shows in a separate dialog box, click the arrow to show it beside the
transaction.
3. Click the arrow to view the file in a separate dialog box, or once you enter the details
in Xero, click X to close the file.

ENTER ADVANCED SETTINGS

 Financial Settings (Change the financial year end and set tax defaults for transactions.)
  Change the financial year end (Change the organisation's year end if it’s different to
the default setup date.)
1. Go to Accounting, Advanced and select Financial settings. You need the adviser or
standard user role to access this.
2. Beside the financial year end date, click Change
3. Select a new date and click Done. This change impacts balances, reports and fixed
assets, so check the year is correct as soon as possible.
4. Click Save to confirm.
 Set Sales tax information (Enter the tax basis and period so Xero calculates the
correct tax on transactions, and creates accurate sales tax reports.)
1. Tax Basis (The tax basis affects the way Xero includes transactions in the Sales Tax
Report. Place your cursor over the following options to see what's involved:
- Cash Basis (bases the report on the date you made or received payments)
- Accrual Basis (bases the report on the transaction date)
- None (Xero defaults to no tax when creating transactions)
2. Tax ID (Enter the tax ID number provided by the local tax authority. You must enter a
tax ID display name to show the tax ID number on sales tax reports and invoices in
Xero.)
3. Tax period (Select the default period to capture transactions for the sales tax
report.)
 Tax defaults (Select the tax defaults for sales and purchases. This saves you time and
ensures consistency when entering transactions. You can change the defaults on
individual transactions.)
1. Based on last sale/purchase (Xero applies the tax default last used on a sales or
purchase transaction.)
2. Tax inclusive (Xero includes tax in the unit price. The transaction subtotal and total
will be the same.)
3. Tax exclusive (Xero excludes tax from the unit price, and adds it to the subtotal. The
transaction subtotal and total will be different.)
4. No tax (Xero excludes tax from each transaction.)

 Lock dates (Use lock dates to stop changes being made to transactions for a past
period.)
 Enter lock dates (Set lock dates to prevent changes being made to transactions for a
past period. For example, previous financial years or earlier tax periods. You need
the adviser role to do this.)
1. Stop all users (except advisors) Let only advisors make changes on or before the lock
date. During the locked period, advisors can approve draft transactions for all users,
and create and approve transactions. Non-advisors can only create draft invoices
and bills, and submit them for approval.
2. Stop all users (No one can make changes on or before the lock date. Everyone can
create draft invoices and bills, and submit them for approval. To approve draft
transactions, advisors must edit or delete the date to unlock the period.)
  Tax rates (Customise the tax rates for the organisation.)
 Customise tax rates (Tax rates control sales tax on transactions such as invoices, bills
and manual journals. You must add a default tax rate to every account in the chart
of accounts. When you select the account, Xero applies the default rate to the
transaction. You can change each rate on the transaction without affecting the
default rate in the chart of accounts.)
1. Go to Accounting, Advanced and select Tax rates
2. You can’t delete a tax rate with a lock symbol, but sometimes you can edit it. For
example, if it's not used in a transaction.
3. Click New Tax Rate to add a new rate or click an existing one to edit it. Add a display
name to show in the chart of accounts and select in transactions.
4. Add tax components to divide the rate into separate percentage calculations. Click
Save

 Tracking (Add tracking categories to report on different parts of the organisation.)

 Set up tracking (Set up tracking categories to see how different areas of the business
are performing. Tag transactions such as invoices, with a category option to report
on departments, cost centres, or locations. Tracking isn’t suitable for jobs or other
short-term transaction tracking. Try Xero Projects or a third-party app to track jobs.
1. Go to Accounting, Advanced and select Tracking categories
2. Click Add Tracking Category to create a new one. You can have two active tracking
categories, and you can archive any that you don’t use anymore.
3. Name the category and add options. For example, call the category Location and add
options like North, South, East and West. Click Add another item to add extra
options. You can add up to 100 tracking options for each category.
4. Click X to delete a category or option, or Rename to change the name.

ADJUST THE CHART OF ACCOUNTS

 Xero chart of accounts (Xero assigns a default chart of accounts with a flat structure,
and uses the account type to arrange accounts in reports. You can add tracking
categories for departments or locations, or use the report layout editor to group
accounts in reports. You must have the standard or advisor user role to do this.)
 Account types (Every account in the chart of accounts has an account type. Xero
uses this to manage transactions coded to the account and present accounts in
reports. Xero groups account types into account classes for reporting; revenue,
expenses, assets, liabilities, and equity.)
 System and locked accounts (A lock icon beside an account in the chart of accounts,
means it’s either a system account or one locked by Xero for a specific function. You
can’t remove these accounts.)
1. System Accounts (Xero uses these for specific accounting functions such as accounts
receivable and payable, and reporting. You can post transactions and manual
journals to certain system accounts, like historical adjustments or retained earnings.
 You can also edit the account names and codes, but you can't delete or archive the
accounts themselves.)
2. Locked accounts (Xero locks other accounts used for repeating transactions, bank
rules, tracked inventory, registered fixed assets, or a Payment Service account. You
can post transactions and manual journals to locked accounts that aren’t system
accounts. You can also edit these accounts, but you can’t delete or archive them.)

 Add, edit and delete (Add, edit, delete or archive an account to adjust the chart of
accounts.)
 Add or edit an account (Add a new account to the chart of accounts or edit an
existing one.)
1. Go to Accounting, Advanced and select Chart of accounts. Then click Add Account or
click an existing account to edit it.
2. Select an Account Type. See how the account type affects your reports
3. The Code can be up to ten characters long and must be unique. It can be a
combination of numbers, letters, and other characters. Xero warns you if it's already
in use.
4. The Name can be up to 150 characters long and must be unique. Use a name that
briefly describes the account.
5. The Description should be information specific to the account's main use.
6. Select or edit the default tax setting. You can change the rate on individual
transactions.
7. Select the checkboxes to show the account on the dashboard, select it in expense
claims, or enable payments to it from non-bank accounts like owners drawings.
8. Click Save to add the account or save your changes.
 Delete or archive an account (Delete an account that’s never been used and isn’t
required. Archive an account that has transactions posted to it. You can't use
archived accounts for transactions, such as invoices and expense claims.)
1. Delete or archive (Select the account checkbox and click Delete or Archive. You can
select multiple accounts to manage at the same time. If you’re deleting, Xero
automatically archives any accounts that contain transactions.)
2. Restore (You can restore archived accounts at any time, so they’re available to use in
transactions. Select accounts on the Archive tab and click Restore)

IMPORT THE CHART OF ACCOUNTS

 Enter the information (Enter the right chart of accounts information into the import
template.)
 Download the template (Use a CSV import template to set up a new chart of
accounts, or edit the existing one. You must have the standard or adviser user role
to do this.)
1. Go to Accounting, Advanced and select Chart of accounts
 2. Click Import to download a copy of the import template. If you’ve already updated
the chart of accounts, click Export to download the current version to your
computer.
3. Click the link to download the template, and save it to your computer.
 The import template (The template columns represent chart of accounts fields. Each
row represents an account that you want in the chart of accounts.)
1. Column Headers (A header with an asterisk means the fields in the column are
mandatory. You must enter a value for each row that you want updated in the chart
of accounts.)
2. Balances (If converting from other software, you can enter opening balances in the
Balance column for each account. Xero imports positive values as debits and
negative values as credits, and posts the values when you save them in the
Conversion balances screen. If you've already entered conversion balances, leave
the Balance column blank to keep them.)
 System and locked accounts (A lock icon beside an account in the chart of accounts,
means it’s either a system account or one locked by Xero for a specific function. You
can’t remove these accounts. Identify them in the import file by specific account
types, like Accounts Receivable, Wages Payable or Historical Adjustment.)

 Import the template (Import the updated chart of accounts template into Xero.)
 Import the chart of accounts (Import the updated CSV file into Xero to customise the
organisation's chart of accounts.)
1. Click Import on the Chart of accounts screen.
2. If you're using the Xero template, select Xero from What system are you importing
from. Select whether you included balances and if the conversion date is different,
select the correct date. The available options depend on your region.
3. Click Browse to find and select the CSV file. Click Import
4. Check the updates for Xero to make - you can view the affected accounts to help
you. Click Confirm to continue.
5. If the file includes accounts with the Bank type, select a specific Account Type for
each. Xero creates the accounts on the Bank accounts screen, for importing
statements and setting up bank feeds. Select Current Asset for accounts that don't
need a bank account. Click Save to finish.
 Tips for importing
1. Incorrect column header (Make sure you correctly order the headers and keep the
names the same. You must keep mandatory columns in the file. You can delete
optional columns you don't use.)
2. Incorrect tax type (The Tax Code column must use exactly the same spelling as the
tax rate name in Xero. Check it in Accounting, Advanced, Tax Rates.)
3. Required values (For mandatory columns, there must be values in each row with no
blank cells.)
4. Invalid file type (Make sure you save the template file in the CSV format. Xero
doesn’t recognise other file types when importing.)
IMPORT INVOICES AND BILLS

 Enter the information (Download the template and complete the fields.)
 Download the template (Import invoices and bills in bulk using an import template.
It’s an efficient way to bring outstanding transactions into Xero during conversion.)
1. Go to Business and select Invoices to import outstanding invoices. Select Bills to pay
to import outstanding bills.
2. Click Import
3. Download the CSV template file
 Complete the required fields (Complete the import templates with the outstanding
invoice and bill information. If you’re moving to Xero from other accounting
software, export your invoice and bill information to copy into each template. The
column headers represent invoice and bill fields. Ones with an asterisk are
mandatory. They must remain the same for Xero to import the file.)
1. Contact Name* (Enter the contact name exactly as it appears in Xero. If they're new,
Xero creates a contact record for them.)
2. Invoice Number* (These rows represent individual invoices or bills. If there are
multiple line items for a transaction, add them as separate rows using the same
invoice or bill number.)
3. Dates* (The invoice date is important when moving to Xero from other software.
Unpaid invoices and bills dated before the conversion date should make up the
conversion balances for accounts payable and receivable. Check the conversion date
and add balances in Accounting, Advanced, Conversion balances. The due date
shows when payments are due. Use DD/MM/YYYY format.)
4. Description* (Enter the invoice description. Xero still imports invoices without this,
but you’ll need to complete it before approving them.)
5. Amounts* (Enter the quantity of the items in the transaction. Enter unit amounts
either all inclusive, or all exclusive of tax. You can't import a combination of both.)
6. Account Code* Enter the account code as it appears in Xero. Xero uses this to code
the transaction to the correct account.)
7. Tax Type* (Enter the tax type name as it appears in Xero. Check the spelling in
Accounting, Advanced, Tax rates.)
 Complete the optional fields (Filling in optional fields lets you complete several tasks
at once, for speed and efficiency. For example, import email addresses and phone
numbers, so you don’t have to enter them manually or import them separately
later.)
1. Contact (Enter information into the email and address columns. Go to the Contacts
tab to review it after importing.)
2. Reference (Enter a reference to help you identify and search for imported
transactions.)
3. Inventory (If you’ve set up inventory items, enter an inventory code to help you
monitor the items you buy and sell. If there's a new code in the file, Xero creates a
new untracked inventory item. You can change it to tracked later if you need. Go to
Business, Products and services to find inventory items.)
 4. Details (Add a discount up to two decimal places without the % sign. Enter a
currency to use instead of the base currency set up for your organisation. You can
import tax amounts different from the ones calculated using the TaxType column.
Depending on your region, add a new TaxAmount column or use the existing one to
enter the amounts. All amounts must be tax exclusive.)
5. Tracking (Add tracking categories and options to track transactions by department,
store, or other divisions you want to report on. You first need to set tracking up in
Accounting, Advanced, Tracking categories.)
6. Branding theme (If you set up custom invoice templates in Xero, enter the branding
theme to apply to the invoice. It must be spelt exactly as it appears in Settings,
Invoice settings, Branding themes.)
7. Save (Save the updated template as a CSV file to import.)
 Import the template (Import transactions and approve them in Xero.)
 Import invoices and bills (Import the updated CSV file to bring the invoices or bills
into Xero. The process is the same for both transaction types. Here, we’ll import
invoices.)
1. Click Import on the Invoices screen. Go to Bills to pay to import bills.
2. Click Browse to find and select the CSV file. The available options depend on your
region. Select whether you included contact addresses, and if the amounts are tax
inclusive or exclusive. Click Import.
3. Xero confirms the number of draft transactions to import, and any rows that it can't
import successfully. Click Complete Import to finish.
 Approve invoices (Xero imports transactions in draft status. The process is the same
for invoices and bills. Here, we approve invoices.)
1. Click Draft to view all drafts.
2. Select the checkboxes of the transactions to approve. Click Approve
3. Xero confirms the number of drafts to approve. Click OK to approve them.

SET THE CONVERSION BALANCES

 Enter the conversion date (The conversion date is when the business starts using Xero
for everyday transactions. Unpaid invoices and bills are the only transactions you should
enter before this date.)
1. Go to Accounting, Advanced and select Conversion balances
2. Click Conversion Date
3. Add the conversion date. You can set it to the start of any month in the year. We
recommend you align it with the beginning of a financial year or sales tax period.
Click Save
 Enter conversion balances (Add balances for the organisation's accounts as they stand at
the conversion date.)
 Add the conversion balances (Conversion balances are the opening amounts for the
organisation’s accounts, as at the conversion date. You should use the amounts from
the final trial balance, the day before the conversion date. You can import balances
with the chart of accounts, but here we enter them manually.)
 1. Start typing an account name to find and select it, or click Show all accounts to view
them all. Add a new account if it's missing.
2. Enter amounts in the debit and credit columns from the trial balance you created
before converting to Xero. The column totals should be the same. If they're not,
Xero posts the difference to a historical adjustment account
3. To prevent staff members entering transactions before the conversion date, select
Lock balances. You must have the adviser role to do this.
4. Click Save. Xero posts a conversion journal to confirm the balances and set the
opening balances for reporting.
 Uncleared Items (Enter the bank statement balance from the conversion date (not
the bank balance from your previous accounting software). You must account for
any differences when entering balances for bank accounts. For example, bank
transactions that haven't cleared the bank account, such as uncleared cheques.)
1. Uncleared items account (Add an account for uncleared items. Enter the conversion
balance for the difference between the bank statement balance and your previous
software bank balance. The account total and the previous bank balance should
equal the actual bank balance.)
2. Reconcile items (Once the items clear in the bank, reconcile them to the uncleared
items account. Once reconciled, you can archive the account.)
 Outstanding transactions (Before you can save conversion balances, you must enter
any outstanding transactions as at the conversion date. These unpaid invoices and
bills make up the balances for accounts receivable and payable. The most efficient
way to do this is to import them before you enter the conversion balances.)
1. Click Save when you finish entering the conversion balances. If you haven’t imported
the unpaid invoices and bills, Xero opens a new screen to add the transactions
manually.
2. Click Add Invoice, Add Bill or Add Credit Note to add an unpaid transaction. You
don't see this screen if you imported unpaid invoices and bills before saving the
conversion balances.
3. Add the transaction details, then click Save
4. Xero confirms when the transaction totals match the accounts receivable and
payable conversion balances. Click Next
5. Xero confirms that you saved the conversion balances. You can edit them whenever
you like, but this is only recommended if there’s an error or you missed something
previously.

 Enter comparative balances (Add comparatives to show balances for prior years in
financial reports.)
 Add comparatives (Add comparative balances to show prior year comparisons in
financial reports, without entering full historical data in Xero. You can't import
comparative balances, you need to enter them manually in the Conversion balances
screen.; Click Add Comparative Balances to enter the prior years closing balances,
then click Save to confirm.)
C.) CONTACTS

GET STARTED WITH CONTACTS

 Import contacts (Use the import template to populate Xero with existing contacts.)
 Import contact list (Use the template file to save time and ensure details are correct.
Xero will automatically categorise contacts as Customers or Suppliers once an
invoice, bill or credit note has been entered against their record.)
1. Go to Contacts, All contacts and click Import
2. Save the template file to your computer.
3. Enter the contact details and save the template as a CSV or TXT file. Required fields
have an asterisk in the title. Keep the column headings in the file unchanged to make
sure the import is successful.
4. Click Browse to find and select the file from your computer. Choose how you want
Xero to handle empty fields for existing contacts, then click Import.
5. Review updates shown in the highlighted window. Xero will confirm new contacts
added, and changes made to existing contacts. Click Go Back if more changes are
needed, or Complete Import to continue.

 Add individual contacts (Enter contact details manually and set defaults for future
transactions.)
 Create a new contact (Add new contacts individually as the business grows.)
1. Click Add contact on the Contacts page.
2. Enter the details. Contact name is the only required field to create a new contact.
Enter an email address, for this to show automatically when emailing the contact
from Xero.
3. Choose whether sales and purchases are tax inclusive or exclusive, including a
default account and tracking information, if set up. Set default due dates for bills
and invoices. Xero will automatically populate default information on transactions,
when the contact is selected. Defaults can be overridden on individual transactions.
4. Every Xero organisation has a unique network key. Contact a Xero organisation for
their network key, and enter this against their contact record to send invoices or bills
from this organisation to theirs. Xero will create a draft transaction, saving the
customer/supplier from creating the transaction themselves and duplicating data
entry for both businesses.

 Maintain contacts (View and edit details for each contact.)

 View contact information (Select individual contacts to view activity, create new
transactions and attach files.)
1. New button (Create new invoices, bills, credit notes, quotes or purchase orders for
this contact.)
2. Files (Add a file to the contact record from your file library or device, such as a
supplier contract. See how many files are currently attached.)
3. Edit (Update contact information and financial details.)
 4. Awaiting payment (See invoices and bills awaiting payment, and view the recent
invoices or bills report to see those recently submitted. View outstanding quotes and
purchase orders.)
5. Contact activity (Use the three tabs to view contact activity. Track money in and out,
recent activity and add notes. Connect your Gmail or Office 365 email account and
store relevant emails to the contact record.)

ORGANISE CONTACTS

 Manage Contacts (Edit and update contacts to keep their details relevant.)
 Sort contacts (As the contacts list grows, it’s useful to know the easiest way to find
the details you’re looking for. Click Sort by and select an option, for example They
owe in descending order, to sort the contact list by who owes the organisation the
most money.)
 Maintain contacts (Tick the checkbox next to a contact to activate the Options
dropdown and make changes to keep the contact list up to date.)
1. Options (Click Options to merge or archive contacts. Keep customers up to date on
their activity by clicking Send statements)
2. Merge (Combine duplicate contacts. Select the contact you want to merge with
another contact. The first contact will be archived, and its transaction details merged
into the activity of the contact that remains.)
3. Archive (Archive contacts no longer needed. These can be viewed and restored from
the Archived section on the main Contacts page. Transactions of archived contacts
will not be affected.)
4. Statements (Send a statement to a customer or group of customers either covering
activity for a set period, or an outstanding balance as at a certain date. Filter by
contact name, account number, email or postal address to locate the correct
customer in the list of results. Print or email a copy as needed.)

 Contact groups (Organise contacts into groups relevant to the business.)

 Add to groups (Create groups to organise contacts. For example, group together
contacts who provide the business office supplies.)
1. Tick the checkboxes for the contacts you’d like to add to a group. Click Options and
select Add to group. Add contacts from one page at a time, if they’re listed over
multiple pages on the Contacts screen.
2. Select a pre-existing group and click Add, or click Add to new group, create a name,
Save and then Add.
3. Click the link in the notification or under the Groups heading to view the group. All
business and accounting user roles apart from Read only, can create and manage
contact groups.
 Create a group invoice (Invoice a contact group for the same products or services, in
one transaction.)
1. Go to Business and select Invoices
2. Click the New invoice drop down and select the group you’re invoicing.
 3. Enter the invoice details. Click Create draft invoices when complete. Xero will create
one draft invoice for each contact in the group.
4. From the Draft tab, select the invoices to send and click Approve. Confirm the
approval. Xero will move the invoices from the Draft tab to the Awaiting Payment
tab.
5. Select the invoices from the Awaiting Payment tab. Click Email, confirm the email
addresses and message before clicking Send

 Smart lists (Create targeted lists from information that’s saved about customers.)
 Create lists (Build Smart Lists from customers activity to send targeted
communications for outstanding or overdue invoices, or to promote new products
or services the business is selling in a new location.)
1. Click New by Smart Lists.
2. Choose All if you’re looking for contacts who meet all of the search conditions.
Choose Any if you’re looking for contacts who match any one of the search criteria.
3. Click Add a condition, and select the criteria you’ll use to refine the data. For
example, Purchased. More than one condition can be selected, to further define the
results. For example, who’s purchased an item in a particular location.
4. Select a specific inventory item, to see which customers have purchased that
product or service from the business. Click Run Search to view the new Smart List.
5. Tick the Select all customers checkbox and choose an export format from the list.
Send customised marketing campaigns from Constant Contact, an app connected to
Xero Smart Lists. All contacts must have email addresses added before Constant
Contact can be used.
6. Click Save Search, add a name for this list and Save

D.) BANKING

BANK ACCOUNTS AND TRANSACTIONS

 Add bank accounts (Add bank, credit card, loan and PayPal accounts as bank accounts in
Xero. Set up bank feeds to automatically populate statement lines; Add bank accounts in
Xero and connect to the bank. A bank feed allows transactions to flow in automatically,
ready for you to reconcile. You must have the Standard or Adviser user role to add bank,
credit card, loan and PayPal accounts in Xero.)
1. Go to Accounting and select Bank accounts
2. Click Add Bank Account
3. Search for and select the bank. If the bank can’t be found click, Add it anyway and
Xero will use what you’ve entered as the name of the bank.
4. Enter the Account Name and select an Account Type. The options on this list will be
determined by the bank that’s selected. In this example, Xero has a direct bank feed.
Select Other if the account type isn’t displayed on this list.
5. Add the Account Number and currency of the account. Click Continue
 6. Xero confirms that the new bank account has been added successfully. The account
is added to the dashboard, chart of accounts and bank accounts screen.
7. In the case where Xero doesn't have a direct relationship with a bank, enter the
Account Name, Account Number and currency, then click Continue
 Add an account code (Adding a bank account in the bank accounts screen doesn’t
require an account code to be entered. To add an optional account code for the
account, edit the account Code in Accounting, Advanced and Chart of accounts. Click
the account to bring up the edit screen, add an account code and Save)
 Set up a bank feed (Bank feeds connect a bank account in Xero to an automated and
secure feed of bank statement lines. Bank feeds automate and simplify the bank
import process. Xero is partnered with a large number of banks worldwide to allow
direct feeds. Where Xero doesn’t yet have a partnership with an institution, there
may be a feed available through a secure third party called Yodlee.)
1. Get started (For a direct feed, click Get Bank Feeds from the Bank Accounts screen. If
it’s a Yodlee feed, the button will display Start bank feed now.)
2. Connect direct feed (For direct feeds, you’re directed to set up the feed within Xero.
In some cases you’ll be directed to Xero Central where the setup process is
explained.)
3. Connect Yodlee feed (For Yodlee feeds, enter your bank Member ID[1] and online
banking Password. Accept the terms and conditions and click Next to connect the
bank.)
4. Statement import (If neither option is available, bank statements can be imported
manually.)

 Import bank statements (Manually import bank statements where no bank feed is
available, or to bridge the gap before a bank feed starts.)
 Import statements (Import statement lines to a bank account if a bank feed isn’t
available, or if there’s a gap in transactions between the conversion date and when
the bank feed starts.)
1. Navigate (Click Manage Account and select Import a Statement, from the Bank
Accounts screen.)
2. Import OFX/QIF (Browse and select the file containing the bank statement lines.
Click Import. You can import up to 1000 statement lines at a time. Most online
banking platforms allow users to export a CSV, OFX or QIF file, all of which are
accepted by Xero. OFX and QIF files are recommended as they don’t need to be
mapped to fields in Xero.)
3. Import CSV (If you’ve selected a CSV file, Xero will prompt you to map the column
headers in the file to the fields in Xero. The Date and Amount are required fields.
Extra information should also be mapped such as Payee and Description. Click Save.
This mapping step is only needed the first time a CSV is imported in a bank account.
OFX and QIF files will import without this step.)
 View statements (The Bank statements tab displays imported bank statements and
statement lines.)
 1. Navigate (Click into the bank account from the Bank Accounts screen, then click the
Bank statements tab.)
2. View statement lines (Xero displays information for each statement line along with
it’s reconciliation status, as the default view. Use the Statement Lines drop down to
change the view to Statements.)
3. View statements (Select Statements to show each batch of uploaded statement
lines. Statements can be a daily bank feed import or a manually imported file.)
 Xero automatically reconciles statement lines as spend and receive money
transactions when you include tax rate and account code details in a bank statement
import CSV file. Be careful not to code statement lines that match transactions
already created in Xero, such as invoices and bills.

RECONCILE INVOICES AND BILLS

 Reconcile transactions (Find and match existing invoices and bills to bank statement
lines.)
 Bank reconciliation screen (See all unreconciled bank statement lines brought in via
a bank feed or statement import, and reconcile them quickly.)
1. Access (Go to Accounting and select Bank accounts to access a list of all bank
accounts, then click Reconcile x items. Or, click Reconcile x items from the
Dashboard to access the reconciliation screen.)
2. Balances (There are two balances for a bank account, the Statement Balance and the
Balance in Xero. The statement balance is the total value of imported bank
statement lines, starting from the opening balance. The balance in Xero is the value
of account transactions created in Xero, starting from the opening balance.)
3. Bank (Xero will display individual bank statement lines and show the amount in the
Spent or Received columns.)
4. Match (Xero will suggest a Match for transactions entered in Xero such as invoices
and bills, based on the amount, date and payee of the statement line. Click OK to
reconcile. Once reconciled, the transaction is linked with the statement line, and no
longer shows to be reconciled in Xero.)
5. Multiple matches (Xero will suggest the most likely match for a bank statement line,
if there’s more than one possible match. Click X Other Possible Match Found to view
transactions and select the right one.)
6. No matches (Xero will display the Create tab when it can't find an exact match for
the bank statement line. Enter details here to create a new transaction directly from
the bank reconciliation. Use Find & Match to search for existing transactions in
Xero.)
 Find and match (Use Find & Match to search for and reconcile one or more
transactions with a statement line. For example, when a customer pays a batch of
invoices, or the business is paying a deposit towards a bill.)
 1. Click Find & Match
2. Search by name, reference or amount to find a specific transaction, or multiple
transactions.
3. Select a transaction or transactions to reconcile with the statement line. Click New
Transaction to create a transaction that isn’t already in Xero, and make up the total
of the bank statement line. For example, reconcile a bill, then add a spend money
transaction for an extra amount that was spent on top of paying the bill.
4. The value of the statement line must match the value of the transactions that have
been selected and/or created. Click Reconcile

 Advanced reconciliations (Reconcile transactions for part payments, overpayments,

bank fees and minor adjustments.)
 Reconciliation adjustments (Make an adjustment to reconcile transactions where
the statement line doesn’t match the transaction in Xero. Two types of adjustments
can be made from the Find & Match screen.)

1. Adjustments (In the Find & Match screen, click Adjustments to choose an
adjustment type.)
2. Bank fees (Add a bank fee adjustment to make the transaction match the bank
statement line. For example, a customer payment has been reduced due to
transaction fees charged by a payment service provider. Select Bank Fee from the
Adjustments menu. Enter the account, amount and additional detail. The bank fee
amount is the difference between the statement line and the transaction in Xero.
Click Reconcile, when they match.)
3. Minor adjustments (Select Minor adjustment to write off rounding errors and other
small differences between the statement line and transaction amount. Enter the
value, and click Reconcile when the transaction and adjustment match the
statement line. This amount is coded to the rounding system account in the chart of
accounts.)
 Partial payments (Record a partial payment of an invoice or bill if the entire amount
has not yet been paid or received.)
1. Find and select the part paid invoice or bill from the Find & Match screen. Then click
the Split link that appears.
2. Xero automatically calculates the part payment and remaining amount of the invoice
or bill, which can be paid at a later date. Click Split.
3. Xero will separate the invoice or bill into two lines, one for the part payment and
one for the remaining amount. Click Reconcile to finish.
 Prepayments (Record advance payments or deposits for invoices and bills that have
not yet been created. Prepayments can be created from the reconciliation screen,
and an invoice number is assigned if they relate to payments received. Prepayments
can be applied as a credit to invoices or bills for the same contact, or refunded.)
1. Click Create and Add details on the bank statement line you wish to create a
prepayment for.
 2. Select Prepayment from the Received as menu. If creating a prepayment for a bill,
the menu will show Spent as.
3. Xero will populate the Description, Unit Price and Qty along with other details from
the statement line. Edit if necessary. Add an account code and tax rate to complete
the transaction. This information can be accessed and edited at a later date. Click
Save Transaction
4. Click Reconcile to match the statement line with the prepayment.
 Overpayments (Reconcile statement lines in cases where overpayments and
duplicate payments have been received or paid to customers and suppliers. Apply
overpayments as credit to invoices and bills for the same contact, or refund them.)
1. If too much has been spent or received for an existing invoice or bill, click Find &
Match and select the invoice or bill. Click New Transaction, and select spend or
receive money.
2. Select Overpayment from the Received/Spent as menu. The contact, date,
outstanding amount, and other statement line details will be populated in the
overpayment. Tax rate and Account are populated and locked by default. Click Save
Transaction
3. For statement lines with no existing invoice or bill, click Create and Add details for
the overpayment. This method can be used for duplicate payments that come
through as separate bank statement lines.
4. Select Overpayment from the Received/Spent as menu. Xero populates the
overpayment information. Click Save Transaction.
5. The transaction(s) will display, whether a combination of invoices or bills and
overpayment transactions or just an overpayment transaction. Click Reconcile

CREATE BANK TRANSACTIONS

 Spend and receive money transactions (Code cash transactions to the general ledger.)
 Create a transaction (Save time by creating spend and receive money transactions
while reconciling the bank account. Efficiently record cash transactions in the
general ledger without raising a full invoice or bill.)
1. Click Reconcile x items from the dashboard.
2. From the Create tab start typing to find an existing contact, or enter a new contact
name in Who.
3. Start typing an account code or name in What to find the account quickly. Enter an
optional description in Why
4. Select a tracking category to assign an optional tracking category, if set up. Select a
tax rate if different to the default for that account
5. Click OK to reconcile. Xero will reconcile the bank statement line and create a spend
or receive money transaction with the details entered.
 Itemise transactions (Allocate amounts from a bank statement line to different
accounts in the general ledger, or apply different tax rates to individual items.)
1. Click Add details from the Create tab.
 2. The contact, date and total transaction amount, along with other statement line
information will be populated automatically.
3. Enter the description, quantity, unit price, account and tax rate for each line item. Or
select an inventory item to populate these details, if set up.
4. The itemised total should match the statement line amount, otherwise the
transaction won’t reconcile. Click Save Transaction and Xero will create a transaction
with separate line items.
5. Xero takes you back to the Find & Match screen. Click Reconcile. The bank
statement line is reconciled to the itemised transaction.

 Transfers and suggestions (Transfer money between bank accounts and recognise
coding suggestions from Xero.)
 Transfer transactions (Reconcile transfer transactions to record the movement of
funds between bank accounts in Xero.)
1. Click Transfer. Select the bank account that the funds are being transferred from or
to. Click OK to complete the transfer.
2. Xero will create a transfer transaction in the other bank account that the funds are
being transferred from or to. If this account has a bank feed or statement imported,
Xero will match the transfer transaction to the relevant statement line. Click OK [1]
to reconcile. If there's no statement line to reconcile with the transaction, then
manually mark the transfer transaction as reconciled.
 Suggested create transaction (If you've previously reconciled a statement line and
another comes through with the same details, Xero will suggest a contact, account
and description. Review the details before reconciling, and change if required.
Deselect the checkbox to switch off suggested previous entries.)

USE BANK RECONCILIATION TOOLS

 Bank rules (Create bank rules to save time reconciling regular cash payments and
receipts.)
 Bank rule types (Create bank rules to quickly reconcile cash payments and receipts
that don’t require an invoice or bill. There are three different types of bank rules you
can create.)
1. Spend Money Rules (Use spend money rules to quickly reconcile regular cash
payments. For example, taxi fares and coffee.)
2. Receive money rules (Use receive money rules to quickly reconcile regular cash
receipts. For example, daily cash sales.)
3. Transfer rules (Use transfer rules to quickly reconcile the movement of funds
between bank accounts in Xero. For example, monthly credit card payments made
from the business bank account.)
 Add a bank rule (Create a bank rule from the Bank Rules screen.)
1. Go to Accounting and select Bank accounts
2. Click Bank Rules
3. Click Create rule and select the type you need.
  Define conditions (Set conditions for bank rules to match bank statement lines. Xero
will recommend a transaction to be created, each time a statement line matches the
conditions defined in the rule.)
1. Select All to reconcile statement lines that match all conditions. Select Any to
reconcile statement lines that match at least one condition. Text fields relate to
information shown on the bank statement lines. The text entered here needs to
match the information that comes through on the bank statement line exactly.
2. Select equals if the condition has to exactly match the selected text field. Use
contains if the selected text field has to contain the suggested text. Choose starts
with if the statement line has to start exactly the same as the suggested text. Use is
blank when the selected text field has no information.
3. Set the contact to use for the transaction. This could be a new or existing contact, or
the payee from the statement line. If the contact is the same for each transaction
then, select the payee from the bank option
4. Enter details to allocate fixed amounts of the statement line to different accounts.
For example, allocate a fixed amount for a loan repayment to a loan account and the
remaining amount to a different account. In this example, we're coding the
remaining balance to an interest expense account. Alternatively, split between
multiple accounts using a percentage.
5. Set the reference for the transaction. This is taken from the statement line or added
manually during reconciliation. Go to the bank reconciliation screen and click More
details on the bank statement line to view the reference.
6. Pick a specific bank account you want the rule to be applied to or select all bank
accounts. Give the rule a title. Click Save.
7. Click OK to reconcile cash transactions picked up by bank rules from the
reconciliation screen)

 Cash Coding (View unreconciled bank statement lines in a spreadsheet format to code
and reconcile multiple cash transactions in bulk.)
 Add comments (Use the Discuss tab to add comments to a statement line. Do this if
you’re unsure what a bank statement line relates to. Users with access to bank
accounts can see the comments when they view the bank reconciliation screen. For
example, a small business owner can contact their Adviser to find out how to code a
purchase.)
1. Navigate (Click Reconcile X items on the dashboard.)
2. Discuss (Click the Discuss tab, enter a comment or a question and click SAVE)
3. Cash Coding (Saved comments can be viewed from the Cash coding screen. Hover
over the comment icon in the Date column to view it.)
 Cash coding (Create and reconcile multiple cash transactions in bulk, to match
imported statement lines. You need the Adviser or Standard + Cash coding user role
to access cash coding. Using cash coding can be a huge time saver when there’s a
large number of statement lines to be reconciled.)
1. In a bank account click the Cash coding tab. Click Shortcut keys to view time saving
shortcuts.
 2. Select the Show lines with suggested matches checkbox, to include statement lines
for which Xero has suggested a match with a transaction already in Xero. These
statement lines should be reconciled in the Reconcile tab, to avoid creating duplicate
account transactions.s
3. Click Save & Reconcile All to reconcile statement lines matched by Xero as a result of
bank rules. This will remove the statement lines from the Cash coding screen,
leaving the remaining statement lines to be coded and reconciled.
4. For statement lines you wish to manually add a bank rule to, select the relevant
statement lines, then choose an existing rule from the Apply rule menu.
5. Click the column headers to sort the data by Date, Payee, Reference, Description or
amount. Use the sort function to analyse payments and group similar statement
lines to help reconcile in bulk.
6. Save time by reconciling similar cash transactions in bulk. Select the checkboxes for
the statement lines you want to code the same way, and enter details in any row.
Hold down the shift key while selecting statement lines, to bulk select a range of
statement lines. Click or tab across to the next field and Xero will copy the data to all
selected lines. Click Save & Reconcile Selected to complete.
7. Click the down arrow at the end of the statement line and select Split to assign the
transaction to more than one account code. For example, when part of a fuel receipt
relates to purchasing food.

USE BANK RECONCILIATION REPORTS

 Reconciliation reports (View and export uncoded statement lines to work with offline.
Run the Bank Reconciliation report to view the balances and help identify errors.)
 Uncoded statement lines (Export a list of uncoded bank statement lines for you or
others to work with offline. Use uncoded statement lines to analyse and reply to
comments quickly in a spreadsheet format. Only users with the Adviser user role can
export this list.)
1. Go to Accounting and select Bank accounts
2. Click Uncoded Statement Lines
3. Select All bank accounts or a specific bank account. Select Bulk download across all
orgs if you have access to multiple organisations.
4. Set the date range and use the Order By and Sort Order options to arrange the
search results. Click Run
5. Click Export and select PDF or CSV.
 Bank reconciliation report (Use the Bank Reconciliation report to help identify errors
and reconcile the bank account.)
1. Xero balances (The Statement Balance is the sum of the conversion balance plus the
imported bank statements. The Balance in Xero is the sum of the conversion balance
plus the account transactions created in the bank account.; Differences between the
Statement Balance and Balance in Xero arise when there are: Unreconciled bank
statement lines - where related account transactions have not yet been created.;
 Unreconciled account transactions - where the related payment has not yet shown
up in the bank account or has not yet been imported.)
2. Navigate (From the Dashboard, click the overflow menu on a bank account and
select Reconciliation Report)
3. Reconciliation report (The Balance in Xero and the Statement Balance[1] will match
when all bank statement lines and outstanding transactions have been reconciled.
Run this report to check if the actual bank balance matches the Statement Balance
in Xero.)
4. Actual bank balance (The Statement balance should match the actual bank account
balance from online banking, to reconcile the bank. The most common reasons for a
difference between the two balances are: The conversion balance for the bank
account hasn't been saved or is incorrect; Missing or deleted bank statement lines;
Duplicate bank statement lines)
5. Conversion balances (Navigate to the Conversion Balances screen and compare the
opening balance for the bank account with the actual opening bank balance by
logging into online banking. Head back to the Bank Reconciliation Report once
you’ve made sure the balances match as at the Conversion Date.)
6. Statement balance (Use the Bank Reconciliation Summary to compare the online
bank balance with the statement balance at different dates. Make a note of the date
when these two balances don’t match. Click the Bank Statement tab and compare
the statements with the online bank statements. Spot what’s different in the bank
statement in Xero and resolve the issue by deleting or importing statement lines.)
 Statement exceptions tab (If you’re having trouble matching the online bank
account to the statement balance in Xero, click the Statement Exceptions tab from
the Bank Reconciliation report. It shows exceptions such as deleted, duplicate and
marked as reconciled statement lines.)

 Fix errors (Mark transactions as reconciled individually or in bulk. Unreconcile or

Remove & Redo transactions to fix errors.)
 View and fix errors (Access the Account transactions and Bank statements tabs to
view and fix errors.)
1. Navigate (Click the overflow menu and select Account Transactions from the
dashboard.)
2. Bank transactions (Click Status to sort by reconciled or unreconciled transactions.
Click Search to find transactions using the description, contact name, amount or
date. Check the Exact Amount or Date boxes to find duplicate transactions.)
3. Enable (Click the question mark icon and select Enable Mark as Reconciled. Use this
feature when you don’t have a bank feed or an imported bank statement line, for
example when reconciling a petty cash account.)
4. Mark as reconciled (Use this feature when you don’t have an imported bank
statement line, for example when reconciling a petty cash account. Select the
transactions you want to reconcile, click the More menu and select Mark as
Reconciled. This will create a dummy bank statement line. Identify account
transactions that have been Marked as Reconciled by the User tag in the Bank
 Transaction Source column. The Mark as Reconciled feature is only recommended
where the original bank statement data hasn’t been imported.)
5. Unreconcile (Use this feature to unreconcile an account transaction that’s been
reconciled with the wrong bank statement line. Choose the transactions you want to
unreconcile, click the More menu and select Unmark as Reconciled. Unreconciling an
account transaction removes the connection between the transaction and the
statement line. Unreconciling a transaction that’s been marked as reconciled,
deletes the bank statement line.)
6. Remove & Redo (Use this feature to delete account transactions created in error.
For example, duplicate transactions. Select the transactions you want to delete and
click Remove & Redo. This action permanently deletes the transaction and can’t be
undone. Using Remove & Redo on a reconciled account transaction only deletes the
transaction and not the statement line. If the transaction is manually marked as
reconciled, using Remove & Redo will delete both the transaction and the statement
line, which will effect the Statement balance and the Balance in Xero.)
7. Bank statements (Click the Bank Statements tab to view entire Statements or
individual Statement lines. The Source column indicates where the bank statement
lines have come from. Click Search to find statement lines. Use the exact amount
and date options to make the search more specific and find duplicates.)

E.) INVENTORY

GET STARTED WITH INVENTORY IN XERO

 Inventory in Xero (Describe the benefits of using inventory in Xero.)

 About inventory in Xero (Benefit from great features that allow you to track
products and services, saving time in the process.)
1. Save time (Use inventory items to automatically populate transactions. This will save
you time and effort not having to enter the same data multiple times.)
2. Track products (Inventory in Xero keeps track of items the business buys and sells
regularly. Xero will notify you on how many items are left when you add a tracked
inventory item to a transaction. This allows you to see what items the business sells
the most and those to reorder.)
3. Projects (Tasks or expenses that you use regularly in Projects can be set up as
inventory items. This will help you maintain accuracy when creating invoices from
projects.)
4. Inventory reporting (Run various reports to get real time information, such as
changes to the value and quantities on hand of your tracked inventory items.)

 Tracked vs untracked (Select the correct inventory method.)

 Inventory options (There are two types of inventory items, tracked and untracked.
The inventory method you select will depend on how the business operates.)
 1. Tracked inventory (Tracked inventory is a great option if the business keeps
quantities of physical items on hand. Xero will automatically calculate the Quantity
on Hand and Total Value for tracked items.)
2. Untracked inventory (This is a great option to use for services the business offers on
a regular basis, or products you don’t want to track. Xero doesn’t calculate the
quantity on hand or value for untracked inventory items.)
3. Use a combination (If the business offers products AND services, you can use a
combination of tracked and untracked items.)
4. Inventory apps (Inventory in Xero is a basic stock control feature. If the business has
complex inventory needs, we recommend that you integrate with an inventory app
to meet your requirements.)

 Accounting for inventory (Determine what journals Xero posts for inventory.)
 Behind the scenes (Xero uses the average cost method to calculate the value of
tracked inventory. The average cost method is calculated by dividing the total value
of inventory by the total number of items available for sale.)
1. Tracked inventory (Every tracked item has an average cost that’s recalculated each
time you record a purchase in Xero. Average cost determines the cost of goods sold
value.)
2. Record a purchase (Every time you record a purchase and select a tracked inventory
item, Xero will select the inventory asset account by default. Once approved, Xero
posts a journal to the inventory asset account which is shown on the balance sheet.)
3. Record a sale (When you create an invoice for a tracked inventory item, Xero lets
you select an account code. Once approved, Xero posts a journal reducing the value
held in the inventory asset account and increases the cost of goods sold value. The
Cost of Goods Sold account is shown on the Profit and Loss report.)
4. Untracked inventory (When you create an invoice or bill for an untracked inventory
item, Xero lets you select an account code on the transaction. As Xero doesn’t
calculate the quantity or value on hand for untracked items, no journals are posted
to the cost of goods sold or inventory asset accounts.)

SET UP INVENTORY IN XERO

 Set up inventory accounts (Add inventory accounts before setting up tracked inventory.)
 Add accounts (If you’re using an alternative chart of accounts to the Xero default,
you’ll need to create inventory asset and cost of goods sold accounts. These
accounts must be selected on items you want to track.)
1. Go to Accounting, Advanced and select Chart of accounts
2. Click Add Account and select the account type Inventory. It’s not possible to change
the account type of an existing account to inventory, as it’s a locked account.
3. The Account Type, Code and Name are mandatory fields. Enter the details and click
Save
4. Add an account for cost of goods sold. The Xero default chart of accounts uses Direct
Costs as the account type.
  Add inventory items (Add products and services as tracked or untracked inventory
items.)
 Add inventory item (Add inventory items to keep track of the quantity and value of
items on hand and to speed up data entry.)
1. Go to Business and select Products and services. You need Adviser or Standard user
permissions to add tracked or untracked inventory items from the Products and
services screen.
2. Click New Item
3. Enter an Item Code to help find and organise the items. The item code is compulsory
and must be unique. Enter an Item Name to specify the name of the product or
service.
4. Check the box I track this item for items that you want to track the quantity and
value on hand for, then select an Inventory Asset and Cost of Goods Sold account.
The details you enter will flow through to transactions when you select the item
code.
5. Leave I track this item unchecked for products or services you don’t want to track,
for example, monthly web hosting charges. Select I purchase this item or I sell this
item and enter the details. For a product or service, you buy AND sell, select both
and enter the details.

 Add items on transactions (If you have the user permission to approve invoices, you
can add new inventory items while entering a transaction. Just select New Item from
the dropdown menu.)

IMPORT INVENTORY

 Import inventory
 Add items in bulk (Import a maximum of one thousand inventory items using the
inventory items template file. You need Adviser or Standard user permissions to
import inventory.)
1. Go to Business and select Products and services
2. Click Import and select Items
3. Download and open the template file
4. Enter the details. The Item Code is mandatory, shown by the asterisk. Enter the
Inventory Asset and Cost of Goods Sold accounts for items you want to track. Check
that these accounts are set up in the chart of accounts before importing tracked
inventory items. Save as a CSV or TXT file.
5. Click Browse and select the file. Click Continue to import.
6. Xero checks the file and confirms the number of items it will create or update. Click
Complete Import to continue.

 Enter opening balances

  Import opening balances (Import opening balances to set the starting point for
tracked inventory items.)
1. Go to the Products and services screen. Click Import and select Opening Balances
2. Enter a date. If you’re new to Xero, use the conversion date. If you’re an existing
user, select the date you want to start using tracked inventory.
3. Select the account that currently holds the value of inventory [1]. This is the
adjustment account. If you’re selecting a single adjustment account, choose from
one of the options below.: Select the inventory asset account used in conversion
balances, if you’re new to Xero.; Select the account previously used to hold the value
of stock if you’re an existing Xero user. For example, purchases.
4. Download the template and enter the quantity and total value of items on hand.
Enter the account chosen in the adjustment account column. Save as a CSV or TXT
file.
5. Click Browse to select the file, and Continue
6. Review the opening balances and complete the import. Xero moves the value of the
inventory from the adjustment account selected, to the inventory asset account. In
this example, we've used the inventory asset account as the adjustment account
which results in a zero value movement.
7. If you’re new to Xero and are using the inventory asset account as the adjustment
account, enter the opening balances for this account in the Conversion balances
screen.

 Troubleshoot importing items (If the import is unsuccessful, Xero displays an import
summary and highlights the rows that have errors. Use this as a guide to identify and
resolve any error messages.)
1. Invalid accounts (Verify the account code you entered in the template matches an
existing account in the Chart of Accounts. Create an account if the Chart of Accounts
does not include an account code entered in the import file.)
2. Duplicate item codes (Item codes in the import file need to be unique. Using
duplicate item codes will result in an error. Add an additional character to make item
codes unique.)
3. Incorrect column headers (Xero won’t import the file if there’s something wrong
with the structure. For example, a column header has been edited, or removed.
Make sure you don’t edit column headers.)
 Troubleshooting opening balances (The error message you get from Xero, depends
on whether you’re importing the balances for the first time, or updating them.)
1. Avoid customizing (Xero includes data for tracked inventory items in the template
when you download it. Leave the first three column headers as they are. If you edit
these, Xero won't import the file and will display an error message.)
2. Update opening balances (If you entered incorrect opening balances, you can re-
import them with the correct figures. When updating opening balances, keep in
mind any transactions you recorded since the last import. For example, you
imported a quantity of four for item A, and have since sold all four items. In this
 scenario, you won’t be able to reduce the opening balance quantity, as Xero doesn’t
support negative inventory quantities or values. Create an inventory adjustment or
void the sales invoices, if incorrect.)
3. Add data (If you add additional items to the opening balances file, Xero will display
an error message. Create additional items first, before importing the opening
balances file.)

EDIT AND DELETE INVENTORY ITEMS

 Edit inventory items (Edit an inventory item to update details such as the item code,
name or unit price.)
1. Go to Business and select Products and services. You need the Adviser or Standard
user role to edit inventory items.
2. Click the inventory item you want to edit.
3. Click Edit item
4. Changes made to the item code will flow through to existing transactions. All other
changes will impact future transactions only.
5. For tracked items, you can’t edit the inventory asset account if it has an opening
balance, transactions, or an adjustment recorded against it. Click Save
6. Apart from the item code, repeating transaction templates aren’t updated
automatically. Reselect the inventory item on the repeating template to pull through
the new details. Click Save

 Edit items in bulk

 Update items in bulk (Save time by updating multiple inventory items in one go, for
example bulk update the unit price for inventory items that have increased in price.)
1. Go to the Products and services screen, click Export and select CSV
2. Item codes can’t be edited in bulk, as Xero will treat these as new inventory items.
Edit item codes individually from the Inventory screen. Add inventory asset and cost
of goods sold accounts to convert untracked items to tracked. Save as a CSV file.
3. Return to the Products and services screen. Click Import and select Items
4. Click Browse and select the file. Click Continue to import.
5. Xero will confirm the number of new inventory items it will create and update.
Review the changes and complete the import.

 Delete inventory items (Keep the product list up to date by deleting inventory items you
no longer need.)
1. Untracked inventory items (From the Products and services screen, select the
untracked inventory item you want to delete, then click Delete. Xero will prevent
you from deleting an untracked item that’s been used on a repeating bill or invoice
template. Remove the item from the repeating template, then delete. Refer to the
learn more section below for a link to Xero Central on how to do this.)
 2. Tracked inventory items (Delete a tracked inventory item if you haven’t used it on a
transaction. You can’t delete an item if it's been used on a transaction, has an
opening balance or an adjustment.)
3. Historical transactions (Deleting an inventory item removes it from draft or awaiting
approval transactions. The inventory item will be deleted from any approved
transactions you edit and decide to update.)

MAKE INVENTORY ADJUSTMENTS

 New adjustments account

 Create and adjustment account (Add new adjustment accounts, to post inventory
adjustments.)
1. Go to Accounting, Advanced and select Chart of accounts
2. Click Add Account and enter the details. The account type you select will determine
where this account will appear in reports
 Enter adjustments (Enter inventory adjustments for changes in the quantity and value of
tracked items.)
 Adjustment types (There are several reasons to enter inventory adjustments.)
1. Decrease quantity (Enter a decrease quantity adjustment to reduce the quantity on
hand, or write off damaged stock.)
2. Increase quantity (Enter an increase quantity adjustment to increase the quantity on
hand, if a stock count was higher than the quantity in Xero.)
3. Revaluation (Enter a revaluation adjustment if the item has changed in value since
you purchased it. For example, an item has become obsolete and you’re only able to
sell it at a reduced price.)
 Add an inventory adjustment (Post adjustments to reflect changes in the quantity
and value of tracked inventory items. It isn't possible to add inventory adjustments
using manual journals.)
1. Go to Business and select Products and services. You need the Adviser or Standard
user role to create inventory adjustments.
2. Click the tracked inventory item you want to adjust.
3. Click Options and select New adjustment
4. Choose an Adjustment type. Enter the details and click Review Adjustment
5. Review the adjustment details and click Post Adjustment

F.) QUOTES AND INVOICES

INVOICE SETTINGS

 Branding themes (Create and edit branding for invoices to make them stand out.)
 Xero’s template (Customise invoices for different situations. Add branding themes
for different businesses or services to keep invoices relevant.)
1. Go to the organisation menu and select Settings. Click Invoice settings
2. Click the New Branding Theme arrow, and select Standard
 3. Add a name, adjust section titles and measurements, and choose whether certain
areas are shown, such as the business logo or tax number. Connect payment
services and enter terms specific to this theme, if required. Click Save to confirm.
4. View the new branding theme in the list. Click Options to edit, copy, upload a logo,
delete or preview the theme.
 Docx template (Use Xero’s DOCX templates to customise invoices further than the
standard branding theme. Add custom text or images, and redesign the layout of the
document. Refer to the learn more section below for a link to Xero Central on
completing a DOCX template.)
1. Select .docx (Click the New Branding Theme arrow and select Custom .docx. Create a
name for this template. You can create up to 15 DOCX templates in Xero.)
2. Download (Download the ZIP file containing templates for a credit note, invoice,
purchase order, quote or statement. Open a template in Word (2007 or later), and
use the tables to customise as needed. Don’t change headings that are field codes,
ie. <<InvoiceCurrency>>.)
3. Upload (Save the edited template and upload into Xero as an invoice, credit note,
statement, purchase order or quote template type.)
4. View (View saved custom templates under each heading. Unchanged templates
show “Standard Template”, and custom templates show the file name.)

 Payments and reminders (Set invoice payment defaults and connect payment services
to get paid faster. Use invoice reminders to let customers know what’s outstanding.)
 Set invoice defaults (Click Default Settings to enter custom due dates and expiry
dates for invoices and quotes. Define the prefix and sequence number for invoices,
credit notes, purchase orders and quotes.)
1. Payment terms (Set default due dates for bills and sales invoices, to automatically
transfer this information to a transaction. Choose between a set date each month,
or a number of days after the invoice or bill date.)
2. Automatic sequencing (Adjust the number you want Xero to use for the next invoice,
credit note, purchase order or quote. These prefixes and numbers are set by default,
and increment automatically when new transactions are created. Bear in mind that
invoices and credit notes swap between INV- and CN- but the number sequence
continues (eg. INV-0003, CN-0004, INV- 0005).)
3. Outstanding bills (Tick the checkbox to send the customer a link to view their
outstanding bills from within their online invoices, credit notes and prepayments.
This allows them to access the total amount they owe the business.)
4. Quote expiry date (Enter a default expiry date for quotes. Xero displays this date
underneath the sent date on a quote so customers can clearly see how long the
quote is valid for.)
 Connect payment services (Use payment services such as PayPal or Stripe to get paid
faster. Customers can view invoices online and pay securely, when you link to a
payment service.)
1. Invoice settings (Click Payment Services from the Invoice Settings screen.)
 2. Connect service (Click Add Payment Service and follow the steps to connect to Xero.
You must have an account with the service provider, and the Adviser or Standard
user role, to set up a payment service in Xero.)
3. Payment service (The payment service is responsible for the deposit into the bank
account when a customer makes an online payment. Contact the payment service
provider if you need to know when funds will be deposited.)
 Use invoice reminders (Set invoice reminders to automatically chase overdue
payments from customers, or be proactive when reminding customers that
payments are due soon. Click Invoice Reminders from the Invoice settings screen.)
1. Reminders (Tick the checkbox to turn on invoice reminders. Select from the default
reminders, edit a default reminder, or create a custom reminder. You can send
reminders when invoices are overdue, or due in a number of days. Edit the email
message, if required.)
2. Amount (Set an amount threshold for reminders. For example, set that invoice
reminders should only be sent when the invoice is over a certain amount.)

 Email settings (Change the organisation reply-to email address and set placeholders in
email templates to speed up the invoicing workflow.)
 Change the reply-to email address (Add a new reply-to email address for the
organisation, and remove old email addresses.)
1. Click Email settings from the Organisation settings screen.
2. The current reply-to email address defaults to the logged in user. Click Edit to make
changes.
3. Click Add email address, enter the new Reply to email address and give it a name.
Click Add email to continue.
4. Xero sends an email requesting permission for replies to be sent to that person. The
link in the email expires after 14 days of no action. Resend the confirmation email or
Remove the email address from Xero.
 Add and edit templates (Create a new email template, or edit a pre-existing
template to suit the needs of the organisation.)
1. Click Edit on the Templates tab, from Email Settings.
2. Click a row to open and edit an existing template. Select Add email template to
create one.
3. Choose a Type from the menu, and give the template a name. Adjust the email, and
insert any placeholders from the list. These allow Xero to access dynamic
information, instead of manually entering details like customer name, due dates and
amounts owing. Click Save

CREATE AN INVOICE

 Sales Overview (View a summary of invoices and quotes.)

 Use the sales overview (Go to Business and select Sales overview, to view the status
of invoices and quotes.)
 1. New (Create a new invoice, quote, repeating invoice, credit note or invoice an entire
contact group.)
2. Send Statements (Send statements to customers to remind them of all outstanding
invoices or sales activity with the business.)
3. Import (Use the CSV template file to import invoices in bulk.)
4. Search (Find an invoice or quote by searching for a customer name, invoice/quote
number, transaction amount or reference. Narrow down the search to a timeframe,
based on due date or transaction date.)
5. Money in and owing (View the graph for an estimate of money coming in, based on
the invoice due date or expected date. See which customers owe the most and
what’s overdue.)

 Send invoices (Create and send an invoice with attachments.)

 Create and send invoices (Create invoices and send them to customers with files
attached. Add billable expenses to an invoice to pass on an expense to a customer.)
1. Go to Business and select Invoices. Click New Invoice. Or, click the plus icon to create
an invoice from anywhere in Xero.
2. Enter a Contact, Due Date, and add a Reference if required. Xero populates the Due
Date if you’ve set a default in the contact record, or in Invoice Settings. Choose a
Branding theme to use an alternative to the default theme. Click the files icon to add
attachments, such as business terms or warranty information. Once uploaded, select
Include with invoice from the cog menu, to send attachments with the invoice.
3. Confirm the invoice currency, if using a trial or premium plan, and set the tax
treatment. Choose the item(s) you’re invoicing for if inventory items have been set
up, or create a new item. Enter a Description, Account and Tax Rate before you can
approve the invoice.
4. Click Save to submit for approval or to save as draft. Click Approve to confirm the
invoice details and move to the next step. Approved invoices can be accessed from
the Awaiting payment tab in the Invoices dashboard.
5. Preview the invoice, and choose how you want to send the invoice to the customer -
Email or Print PDF. Confirm the attachments and use Invoice Options to make
changes.
 Billable expenses (Assign expenses to a customer when creating a bill to include the
cost on their next invoice. The bill doesn’t need to be for the same customer that the
expenses are being charged to. The option to add billable expenses will show when
the customer is next invoiced.)

 Online invoicing (Send online invoices to improve visibility to customers.)

 Use online invoicing (Send invoices online to encourage customers to view and pay
them faster. Use the Sent column to know when a customer opens the invoice
online.)
1. Email invoice (Email an invoice to encourage faster customer payments. Click Email
on an approved invoice, or from the Invoices dashboard. Review the email message
and click Send)
 2. Invoice (The customer can open the online invoice via a View Invoice button or link
within the email. The customer can click Pay now to pay via a payment service, if
connected. Once paid, Xero moves the invoice to the Paid tab on the Invoices
screen.)
3. Sent/viewed (Track whether customers have opened the online invoice by checking
the Sent column under the Awaiting Payment tab. Xero changes Sent to Viewed and
adds a date and time stamp to the invoice when the customer clicks the online
invoice link in the email. PDF invoices can’t be tracked under the Sent column.)

 Repeating invoices (Create repeating invoices to automatically schedule sending.)

 Add and edit repeating invoices (Use repeating invoice templates to schedule future
invoices to be saved as draft, approved or sent automatically.)
1. Select New Repeating Invoice from the New Invoice drop down on the Invoices
screen.
2. Set the frequency of the repeating invoice, along with a due date and end date, if
relevant. Choose whether the repeating invoices are saved as draft, approved or
approved and sent automatically to the customer. For example, you may choose to
save the repeating invoice as draft if the amount of the invoice changes from month
to month. Complete the details on the invoice as normal.
3. Use placeholders as named markers, where information from Xero displays when
the invoice or email is sent. For example, [Contact Name] will enter the customers
name on the invoice. Click Preview placeholders to see how placeholders inserted in
the Reference and Description fields will appear. Click Save to confirm the repeating
invoice template.
4. Access and edit repeating invoice templates from the Repeating tab on the Invoices
page.

ADJUST AN INVOICE

 Credit notes (Add a credit note to an invoice to adjust the amount due or record a price
adjustment.)
 Add and edit a credit note (Create and attach a credit note to an invoice to account
for a price adjustment or other credit. For example, stock sold that was later found
to be damaged.)
1. Open the invoice that needs crediting. Click Invoice Options and select Add Credit
Note
2. By default, the credit note equals the total amount of the invoice. Review the credit
note prior to adjusting.
3. Enter details about the credit note by updating the Reference or Description fields.
Adjust the quantity of the line items or unit price, if the credit is not for the full
amount of the invoice. Click Approve
 4. View the updated invoice with the credit note attached. Click the Credit Note link to
see the full details, and make edits.

 Edit paid invoices (Adjust an invoice that’s been paid or partially paid, to record a
change.)
 Edit an invoice (Adjust an invoice that’s been partially or fully paid to ensure all
details are correct. It can be useful to do this if the incorrect account code was
assigned. Remove payments from the invoice to make full edits, such as changing
items being invoiced or their descriptions.)
1. Open the invoice. Click Invoice Options and select Edit
2. Edit certain fields, such as account code or tracking. Xero locks other fields, such as
the invoice date, quantity and unit price. To edit these, click Save to return to the
invoice.
3. Click the Payment link on the invoice to be taken to the payment transaction.
4. Click Options and select Remove & Redo to remove the payment from the invoice,
then return to the invoice.
5. Open the Invoice Options and select Edit
6. Change any fields on the invoice as needed. Click Update when complete.

 Process a refund (Make a cash refund against an overpayment, prepayment or credit

note in Xero.; Refund a customer for an overpayment, prepayment or credit note.)
1. In the All tab on the Invoices page, locate the overpayment, prepayment or credit
note to refund
2. Enter the refund details in the Make a cash refund section. Adjust the amount if the
refund is not for the full value of the transaction. Create a reference to easily
identify the transaction in the bank reconciliation. Click Add Refund
3. The invoice remains under Awaiting Payment if it’s partially refunded. Xero moves
fully refunded invoices to Paid. Click the View Overpayment link in the notification to
see the updated payment.
4. See a link to the Cash Refund within the transaction.

CREATE A QUOTE

 Quotes dashboard (Use the Quotes dashboard to see all quotes for the organisation,
and their current status; See all quotes or use the tabs to find quotes of a particular
status.)
1. All (Go to Business and select Quotes. See a list of all quotes for the organisation.
View and sort by status)
2. Draft (View unsent quotes, the total quoted amount of work in draft, and finish the
quotes to send to customers.)
3. Sent (View all emailed quotes. Sort by Expiry to chase quotes expiring soon, or by
Online Quote to follow up with customers who've viewed quotes. Xero adds the tag
Viewed when a customer clicks the online quote link in the email.)
 4. Declined (View the total lost work for the business. Click into a quote to see in the
notes why a customer has declined it. If it was declined in error, click into the quote
and under Options, unmark as declined or copy to a new transaction.)
5. Accepted (View quotes once the customer clicks accept, or the quote is manually
marked as accepted. Sort the list by the Accepted date to get a priority list of which
quotes you should deal with and invoice first. Click Create Invoice, Copy to a new
transaction, Send, Print or Delete the quote.)
6. Invoiced (Tick the checkboxes to open more options. Copy to, Send, Print, Delete or
Unmark as Invoiced from here. Review the quote numbers, and follow up any
missing ones.)

 Create and copy quote (Create a new quote. Copy a quote to an invoice to save time
and promote consistency.)
 Create a quote (Create a quote to provide customers with the costs for goods and
services. You must have the Adviser, Standard, Invoice only Sales or Invoice only
Approve and pay user role to create and send quotes.)
1. Click New Quote from the Quotes dashboard.
2. Search for an existing customer, or create a new one. You must enter a customer
contact and a date to be able to send a quote. Set an optional Expiry date so the
customer knows when the quote is valid until.
3. The Quote number is set by default sequencing in Invoice Settings. Add a Reference
to improve the searchability of the quote in Xero. Select a Theme for this quote to
set how it should look visually.
4. Attach relevant documents using the file icon. Click the cog icon and select Include
with quote for each file you want to send to the customer.
5. Click to Add a Title & Summary. Select an inventory item, if set up. Or, manually
enter details of the goods or services. You must enter a Description to send a quote.
6. Enter Terms of business to include with the quote. Add these to your branding
theme to save time in the future. Click Save and select an option, or Send if you have
the appropriate user role.

 Copy a quote (Copy a quote to another quote, invoice, bill or purchase order, to
ensure accuracy and save time entering data. You must have the Adviser, Standard,
Invoice Only + Approve and Pay or Invoice Only + Sales user role.)
1. Select All from the Quotes dashboard, and find the quote to copy.
2. Open the quote, click Options and select Copy to…
3. Select the type of transaction to copy the quote to, such as an Invoice. Click Create
draft
4. Xero copies the details of the quote to the invoice. Check and complete the invoice
fields. You can edit any of the fields in the new transaction. Click Save or Approve to
finish.

G.) BILLS AND PURCHASE ORDERS

CREATE PURCHASE ORDERS

 View purchase orders (Manage purchase orders from the Purchase orders dashboard.)
 View the dashboard (Use the Purchase orders dashboard to view all purchase orders
for the organisation. Select a tab to find a list of the transactions of a particular
status.)
1. All (Go to Business and select Purchases orders. See a list of all purchase orders for
the organisation. Quickly view their Status. Xero adds a Sent tag when you email a
purchase order to a supplier.)
2. Draft (See a list of all draft purchase orders. If you select Save, Save as draft, Save
(continue editing) or Save & add another when creating a purchase order, it appears
in the this tab.)
3. Awaiting approval (See a list of all purchases awaiting approval. If you select Save &
submit for approval when creating the purchase order, it will appear in this list. Sort
by Date raised to follow up on purchase orders which have been awaiting approval
for awhile.)
4. Approved (See a list of purchase orders you’ve approved and are waiting to be
billed. If you have the right user role, select Approve or Approve & add another
when creating a purchase order, for it to appear in this list. Xero adds a Sent tag
when you email a purchase order to a supplier.)
5. Billed (See a list of all billed purchase orders. Mark a purchase order as Billed, for it
to appear in this list.)

 New purchase order (Create and send a purchase order. Copy a purchase order to
create a bill.)
 Create purchase order (Create and send a purchase order to let suppliers know you
want to buy specific goods or services from them.)
1. Click New Purchase Order. You can also use the + icon to create a purchase order
from anywhere in Xero.
2. Enter the Contact name. Select from the existing contact list or create a new
contact. Select a Delivery Date to let the supplier know when you’d like to receive
the item from them. Add a Reference to improve the searchability of the purchase
order in Xero.
3. Select an Inventory item, if set up. Xero completes the Description, Unit price,
Account and Tax rate fields with the information saved against the inventory item.
Or, manually enter details of the goods or services you’re purchasing. Confirm or
change the Delivery Address
4. Click Add a new line to add more items to the purchase order. Click the X to delete
an unwanted line item. You can drag and drop the line items to reorder them.
5. Select Save if you’ve not finished, or Save & submit for approval if you don’t have
permission to approve. Select Approve or Approve & add another if you have
permission.
 Send a purchase order (Email approved purchase orders directly to suppliers from
Xero. You can customise the email message that goes with them.)
 1. Select the Approved tab from the Purchase order dashboard.
2. Open an individual purchase order and select Send. For multiple purchase orders,
select the checkboxes and click Send
3. Check the details and edit the email text if you need to. Click Send
 Copy a purchase order (Copy an approved purchase order to a new bill to record an
upcoming payment to a supplier for items you've received. Copy multiple purchase
orders to a single draft bill for each supplier, with all line items from the original
orders.)
1. Select the relevant tab, for example Approved, from the Purchase order dashboard.
2. Select a single purchase order, or tick the checkboxes for multiple purchase orders.
Click Copy to
3. Select a transaction, for example Bill. Click Create draft. Xero will create a bill
transaction, which will contain the details of the purchase order it was copied from.

CREATE BILLS

 Bills Dashboard (Email bills straight into Xero and manage them from the Bills to pay
dashboard.)
 View the dashboard (See a summary of all bills and their status. Use the tabs to find
a list of bills of a particular status.)
1. All (Go to Business and select Bills to pay. See a list of all bills for the organisation.)
2. Draft (See a list of all draft bills. Select Save as draft, Save (continue editing) or Save
& add another when creating a bill to appear in this list.)
3. Awaiting Approval (See a list of all bills awaiting approval. Select Save & submit for
approval when creating a bill to appear in this list.)
4. Awaiting Payment (See a list of approved bills awaiting payment. View the Schedule
of Planned Payments, if any have been set.)
5. Paid (See a list of all bills which have been paid. You must reconcile or add a
payment against the bill for it to appear in the list.)
6. Repeating (See a list of all repeating bill templates created. Edit a repeating bill by
clicking on the bill from the list. The repeating bill shows in the Draft or Awaiting
Payment tab, depending on how it was set up.)
 Email bills to Xero (Xero automatically creates a draft bill when you forward PDF bills
to a unique email address. Reduce processing time by extracting key information
and populating the total, bill date, due date (if specified), reference and supplier
fields.)
1. Navigate to the Bills dashboard and find the unique Xero Bills email address. Copy
this address and save it as a contact in your email address book to save time.
2. Email the bill. The PDF needs to be an email attachment, not an image in the body of
the email. Xero attaches the PDF to the bill, and disregards the email itself.
3. Open the bill from the Draft tab. Xero opens the PDF side by side to the bill so you
can easily enter the bill details. Check the suggestions in the captured data fields.
Complete the remaining fields, then Save or Approve the bill. You must have the
Approve and pay, Standard, or Adviser user role to Approve bills.
 New Bill (Create a new bill for a purchase and attach supporting documents.)
 Create a bill for purchases (Create a bill for purchases in the organisation’s default
currency or a foreign currency, if using a Premium subscription.)
1. Click New bill. You can also use the + icon to create a bill from anywhere in Xero.
2. Enter the contact name in From, and set dates. Add a Reference to help search for
the bill in Xero. You can set default information for individual suppliers under the
Contacts tab, including tax setting, account and tax rate.
3. The bill defaults to the organisation's base currency. Click the drop down to select a
currency that's been setup, or add a new currency. Xero applies the real time
exchange rate from xe.com for any foreign currency selected. You can edit this
exchange rate if an alternative is required.
4. Select an existing inventory item and Xero populates the remainder of the line for
you, but you can change these suggestions. Add a new inventory item, or enter the
details manually. Drag and drop the line items to reorder them.
5. Click the file icon to attach relevant documents to the bill. Drag and drop files, or
click Add from file library. Select the checkboxes for the relevant files you want to
attach from the Files inbox, and click Add. Or select Upload files to attach documents
from your computer.
6. Select Save if you’re not finished. Find the bill in the Draft tab to continue. Select
Save & submit for approval if you don’t have permission to approve the bill, and it
shows in the Awaiting approval tab. Once saved, you can email and print the bill.
7. Select Approve if you have the required user role. The bill shows in the Awaiting
Payment tab. Once approved, you can apply existing credits for the supplier to the
bill, pay the bill and reconcile it in the bank account.

 Repeating Bill (Create and edit a template for a repeating bill to save time when
processing.)
 Create templates (Create a repeating bill from the Bills dashboard to automate and
save time. You need the Adviser, Standard, Invoice only + approve, or Invoice only +
purchases user role to create templates for bills.)
1. Click New Repeating Bill from the Bills dashboard. To edit an existing repeating
template, select the template from the Repeating tab.
2. Enter or edit the information in the Repeat transaction fields. All fields are
mandatory except End Date and Reference. Select the status of the repeating bill
from Save as Draft or Approve.
3. Enter the bill details and click Save. If you're editing an existing template, Xero
applies the changes to all future transactions.
 Use a placeholder (Use a Placeholder to update text fields automatically and save
time. Apply +/- calculations to the options in the drop-down menu to create a
placeholder in the Description and Reference fields. When you create the bill, you
can update the placeholder information. You can Preview Placeholder before you
Save.)
  Billable expense (Record a bill as a billable expense to a customer.)
 Assign as a billable expense (Billable expenses are costs that you want to recover
from a customer. Assign expenses you want to recover when entering the bill from a
supplier.)
1. Open a new or draft bill. Click Assign expenses to a customer or project. You can
assign specific line items to different customers.
2. Start typing the customer name and select from the dropdown menu. Choose
Decide customer later if you need to. Click OK, then Save or Approve the bill.
3. When invoicing the customer in future, you’ll have the option to add the expenses
to their sales invoice. Tick the checkboxes and click Add items.
 Outstanding billable expenses report (Select the Billable Expenses - Outstanding
(New) report to display outstanding items that have been assigned as billable to
customers. Xero will display unassigned billable expenses at the top of the report.
The Standard + All Reports, Adviser or Read Only user roles can run this report. Find
this report under the Purchases section of Reports.)

SCHEDULE BILL PAYMENTS

 Purchase overview (Gain visibility over the organisation’s purchasing process using the
Purchases overview, and find out when the organisation needs to pay bills.)
 View the purchases overview (View a summary of the organisation’s bills and
purchase orders, and their status. Go to Business and select Purchases overview.)
1. New (Quickly create new bills, credit notes and purchase orders.)
2. Bills (See a summary of bills. Click See all to go to the Bills dashboard. Monitor the
status of bills using the panels. Click the panels to view individual transactions that
make up the totals.)
3. Upcoming bills (Use the bar graph to view bills that are paid, awaiting payment and
scheduled to be paid. Roll over a bar to see a summary for that day, click on the bar
to view the bills that make up the total. Blue bars show awaiting payment bills with a
due date, or planned payment that day. Green bars show bills marked as paid and
any future payments the organisation plans to make on that day.)
4. Purchase orders (See a summary of purchase orders. Click See all to go to the
Purchase orders dashboard. Monitor the status of purchase orders using the panels.
Click the panels to view individual transactions that make up the totals.)
5. Search (Use Search on the Purchases overview to find transactions already entered.
Depending on your user role, you can search for all transactions or only those you've
created.)

 Create payments (Schedule payments to manage cash flow more effectively. Create
batch payments to pay multiple bills in one transaction.)
 Schedule bill payments (Manage cash flow by knowing what bills to pay and when.
Add a planned date to bills you want to pay on a certain date, such as bills you’ve
negotiated with the supplier to pay after the due date.)
1. Go to Business, and select Bills to pay
 2. Select the Awaiting Payment tab.
3. Select the bills you’d like to schedule payments for. Click Schedule Payments and
choose a date.
4. Xero adds the date to the Planned Date column. Click the column heading to sort the
bills by planned date. This date overrides the due date of the bill in the Upcoming
bills graph. View totals for each day in the Schedule of Planned Payments, and click
the entires to view the bills that make up the totals.
 Create a batch payment (Use batch payments to bundle multiple bills into one
payment transaction. You’ll need the Standard, Adviser, Invoice Only + Approve and
Pay or Invoice Only + Purchases user role.)
1. Go to the Awaiting Payment tab and select the bills you’d like to pay. Sort bills to
group them together and easily select them for batch payments. If you want to see
more bills select the Showing items per page menu at the bottom of the page.
2. Click Batch Payment. Click OK to confirm the number of items.
3. Enter the details in the batch payment fields. Xero populates the Bank Account and
Details columns, if the details are on the contact’s record. Select a Payment Date
and Bank Account, then click Make Payments. Xero marks the individual bills as paid
and creates an account transaction for the total amount.
4. Click Export Batch File to export the payment file and upload it to the bank. The bank
processes the file and pays the bills in the batch.

H.) ADVANCED TOOLS

FIND AND RECODE

 Use find and recode (Search for and recode transactions individually or in bulk.)
 Recode options (Find and recode up to 2000 transaction lines at once, by recoding
the source transaction or with a manual journal.)
1. Source transactions (Xero makes changes directly to the individual line items on
transactions, which can’t be undone. Recode the transaction lines or edit the
individual transactions, to revert the changes. Recoding source transactions is a
quick and easy way to make corrections to paid transactions, without the need to
remove payments.)
2. Manual journal (Xero creates a draft journal for the changes, which won’t affect the
original transaction. Post the journal to reflect the changes in the general ledger.
Recode with a manual journal to reflect corrections in the general ledger on a
different date to the original transaction. For example, if it relates to a previously
closed period that you don’t want to change.)
 Find transactions (Filter transaction lines matching or excluding certain conditions,
before recoding. For example, find transaction lines associated with a specific
account or tax rate.)
1. Go to Accounting, Advanced and select Find and recode. You need the Adviser user
role to access Find and recode.
2. Click Find & Recode
 3. Select All to find transaction lines that match all conditions. Select Any to find
transaction lines that match at least one condition
4. Click Add a condition and select a search condition.
5. Enter details for the condition. For example, to find sales invoices, select Type Is
Sales Invoice
6. Click Add a condition to add another, if needed. Click the X icon to remove one. Then
click Search. Xero won't display transactions dated on or before an all users lock
date. Review the lock date and adjust in Financial Settings, if needed.
 Recode transactions (Recode contacts, account codes, tax rates, and tracking to
correct transactions in bulk, and keep the accounts accurate.)
1. Select one or more transactions to recode from the search results. Click a
transaction line to view it.
2. Click the Recode menu and select Recode source transactions or Recode with a
manual journal.
3. Enter the Contact (source transaction only), Account or Tax Rate you want to recode
to. Click Add to recode tracking. Recoding the tax rate can change the unit price, but
the transaction total remains the same.
4. Click Review to view a summary of the changes.
5. If you've selected Recode source transactions, click Confirm to complete the recode.
6. If you’ve selected Recode with a manual journal, click View Manual Journal to create
and view the journal.
7. Change the details, if needed. Save as draft or Post the journal to complete the
recode.
8. View the history of recoded transactions from the Find & Recode screen. Click
Summary to view details about a recode, or click the links under Status to view
posted and draft journals. Xero also displays information about the recode and pre-
recoding details in the History & Notes section of a transaction.

 Capabilities (Recognise the capabilities of Find and recode; Find and recode a number of
supported transactions and their details. Recoding can result in significant changes to
accounts and reports. Therefore, Find & Recode is only available to Adviser users, and
only recommended if you have experience with recoding.)
1. Supported transactions (You can recode invoices, bills, credit notes, spend and receive
money transactions, prepayments, expense claims and manual journals.)
2. Exclude transactions (You can't recode fixed assets, purchase orders, quotes, bank
transfers, overpayments or payroll transactions. You can only recode transactions in a
foreign currency with the source transaction option. You can't recode voided
transactions.)
3. Supported fields (You can recode the account code, tax rate, contact or tracking on
transactions. You can only recode contacts with the source transaction option. You can't
search for archived contacts.)
4. System accounts (You can't recode some locked system accounts, including accounts
receivable and payable, tracked inventory and bank accounts. Xero uses locked system
 accounts for specific reporting or accounting purposes. You can't manually adjust them,
to ensure the integrity of the balances.)

MANUAL JOURNALS

 Add manual journals (Add or import journals and post them in bulk.)
 Add a journal (Add a journal to make adjustments to the general ledger, or when
you can't add or edit transactions. You need the Adviser or Standard + All Reports
user role to add and post manual journals in Xero.)
1. Go to Accounting, Advanced and select Manual journals, if you have the Adviser user
role. Access the Manual Journals screen or add a new journal from the Journal
Report if you have the Standard + All Reports user role.
2. Click New Journal
3. Enter the journal details. Add a journal title in the Narration field and choose
whether to use it as the default journal line descriptions. Tick to show the journal on
cash basis reports, such as the Statement of Cash Flows. Set an auto reversing date
to reverse the journal automatically on a selected date.
4. The total debits and credits must agree before you can post the journal. Save as
draft if you’re likely to make changes, or post the journal to the general ledger.
 Import multiple journals (Add multiple draft journals at once using a CSV import
template. This is useful for large adjustments, such as accruals or depreciation.
Import up to 300 lines at a time.)
1. Click Import from the Manual Journals screen.
2. Download the template file
3. Columns with an asterisk (*) are mandatory. Don't delete or re-order any columns.
Use the date format dd/mm/yyyy or dd mmm yyyy, for example 31/08/2018 or 31
Aug 2018. Enter a different narration and/or date for each separate journal you
want to create, or enter the same narration and date to create a single journal.
Positive amounts are debits and negative amounts are credits. Save as a CSV or TXT
file.
4. Click Browse from the Import Manual Journal screen, and select the file. Click Import
to upload. Xero will let you know if there are any errors in the file. Correct the errors
and upload the file again. Then click Import.
5. Review the message and click Complete Import. The journal/s will appear on the
Draft tab of the Manual Journals screen, ready to be posted.
 Post journals (Post draft journals to reflect the entries in the general ledger. Select
one or more journals from the Draft tab on the Manual Journals screen, then click
Post)

 Journal options (Perform a number of different tasks including copying, voiding and
editing manual journals.)
 Journal options (Use the Journal Options menu to perform a number of different
tasks with manual journals.)
 1. Repeat (Select Repeat in any posted or archived journal, to create a new repeating
journal. Automatically create journals on a weekly or monthly series, for a specified
period. For example, to account for the recognition of revenue on a monthly basis,
where the business received a total annual subscription payment in advance.)
2. Reverse (Select Reverse to create a new journal that reverses the effect of a posted
or archived journal, on a specified date. For example, reverse a journal you posted
for month end accruals on the first day of the following month. Reversing a journal
doesn't affect the original journal.)
3. Void (Void journals to remove the line items from the general ledger, on the same
date as the original entry. For example, if you posted a journal in error and need to
remove it. Select one or more journals from the Posted tab on the Manual Journals
screen, click Void, then OK. Alternatively, select Void from the Journal Options menu
in a posted journal. Xero moves the journals to the Voided tab and you can’t restore
them.)
4. Delete (Delete draft journals to completely remove them from Xero. Select one or
more journals from the Draft tab on the Manual Journals screen. Click Delete, then
OK. You can’t restore deleted draft journals. You can’t delete posted manual
journals, only void.)
5. Copy (Select Copy in any journal, to save time when creating a new draft journal
with the same or similar details.
6. Edit (Select Edit in a posted journal, to change its details. Editing a posted journal
reverses the original general ledger entries and posts the journal with the updated
details. To edit draft and repeating journals, click into them from their respective
tabs. You can’t edit voided or archived journals.)
7. Archive (Archive journals that you want to remain posted, but no longer want to see
on the Posted tab. Select one or more journals from the Posted tab on the Manual
Journals screen, click Archive, then OK. Xero moves the journals to the Archive tab,
where you can restore them, if needed.)

 Repeating journals (Automatically create weekly or monthly journals for a specified

period.)
 Add a repeating journal (Set up repeating journals with placeholders to
automatically create journals in a weekly or monthly series, for a specified period.
For example, to account for the recognition of expenditure on a monthly basis,
where you’ve paid a total annual insurance policy in advance.)
1. Click New Repeating Journal, from the Manual Journals screen.
2. Set the first journal date, the frequency and the last date Xero should generate the
journal.
3. Select Save as Draft to review the journal before posting, or if the amount changes
each time. For example, when making regular month end adjustments to the same
accounts, but for varying amounts. Select Post for Xero to automatically post to the
general ledger, if the journal remains the same each time.
4. Enter a narration, or insert placeholders to automatically apply week, month and/or
year detail, based on the journal date. Add or subtract within the placeholder to
 change it’s value. For example, a journal dated Aug 2018 with a placeholder of
[Month-1] [Year], will display July 2018. Choose whether to use the narration as the
default journal line descriptions
5. Click Preview placeholders to see how they’ll look.
6. Xero reports manual journals on an accrual basis by default. Tick to show the journal
on cash basis reports, such as the Statement of Cash Flows. Enter the journal line
details, then click Save
7. View all the repeating journal templates set up for the organisation from the
Repeating tab on the Manual Journals screen.

 Journal report (Run the Journal Report to view the entries made in the general ledger.)
 Run the journal report (Run the Journal Report to view the entries Xero makes in the
general ledger when you post manual journals, and approve or edit transactions.)
1. Go to Accounting and select Reports
2. Click Journal Report. You need the Standard + All Reports, Adviser or Read Only user
role to access this report.
3. Select a date range and choose how to order the results. The Journal date is the date
you've given the manual journal or transaction. The Journal ID is a unique sequential
number Xero assigns each journal in date order, based on when you enter a journal,
edit or post a transaction.
4. Click to show tracking options you’ve applied to journals and to show posted manual
journals only. Leave the Show Posted Manual Journals Only option unticked to
display the entries Xero makes when you approve or edit transactions, such as
invoices and bills. Xero won’t include purchase orders and quotes as they don’t
affect the general ledger.
5. Click Update to view the report.

MONITOR AND MANAGE DATA

 Assurance dashboard (Use the Assurance Dashboard to monitor the accuracy and
integrity of financial data within an organisation.)
 Assurance dashboard (Adviser users can use the Assurance Dashboard to help
identify errors in Xero, or potentially uncover activity which may not be in the
interests of the business.)
1. Access (Go to Accounting, Advanced and select Assurance dashboard)
2. User activity (View a list of users, their user role and an activity heat map, to keep
track of what they’re doing in the organisation. The heat map shows when a user
last logged in and their activity for the past year, with each square representing one
day. Hover the mouse over a blue square to view the date and time period of
activity, items created or edited and the quantity of each item.)
3. Bank accounts (View a list of bank accounts with deleted statement lines or marked
as reconciled transactions, to help ensure bank accounts are in balance. For
 example, if there are deleted statement lines, the statement balance may not agree
with the actual bank balance.)
4. Contacts (View contacts with the same bank account or whose bank account has
been edited, to ensure the accuracy of batch payments made to suppliers. This helps
identify any errors or potentially fraudulent activities where funds for multiple
suppliers are being directed to a single bank account. Click on a contact to view it
and make changes if necessary.)
5. Invoice & bills (View a list of invoices and bills that have been backdated by more
than 30 to 365 days, to spot any errors with data entry. Backdating could be
legitimate or could indicate that someone has attempted to manipulate records.)

 History and notes (View an audit trail of the actions made and notes recorded against
transactions in an organisation.)
 History and notes activity (The history of actions and notes are displayed below each
transaction in Xero. For example, the History & Notes section of a paid invoice shows
the creation, approval, paid and sent dates, and any notes. Adviser users can run the
History & Notes Activity report to view a summary of these actions and notes made
by all users.)
1. Go to Accounting, Advanced and select History and notes
2. Select a period to run the report for, or choose a custom period. The options run
backwards from today's date. The report is run off the user action date, not the
transaction date.
3. View All items or filter by specific items. Only Adviser users with Payroll admin
permissions can view payroll transactions.
4. View all user activity or filter by active and archived (deleted) users. You can add an
unlimited amount of users in Xero, so it’s good practice to ensure that all users have
their own login. That way you can see exactly who did what and when.
5. Click Update. Xero displays the 1000 most recent items.
6. Click the column headers to sort the results. Enter letters or words from any of the
columns to further filter the results. For example, enter the word ‘approved’[1] to
show all approved actions

 Export accounting data (Export data from Xero for importing into other accounting
products.)
 Export (Adviser users can export general ledger data from Xero to import into other
accounting products and tax authorities. This might also include files like the chart of
accounts and trial balance.)
1. Check that all bank accounts in the chart of accounts have account codes. Banks that
are added from the bank accounts screen do not have codes. Click on the account
name from the Chart of Accounts screen, to edit the bank account details if needed.
Without codes, the data may not import into another product.
2. Go to Accounting, Advanced and select Export accounting data
 3. Select a product. The list is grouped by file types, such as general ledger and trial
balance. This list may look different, depending upon the region the organisation is
based in.
4. Select the Date range, then click Download

I.) REPORTING

CUSTOMISE REPORTS

 Access reports (Find reports and add them to the favourites list to get quick access; Find
any report using the search function on the Reports screen. Get quick access to reports
you use regularly by adding them as favourites. You need to have the Adviser, Standard
+ Reports or Read Only user role to access reports.)
1. Go to Accounting and select Reports
2. Click More reports to find a report manually, or use the search option to quickly find
the report you want.
3. Click the star icon next to a report you want to add as a favourite. Xero will show
reports that have been marked as a favourite, with a blue star
4. View favourite reports in the Accounting menu.

 Refine reports (Apply report settings, group accounts, add formulas and apply switch
rules to get the most out of new financial reports.)
 Report Settings (All new version reports contain a report setting feature that allows
for greater customisation. Use report settings to refine a report with quick options,
allowing you to efficiently change what a report displays.)
1. Go to the Reports screen and use the search option to quickly find the report you
want. Click the report to open it. For example, Account Transactions
2. Use the date picker to select a defined period, choose Custom to set a specific date
range for the report. Click Report Settings to change what the report displays.
Report settings may look different and provide different functionality from report to
report.
3. Choose the Accounting Basis and change the layout to group or summarise the
report. Add or remove columns such as a Running Balance, and add filters to refine
the results. Use Report Settings in the Profit and Loss (New) report to add a
percentage of sales column.
 Add rows (Use the Edit Layout feature to add rows to show formulas for analysis,
add groups to minimise information to a summary, or change the position of a
balance on a report. In this example we will use the Profit and Loss report.)
1. From the Profit and Loss report click Edit Layout
2. Click Rows and select Group. Add groups to minimise the data shown on reports
through a summary line. This is useful if you’ve used a sub-account structure in a
prior software package.
 3. Name the group and choose whether the balance should show as a Debit or Credit
positive, based upon what data will display on the report. Drag accounts to the new
group, and click the arrow to show the group expanded or as a single line on the
report.
4. Apply a switch rule to a group that may have a positive or negative balance, For
example, an account code used to record the disposal of an asset. Select the group
you want to edit, then click Add Switch Rule
5. Select whether the switch rule will apply to items in the group or the entire group,
and where Xero should place them on the report. For example, when there is a gain
on disposal, move the account to Other Income.
6. Click the Rows icon and select Formula, to add performance statistics such as a profit
percentage to a report.
7. Enter a Name as you want it to appear on the report. Click Insert and select a group
total or formula line. Add the relevant function to create the formula. Click Done to
return to the report to see the updated layout.

 Compare amounts (Add columns to compare budgeted amounts, past periods or

tracking categories. Add notes to provide commentary with the report.)
 Add columns (Add a budget, past period, tracking or a percentage column to provide
comparative amounts and aid in comparing the business performance.)
1. Click Edit Layout in the Profit and Loss report.
2. Click Columns and select Date to compare data for a given date range, with the data
in the report. This is useful when looking at how the business has grown over set
periods.
3. Click Columns and select Budget
4. Select a Budget and the Date Range you want to represent on the report and Name
the column. You can add multiple budget columns to draw detail from different
budgets created within the Budget Manager.
5. Select Percentage to add a column that shows what percentage of the selected
group total each figure represents. Select a column and a row to show as a
percentage.
6. Compare data for tracking categories, if set up. Click Columns and select a tracking
category, for example Region
7. Select a tracking option to further refine reporting. This is useful when comparing
the profitability of different regions or departments in the business. For example,
add a column for each region, North, East, South and West. Click Done to return to
the report with the additional columns added.
 Add notes (Add notes to the report as a whole or linked to specific amounts, to
provide an explanation to support the business performance.)
1. Click Edit Layout
2. Click Text to add a text block to the bottom of the report. Use this to make general
notes about the report, or link notes to specific figures on the report.
 3. Click Columns and select Notes to link amounts on the report to notes in a
numbered text block. Click the row you want to add the note to, and select the
numbered text block from the Select Link Target menu.
4. Click Done to return to the report.

 Save reports (Create default layouts, publish and export reports to share with other
users, or use again at a later date.; Publish or save reports as custom or draft, to access
them at a later date.)
1. Save as draft (Click Save As and select Draft to save a report you haven’t finished
working on. For example, you may need to add extra analysis.)
2. Publish reports (Select Published to create a finalised, read-only version. Xero adds a
date and time stamp to published reports. Access published reports via the
Published tab. Future transactions won’t impact these reports.)
3. Custom reports (Select Custom to save a report layout so you can reuse it in the
future. Access custom reports from the Custom tab.)
4. Default layout (Set a custom layout as the report’s default view for all users.)
5. Find saved reports (From the reports screen click the Custom, Drafts, Published or
Archived tabs to access saved reports.)
6. Export reports (Share reports with others by exporting as a pdf, google sheet or an
excel file. You can archive old published reports or delete any published in error. You
can restore archived reports from the Archived tab to move them back to the
Published tab.)

BUSINESS PERFORMANCE

 Budget Manager (Add and compare budgeted figures with actual business performance
to help you plan and make decisions.)
 Add a budget (The business can only have one overall budget, but can add additional
budgets as needed.)
1. Go to Accounting, Reports and select Budget Manager
2. Use the Overall Budget as the main budget to make plans for the business as a
whole. There can only be one overall budget in an organisation. Create new budgets
to plan for different tracking options or business scenarios, such as growing the
business with a new product line and monitoring this impact on wages. Select Add
new budget
3. Select the tracking category and option the budget relates to, add a name and Save
4. Set the start date. Select a period of Actuals to show on the budget, if required. This
is useful for reviewing trends in past data and to help plan for the future. Select the
time period the budget will cover.
5. Apply a formula to all accounts, or individual rows in the budget by clicking the
green arrow next to a month on the header or row. For example, increase every row
in the budget by 2% to account for inflation. Alternatively, export the budget, make
the changes then import it back into Xero to update the figures.
  Business performance (View and add performance graphs to the dashboard to track
business performance.)
 Business performance dashboard (Business performance graphs show key
information about the business, such as what profit is as a percentage of sales, or
how much of the business is financed by debt. Users with the Adviser, Standard +
Reports and Read Only user roles can view business performance graphs.)
1. Navigate (From the reports screen, search for business performance and click the
report name, or find the report in the Financial section.)
2. Favourites (Click the star next to any performance graphs you’d like to display on the
main dashboard.)
3. Performance graphs (The business performance graphs show calculations based on
the last 12 months. Add, remove or arrange the graphs. Click on a graph title to see
the equation and further detail, or hover over the graph to see detail for a particular
month.
4. Equation details (Hover over parts of the equation to view a detailed breakdown of
the calculation. If the business uses multicurrency, the figures on the graphs use the
exchange rate on the day of the transaction.)

J.) EXPENSE CLAIMS

GET STARTED WITH XERO EXPENSES

 About Xero expenses (Discover the benefits of using Xero Expenses and learn about
different user roles.)
 Xero expenses highlights (Xero Expenses works seamlessly with Xero accounting. It
has all the tools and insights small businesses need to efficiently track and manage
expense claims.)
1. User roles (You control what users can see and do in Xero Expenses. Select one of
three user roles to determine the level of permission each employee has: Submitter,
Approver or Admin.)
2. Mobile app (Download the Xero Expenses mobile app to capture receipts as soon as
you've made a purchase. It's available on iOS and Android mobile devices. Find the
link on the Xero web page, or search for it on your mobile device’s app store.
3. Assign expenses (If the business has enabled Xero Projects, and you’re a Projects
user, charge an expense back to a client project. Or simply assign the expense to a
customer to claim it back from them.)
4. Labels (Xero makes use of labels to group related expenses. For example, create a
label for expenses incurred during a business trip. Other users cannot view your
labels and they won’t show in Xero Expenses reporting.)
5. Itemise (To code separate items on a receipt to different accounts, click Itemise[1].
Then add itemised lines or multiple accounts to the expense.)
6. Currency (If you've spent money overseas, capture the receipts and change the
currency. Xero automatically applies the latest exchange rate from xe.com to
 convert the amount to your base currency. This is available for all Xero business
editions.)
7. Tabs and filters (Use the many tabs available to get greater visibility of your expense
claims. For example, under All filter by user or status to see a specific list of
expenses.)

 User roles and permissions (It's important to know what each role can do in Xero to
select the role that best suits each employee. This ensures staff have the right level
of permissions when working with expense claims.)
1. Submitter (This user can submit and view their own expenses. They can’t see
expenses for other employees, or approve expenses.)
2. Approver (This user can submit and approve their own and others' expenses,
process payments. They can generate expense analytics and reports by employee,
expense code and date range.)
3. Admin (This user has the same permissions as the Approver. In addition, they can
edit the expense settings.)

 Enable Xero expenses (Set up Xero users, expense accounts and receipt analysis.)
 Set up Xero expenses (Once you have access to Xero Expenses, and you’re an Admin
user, you’ll see a three-step setup process. Follow the on screen prompts to
complete the process.)
1. Click Business and select Expense claims
2. Click Get started now
3. To speed up data capture on your mobile device, select Turn on receipt analysis.
Read the information on screen about this feature. If you prefer to enter data
manually each time, select Skip for now
4. Select only those accounts you want employees to use for expense claims. Select at
least one account. Filter the list to review the selected accounts.
5. When you’re done selecting accounts, scroll to the bottom to confirm your
selections
6. The subscriber has automatic access to all the features in Xero Expenses. Select the
checkbox to allow more staff access to Xero Expenses. Xero gives new users the
default Submitter role.
7. Click the default role to change it. Read the role descriptions to make the right
choice. When you’ve assigned roles to all users, update the roles
8. You’ve completed the setup. Now click Get started
 Edit settings (After the setup is complete, you can return to the settings to make
changes.)
1. Click the cog icon to open Expenses settings.
2. If you have Admin permissions, you can see and edit the settings. Otherwise, you’ll
just see your labels
3. Edit user roles, or add more users to Xero Expenses.
4. Edit the list of expenses; add or remove accounts.
CAPTURE, EDIT AND SUBMIT EXPENSES

 Capture and submit (Capture receipts on a mobile device or in Xero, and submit for
approval.)
 Enter receipts on the go (Start by downloading the Xero Expenses app on your
mobile device. The steps outlined below show the perspective of a user with the
Submitter role, using an iOS device.)
1. Log in with your Xero account. The first time you log in, you’ll be asked to set your
security preferences.
2. To change the organisation you're connected to, tap the organisation name. If you're
in the right organisation, tap the + plus icon
3. If you have no receipt, tap No receipt. Otherwise, take a photo of the receipt, or tap
the camera icon to upload a photo from your device.
4. Xero automatically crops the image to fit the screen. Tap Original to view the
uncropped version of the image. Tap Retake if you need to take a better photo, or
tap Use photo to continue.
5. If you want to use automatic receipt analysis tap Save for later. Choose Add details
now if you need to enter the receipt urgently.
6. Automatic receipt analysis can take a bit of time. If you selected this option earlier
and you're in a rush, tap the expense to skip the automatic analysis.
7. Tap Fill it out myself and enter the details manually.
 Enter expenses manually (You can also enter expenses directly to Xero online.
Automatic receipt analysis is only available on the mobile app, so you’ll have to
enter the details manually.)
1. Go to Business and select Expense claims. Then click New expense
2. Upload a receipt by clicking Upload, or drag and drop the image from a folder.
3. Enter an amount, description, spent at and account. Enter other optional details, if
required.
4. Click Save draft if you’re not finished, or Submit to send the expense to the
approver. Once you submit an expense, Xero sends a mobile notification to all users
with approver permissions.
5. If you’re an Approver or Admin user, you can create expenses for other staff
members. Just click the down arrow next to your name and select another staff
member
 Edit expenses (Edit or add information about receipts before submitting for approval.)
 Edit expenses before you submit (Even if you’ve enabled automatic receipt analysis,
there may be other details you want to add before you submit an expense. You can
make the changes using the mobile app or in Xero.)
1. Edit (To edit an expense, click the overflow icon and select Edit)
2. Account (To change the account selected by Xero, click x to remove it. Then select a
different account from the dropdown.)
3. Tracking (Add a tracking option that applies to the expense, if you’ve set up tracking
categories in the organisation.)
 4. Assign (Assign an expense to a project or a customer. You'll only see projects if
you've enabled Xero Projects and you’re a Projects user.)
5. Labels (Use labels to group and organise your receipts. For example, create a label
for purchases you made during an overseas trip.)
6. Currency (If the purchase took place in another country, change the currency to
match the receipt. Xero automatically applies the latest exchange rate from xe.com
to convert the amount to the base currency.)
7. Tax (Adjust the default tax settings to match the tax information on the receipt.)

 Split items (Create separate line items when they need to be coded to separate
accounts.)
 Split items on a receipt (Create separate items in the same expense claim, if there
are multiple items on a receipt that need to be allocated to different accounts. Note
that you can only do this online, and not on the mobile app.)
1. Click Itemise
2. This opens the itemised view. Edit the amount for the original item, if required. Then
click Add another item
3. Entering a separate description is optional. Select a different account and enter the
amount that applies. You can also select a different tracking option, and assign each
line item to a customer or project
4. Note that the spent at, date, label and currency information apply to all the items in
a claim.
5. Save as draft or submit for approval. If you save as draft, you can continue to edit
the expense claim before submitting.

APPROVE AND PAY EXPENSES

 Approve or decline (Approve or decline expenses submitted in Xero.)

 Approve or decline an expense claim (Xero notifies Approvers and Admin users
when someone submits an expense claim. They can view the expenses and decide
whether to edit, approve or decline them.)
1. Navigation (Go to Business and select Expense claims)
2. Xero expenses (Approvers and Admin users see a set of tabs, while Submitters only
see a list of their own expenses.)
3. To review (Under To review, Xero displays all expenses submitted by all employees,
including your own. Click Approve or Approve all to quickly approve one or multiple
claims.)
4. View and edit (Click an expense to review it, or click the overflow menu to see more
options. Select Edit to change the information submitted.)
5. Pay (When you approve an expense, Xero automatically creates a bill and moves the
expense to the next tab, To pay. Xero notifies the submitter via their mobile device,
that their claim has been approved.)
 6. Decline (Decline the expense if there’s incorrect or missing information. Enter a
reason for declining, so the submitter knows how to fix it. Xero notifies the submitter
via their mobile device, that the approver has declined the claim.)
7. Resubmit (Xero marks the expense as declined and displays the reason. The staff
member must edit the expense and resubmit for approval.)

 Pay expenses (Pay approved expenses individually or in bulk.)

 Pay approved expenses (You can pay individual expense claims per employee or
multiple claims in bulk. This is currently not available on mobile.)
1. To pay (Under To pay, pay single or multiple approved expenses by employee. Pay
All will show when there are multiple expenses.)
2. Pay one expense (If you click Pay, Xero takes you to the associated bill where you
can enter the payment details. Click Go to Expenses to return to the original expense
claim.)
3. Pay all expenses (If you click Pay All, Xero takes you to the associated bills in the
Awaiting Payment tab under Bills. Click into an expense to pay it individually, or
select the expenses you’d like to pay, and complete the batch payment process.)

VIEW AND MANAGE EXPENSES

 Manage labels (Create and manage labels to group and organise expense claims.)
 Add labels in an expense (Xero uses labels instead of expense reports to group and
organise related receipts. For example, create a label for purchases you made during
a business trip. Then assign this label to all your expenses related to the same trip.
Labels are specific to each user. Other staff members won’t see your labels, and you
won’t see their labels.)
 View and edit labels (Use filters to see expenses for a particular label. Go to settings
to view and edit your labels.)
1. Your expenses (Click Any label and select a label you’ve created, or go to Manage
labels)
2. Manage labels (Xero lists your labels that are currently in use. Create a new label
here or inside an expense claim.)
3. Edit labels (Click the overflow menu to edit, delete, or see the expenses grouped
under each label.)

 View expenses (Use different views in Xero Expenses, to analyse and manage employee
spending.)
 View and analyse expenses (Xero Expenses provides you with different views and
analytics to manage your spending. What you have access to depends on your user
permissions. Submitters only see their own expenses, while Approvers and Admin
users see a set of tabs to view, edit, approve, decline and pay expenses.)
1. Your own (Xero displays all your expenses grouped by status. For example, Declined
and Submitted)
 2. To review (Xero displays all expenses submitted by all employees, including your
own. Click Approve or Approve all to quickly approve one or multiple claims.)
3. To pay (Pay single or multiple approved expenses by employee. Pay All shows when
there's more than one approved expense.)
4. All (Xero displays all expenses entered by you and other employees. Filter the list by
staff member and/or status to narrow down this view. Click the overflow menu to
see what action you can take.)
5. Explorer (Analyse spending trends in the business. Use the filter to view the graph by
account or employee and see where the business is spending money and who’s
spending it. Hover over a bar to see the details.)

K.) XERO PROJECTS

GET STARTED WITH XERO PROJECTS

 Xero projects (Describe the features and benefits you'll enjoy in Xero Projects.)
 About Xero projects (There are some great features and benefits you'll enjoy when
using Xero Projects. You'll gain greater control, flexibility, and visibility of your
projects.)
1. Project overview (Keep an eye on the summary bar. Check how much you’ve
invoiced, the total time and expenses added to the project, and how you're tracking
against the deadline.)
2. User roles (There's no need to worry about users seeing sensitive information or
completing tasks outside of their job scope. Select a user role that determines what
staff can see and do within Xero Projects.)
3. Expenses (Assign expenses you receive as a bill or spend money transaction to
projects, to keep track of actual costs in real time. If you're using Xero Expenses, you
can also attach staff expense claims to a project.)
4. Inventory (If you regularly add expenses or tasks to projects, set them up as
inventory items in Xero. This will speed up data entry and improve the accuracy of
invoices created from projects.)
5. Invoices (Choose how you want to invoice projects. Take a deposit that you can
apply as a credit to a future project invoice, invoice time and expenses, or invoice a
fixed amount.)
6. Quotes (Create a draft project to get a clear idea of the time and expenses involved
before you start work. Then create a quote based on the tasks and estimated
expenses, or based on the project amount.)
7. Mobile app (Download the Projects mobile app to create projects, and enter tasks,
time and expenses while you’re out and about. Try the app for free, if you haven’t
got a login yet. There’s a demo version with data for you to use.)

 Xero subscription (Add Xero Projects to a subscription to enable Projects in the

organisation.)
  Permission needed to add Projects (You need special permissions to add Projects to
an organisation. This depends on who pays for the subscription.)
1. Subscription paid for by the organization (The subscriber can add Projects to the
organisation.)
2. Subscription paid for by a practice (Staff members with access to the billing account
and access to the organisation can add Projects to the organisation.)
 Add projects to a subscription (If you have the right level of permission, you can add
Xero Projects to your subscription. Go to xero.com/pricing to learn how this will
affect the organisation’s pricing plan.)

 Staff access (Assign user roles to staff so they have the correct level of access when
working with Projects.)
 User roles (What a Projects user can see and do depends on their user role.
Compare the different user roles and their permissions.)
1. Limited user (A Limited user can only view projects and tasks. They can view, add
and change their own time entries but not the time entries of other staff members.)
2. Standard user (A Standard user has access to most features of Projects, including
project financials and time entries for all staff members. They won't see staff cost
rates or any cost-related information in Projects reports.)
3. Admin user (An Admin user has full access to Projects, including staff cost rates and
viewing cost information in reports.)
 Give staff access to Projects (If you have Manage users permission, you can change
Projects access for staff members in the organisation.)
1. Go to Organisation Settings and select Users
2. Select the user account you want to edit.
3. Enable them as a Projects user and select the appropriate user role
4. If you don’t want staff members to have access to the accounting parts of Xero,
uncheck Business and accounting. Then they’ll only have access to Projects.

 Staff cost rates (Add a staff member’s cost rate to calculate profitability of projects in
the reports.)
 How to enter staff cost rates (A staff cost rate is how much a staff member costs the
business per hour. It's used to calculate actual costs and overall profitability of
projects.)

1. If you're an Admin user, you’ll see Staff cost rates in the Projects menu.
2. Find the staff member you want to update click Edit. Only users with a Projects user
role will appear in the staff list.
3. Enter how much you estimate this staff member costs the business per hour
4. If you’re an Admin user, you'll see cost information in all Projects reports. Other
users will see an empty cost column.

SET UP A NEW PROJECT

 New project (Create a project for an existing or new customer.)
 Create a new project (Creating a new project is easy. You need to be a Projects
Admin or Standard user to do this.)
1. On the Projects screen click New project. If you're still quoting and waiting to get
started, create a draft project. Otherwise create a project in progress.
2. Start entering the client's name. If it already exists in your contacts select it from the
list, or create a new contact on the fly. Edit the contact at a later stage to add more
details.
3. Enter a descriptive Project name to distinguish it from other projects for this client.
Also add a Deadline to help you track the progress and completion of the project.
4. Add a project estimate. Either select the checkbox to use tasks and expenses you
add to the project for the estimate, or add the project's estimated sale price.

 Add tasks (Create inventory items that you’ll use as common tasks in a project.)
 Use inventory items as tasks (If you have common tasks for projects, set them up as
inventory items in Xero. This will speed up data entry and improve the accuracy of
invoices. To add new inventory items, go to the Business tab and select Products and
services.)
1. Item code (Use a code that easily identifies project tasks, to help you search for
them in a project. For example, use a prefix such as TSK.)
2. I sell this item (You must enable this option so you can use inventory items inside
projects.)
3. Invoicing (Xero automatically adds the account code and tax rate to a Tasks &
expenses project invoice.)
4. I track this item (Tracked inventory is used to manage and count inventory items.
Since you won't be tracking tasks, leave this option unchecked.)
 Add tasks to a project (When adding tasks, enter additional information so that Xero
can calculate the project financials correctly. To add a task to a project, click Add and
select Task.)
1. Task name (Enter a task name. Or, if you’ve created untracked inventory items for
common tasks, start typing an item name and select from the dropdown.)
2. Estimated hours (This improves visibility, as Xero adds a progress bar for logged time
against a task. The progress bar will turn red when you’ve exceeded the estimated
time.)
3. Charge (Charge customers an hourly rate, at a fixed price regardless of hours
worked, or add a non-chargeable task.)
4. Charge rate (If you plan to charge the customer for time spent on the task, enter an
hourly rate or a fixed amount. If you leave this blank and the task is chargeable, any
time entries you add to the task will amount to zero.)

 Edit a project (Copy, delete or change the status.)

 Copy or delete a project (Xero allows you to make copies of existing projects, and
delete unwanted projects.)
 1. Copy a project (Click the menu icon and select Copy project. Xero brings across tasks,
including their chargeable status, charge rates, and estimated hours, which saves
you from entering them from scratch. Expenses, invoices and time from the original
project will NOT be transferred. This function is also available on the Projects mobile
app.)
2. Delete a project (Click the menu icon and select Delete. Admin or Standard users can
delete project entries that don't have time, assigned expenses or invoices. To delete
an active project, first unassign invoices, expenses, spend money transactions, and
move or delete time entries. It's possible to delete a project that has expenses that
were not assigned from a bill or spend money.)
 Change project status (As a project progresses from start to end, change the status
so it appears in the correct tab.)
1. Start project (When you're ready to start the work, find the project in the Draft tab
and click Start project. Xero moves the project to the In progress tab)
2. Close project (When you finish a project, click the menu icon and select Closed. Xero
moves the project to the Closed tab. You can view, delete or restore closed
projects.)

ADD AND EDIT TIME

 Add time (Add time to a task on a project for yourself or someone else.)
 Where to enter time (Xero offers you several options for recording time spent on a
project, whether you're in the office or on the job.)
1. In Time entries (Go to Time entries from the Projects menu. Then select a date and
click New time entry. Select the project and the task you're entering time for.)
2. In the project (In a project, click Add and select Time entry. The project defaults to
the one you're in, but you'll have to specify which task you're entering time for.)
3. In a task (Find the task and click the overflow menu, then select Add time. Xero
selects both project and task for you. Enter the time you spent on the task.)
4. Mobile – add time (On a mobile device, select the project you're working on and tap
the plus icon. Then select the option to enter time and enter your details. The
example below shows an iOS device.)
5. Mobile – timer (On a mobile device, use the built in timer to record the time spent
on a project. Simply start the timer and leave it running in the background while you
work on the task. The example below shows an iOS device.)
6. Mobile – location (Give Xero Projects iOS permission to access your location data;
then add project locations. When you’re within a 100m radius of a location, the app
creates a suggested time entry, which you can save or discard.)
 How to record time (Once you've selected a method to enter time manually, you just
need to enter your details and save. Here are some tips to help you complete a time
entry with all the relevant information.)
1. Time (Use the time buttons or enter a duration manually. On the mobile app, you
can use a slider to set the duration.)
2. Task (Tasks must already exist in the project. Select one from the list.)
 3. Description (Enter a detailed description to help you manage your time entries. The
description will show in the project’s Time tab.)
4. Staff member (Admin and Standard users can add time for other staff members that
have access to Projects.)

 Copy time (Copy time entries on your mobile device.)

 Copy time entries on your mobile device (Add time to a project quickly by
duplicating a similar time entry and changing the date. This function is available on
mobile iOS and Android devices only. The steps below highlight the process on an
iOS device.)
1. Open the mobile app and tap the project that has the time entry you want to copy
2. Scroll down to Time and tap See all
3. Tap the time entry you want to copy.
4. Tap the Copy time entry button. On Android devices, tap the icon in the bottom right
hand corner.
5. Select a date for the new time entry you're about to create.
6. Edit the time entry and tap Save. On Android devices, tap the checkmark icon to
save.

 View and edit time (View, review and edit your time entries)
 The project time tab (To view, edit or delete a time entry in a single project, go to
the project’s Time tab.)
1. View time (Xero groups time entries by week, and displays a weekly total. You can
also see the descriptions and whether the time has been invoiced. Limited users can
only see their own time entries.)
2. Edit time (Go to the Time tab in a project and select the time entry you want to edit.
You won’t be able to change the entry if it’s been invoiced, but you’ll still be able to
see the time entry details.)
3. Move time (To move a time entry to another project, open it and click the x icon to
remove the original project assigned to it. Then select another project from the
dropdown and save.)
4. Delete time (Go to the Time tab in a project and find the time entry. Then click the
menu icon and select Delete. Make sure you select the correct time entry as this
can't be undone.)

 The weekly view (Find the Time entries under the Projects tab. Get a great overview
of all time entries captured for this or any other week.)
1. View time entries (See the time you've entered at any point in time. Click a time
entry to see the details.)
2. Change staff view (Use the staff dropdown to see time entries for another user.
Limited users can only see their own time entries)
3. Change weekly view (This view defaults to the current week. Use the date picker to
change the view to another week, or select a custom date.)
  The staff time overview (Find the Staff Time overview under the Projects tab. See a
list of staff members and the total of their time entries in the date range selected.)
1. Date selection (Xero automatically displays data for the current week. To change the
date selection, click the displayed date and either select a date range or click Choose
range.)
2. Bar chart (Hover over a bar to see the details. Light grey represents non-chargeable,
and dark grey chargeable time entries.)
3. Summary (The summary for the chosen date range displays the total hours logged
across all staff and all projects, the percentage that is chargeable, and the total
chargeable and non-chargeable hours.)
4. Staff breakdown (Click a name to see a breakdown of their time by project. Xero
displays the percentage of the hours they’ve logged as chargeable.)
5. Time entries (Click View time entries to see the staff member’s time entries for the
specified date range.

ADD AND EDIT EXPENSES

 Products and services (Set up products and services to capture common expenses in
Projects.)
 Set up products and services (Use products and services to add costs as expenses on
a project. This speeds up data entry, ensures consistency across all projects, and
improves the accuracy of your invoices.)
1. Item code (Use a code that easily identifies project expenses, to help search for
them in a project. For example, use a prefix such as EXP.)
2. I sell this item (Enable this option to use products and services items inside Projects.)
3. Account and tax (When you create a Tasks & expenses project invoice, Xero
automatically adds the account code and tax information.)
4. I track this item (Select this option if you need to track the quantity on hand and
value of the item.)

 Attach expenses (Assign a bill, spend money transaction or an expense claim to a

project.)
 Assign a bill or spend money transaction (If you receive a bill from a supplier, or
create a spend money transaction, you can attach line items to a project. Follow the
steps below to assign line items in a bill. The same process applies, when assigning
line items in a spend money transaction.)
1. Open a draft or awaiting approval bill and click Assign to customer or project
2. Xero lists all the line items in the bill. You can assign as many line items as you like,
as well as select a different project for each line item.
3. Start typing the customer or project name in the search box. Make sure you select
the project name and not the customer name. If you select the customer name, Xero
attaches the expense directly to the customer and not the project.
 4. Select one or multiple line items and click Assign. If you forget to click Assign, and
click Ok, Xero won't assign the expense to the project you selected.
5. Click OK to confirm your selection.
6. Xero updates the bill and adds the assigned project name to the line item
descriptions. Save or approve the bill.
7. Xero adds the assigned expenses to the list of expenses in the project. The total
amount is tax exclusive.
 Assign an expense claim (If the organisation has enabled Xero Expenses as well as
Xero Projects, staff members with access to both products will be able to charge an
expense back to a project.)
1. Add project to an expense claim (In the expense claim, start typing the project name
and it will appear in the dropdown. Make sure you select the project name and not
the customer name.
2. View expense in the project (Once you approve the expense claim, Xero adds the
expense to the project. Click the overflow menu and select Go to item to see the
associated bill.)

 Add a new expense (Add expenses and track against estimated expenses.)
 Add an estimated expense (Use estimated expenses to plan projects, send quotes,
and track actual expenses against estimates.)
1. Click Add and select Estimated expense
2. Enter a name. If you’ve set up inventory items for common expenses, select one
from the dropdown
3. Enter the Quantity and check the unit price is correct.
4. Click Custom price to select the method you want to use to pass the cost on to the
client. For example, % markup
5. Complete the information needed for the charge method you selected. Then save
6. Xero adds the estimated expense to the project page.

 Add and track an expense (Add expenses and track against estimated expenses.)
 Add and track an expense (Add an actual expense and track it against an estimated
expense, to manage your budget.)
1. Click Add and select Expense
2. Enter an Expense name
3. Click Choose an estimated expense and select the estimate you want to match to
the actual expense
4. Xero copies across the cost information from the estimated expense. Edit the
Quantity and check the Unit price is correct.
5. Check that the charge method from the estimated expense applies to the actual
expense, and change it, if needed. Then save
6. Xero adds the new expense within the estimated expense. Keep an eye on the status
bar to see how your actual expenses are tracking against the budgeted amount.
 Edit or delete an expense (How Xero updates a project depends on whether you're
editing or deleting the expense, and if the expense has been invoiced.)
 1. Invoiced expense (Click the overflow menu. If you’ve invoiced an expense, you can
view it or go to the associated bill)
2. Assigned expense (If you haven't invoiced an expense, you can edit it or go to the
associated bill)
3. Manual expense (You can edit or delete uninvoiced expenses that aren’t associated
with a bill or spend money transaction.)
4. Charge (Edit an uninvoiced expense and choose one of four methods to charge the
client)

CREATE QUOTES AND INVOICES

 Create a quote (Create a quote based on a project and estimates.)

 Add a quote based on project estimates (Create a quote from a project based on the
project amount or tasks and estimated expenses. When the client accepts the quote,
the project is ready for you to get started. Limited users don’t have access to quote a
project.)
1. Start by adding a draft project, and estimate the total cost to the client. To get an
estimate, add tasks with estimated hours, as well as estimated expenses
2. When you’re done estimating, click Quote and select one of two options. Either base
the quote on estimates in the project, or on a project amount
3. If you base the quote on estimates, choose which items you want to include in the
quote. Then select the options that determine how the quote will look. Save and go
to the draft quote to complete it and send it to the client.
4. Complete the quote and send it to the client.
5. Xero adds the quote in the Quotes & Invoices tab. Find your quote and click Open to
view or edit it. When the client accepts the quote, change the project status to In
Progress and start the work.

 Create invoices (Explore the different types of invoices for your projects.)
 How to invoice a project (In Xero Projects, you have a choice of three invoicing
methods. Select the method that best suits the project. For example, if you have a
fixed price agreement with a customer, create a project amount invoice. Limited
users don’t have access to create or view invoices in a project.)
1. Permissions (To invoice a project, you need to be a Standard or Admin Projects user,
and have Xero permissions to create invoices)
2. Create (With the right permissions, you’ll see the invoice button. Select one of three
options. Note that there can only be one deposit invoice per project. If you’ve
already created a deposit invoice, then you’ll only see the other two options.)
3. Deposit Invoice (Create this invoice when you want to request a deposit from a
customer and credit it to a future invoice. Enter a percentage of the project estimate
or a custom amount. Then go to the draft invoice and complete the information. For
example, enter the due date and select an account.)
4. Tasks and expenses (Create this invoice when you want to bill a customer for
chargeable tasks, time entries or expenses. Once invoiced, you can’t delete a task or
 expense, but you can add more time to a task. If you select time entries, use the Line
item details to choose what detail to appear on the invoice. You also have the option
to credit a deposit invoice)
5. Project Amount (Create this invoice to bill a proportion of a fixed price contract that
doesn't affect chargeable tasks and expenses. Enter a percentage of the project
estimate or custom amount. You can also apply a deposit invoice as a credit to this
invoice)

 Assign line items (Assign line items in an invoice to a project.)

 When to assign line items (In most cases, you’ll probably create invoices inside a
project and select one of the three invoicing methods. However, in some instances,
you may want to create a sales invoice in Xero and assign the line items to a project.)
1. Assign existing invoices (If you've created sales invoices in Xero before you started
using Xero Projects, you can assign the line items to your newly created projects.)
2. Invoice based on quotes (If you create quotes, you can create sales invoices in Xero
based on your quote. Then assign the line items to a project. That way you track the
costs in the project so you can report on it, but you invoice based on the agreed
quote.)
 How to assign line items (When you create a sales invoice in Xero, and not in a
project, you have the option to assign individual line items to projects. Before you
click this link, make sure you’ve created the project you want to assign the invoice
to. The same process applies when assigning line items in a sales credit note to a
project.)
1. When adding or editing a sales invoice, click Assign item to a project
2. Xero lists all the items in the invoice. Click Assign to..., to see a list of active projects
you can select for each line item.
3. Search for the project and select it from the dropdown. You can assign as many line
items as you like, as well as select a different project for each line item.
4. Click Okay when you are done assigning line items.
5. Xero updates the invoice and adds the assigned project name to the line items. Save
or approve the invoice.
6. Xero also adds the sum of the assigned line items to the Invoiced total. o view or
edit a project invoice, find it in the list below and click Open

 Edit invoices (Edit invoice line items that are assigned to a project.)
 Edit a projects invoice (If you need to edit an invoice line item assigned to a project,
you have to make the changes on the original invoice. How the project updates
depends on whether you're editing or deleting the line item. Below are three
different scenarios that describe how Xero deals with changes in Projects invoices.)
1. Edit unit price (If you edit the unit price, Xero updates the invoiced total for the
project, and task or expense you’ve invoiced. This affects the amount you’ve
charged and creates a write on/off.)
 2. Change tax (Amounts in projects are tax exclusive. If an invoice changes to tax
inclusive, the project still shows the tax exclusive amount. Xero subtracts the tax
amount from the invoiced total, reducing the invoiced amount in the project.)
3. Delete line item (If you delete a line item in an invoice, Xero reduces the total
invoice amount in the project. If the invoice was created for tasks and expenses,
these time entries and expenses become available to invoice again.)

VIEW PROJECT REPORTS

 Access projects reports (Get access to Projects reports.)

 How to access projects reports (What you can see in the reports depends on your
Projects and Xero user permissions. Users that have Projects Limited access won’t be
able to view these reports.)
1. View report (To view and generate Projects reports, the organisation must be Xero
Projects enabled, and you must either be a Projects Standard or Admin user or just
have Xero access to reports)
2. View cost information (If you have access to Projects reports and are a Projects
Admin user, you’ll see cost related information on all Projects reports. Non-projects
users with access to reports in Xero will also see cost related information.)

 View and refine reports (View Projects reports and refine the report settings.)
 View a report (Use reports to review project financials. Xero adds these reports to
the Reports page when the organisation has enabled Xero Projects.)
1. Projects reports (You can filter the information on a report to show specific data. For
example in the Project Summary report, change the default Project State or Date
Range and click Update)
2. Refine settings (Click Report Settings to refine the settings or apply additional filters.
For example in the Project Summary report, choose which columns you’d like to see
in the reports, or set a filter to view projects that haven’t been invoiced yet.)
3. Project summary reports (This report shows, at a high level, how your projects are
tracking. If you click on a project name Xero takes you to the detailed view for that
project.)
4. Project details report (This report shows a breakdown of tasks, expenses and
invoices for each of the projects. There must be activity (for example time or
invoices) on the project for it to appear on the report.)
5. Detailed time report (This report shows how the team’s time is being spent on each
project. You can see if time logged is chargeable and whether it's been invoiced or
not)

L.) FIXED ASSETS

GET STARTED WITH FIXED ASSETS

  Start date (Select a fixed asset start date before you can set up the register.)
 Set a fixed asset start date (A start date is required before you can add fixed assets
in Xero, and calculate depreciation.)
1. Go to Accounting, Advanced and select Fixed assets
2. Click Set Start Date
3. Select the first day of the financial year[1] you want to start calculating depreciation,
then click Save[2]. This can be: A financial year in the past, starting from the year you
converted to Xero; The current financial year, or the next financial year from now

 Asset types and accounts (Set up fixed asset types and the accounts in the chart of
accounts.)
 Setting up asset types (Asset types group similar assets, to ensure consistent
reporting. Assign an asset type to every fixed asset, and Xero will apply account
codes and depreciation details.)
1. Check that the chart of accounts contains the fixed asset, accumulated depreciation
and depreciation expense accounts you want to assign to the asset types.
2. Add new accounts, if needed. Assign the Fixed Asset account type to fixed asset and
accumulated depreciation accounts, so you can select them when setting up asset
types. Click Save, once you’ve entered all the details.
3. Under Advanced accounting, select Fixed assets settings. You need the Adviser user
role to access these settings.
4. Click New Asset Type
5. Enter the account and depreciation details, then click Save. Refer to the Learn more
section below for a link to Xero Central, for information on depreciation methods.
 Set default accounts for disposing of assets (In Fixed Asset Settings, click Accounts,
and select the default accounts you wish to use for asset disposals. Click Save. Xero
preselects these accounts for all future asset disposals.)

ADD FIXED ASSETS

 Add assets (Add draft assets manually or automatically from purchase transactions.)
 Add an asset from the fixed assets screen (Add assets manually for quick additions to
the register, to reflect existing purchases, or when entering opening fixed asset
balances in Xero.)
1. Go to Accounting, Advanced and select Fixed assets
2. Click New Asset
3. Enter the Asset Name, Purchase Price and Purchase Date. Select an Asset Type or
add a new one. Xero then populates the account and depreciation details. Edit the
Asset Number and Book Value fields, if needed.
4. The remaining fields are optional. Click Show more options to enter a cost limit or
residual value. The cost limit is the value of the asset you want to depreciate, if less
than the cost of the asset. The residual value is the value of the asset remaining
when fully depreciated.
 5. If the depreciation start date is earlier than the fixed asset start date, enter the
amount of accumulated depreciation the asset had, up to the start date.
6. Xero uses this amount to automatically calculate the value of the asset as at the
fixed asset start date
7. Click Save as Draft if you’re likely to make changes, or Register to add the asset to
the fixed asset register.
 Add a draft asset from a purchase transaction (Add an asset from a purchase
transaction if you want it to show in both the register and the balance sheet.)
1. Transaction types (Xero creates a draft asset when you approve a bill, expense claim
or spend money transaction that’s coded to a fixed asset account with a description)
2. Mixing changes (If you edit a transaction to include a fixed asset account after it’s
approved, Xero won't create a draft asset. If you edit or delete an asset from the
register, the transaction won’t reflect this, and vice versa. You need to make the
changes to both the asset and transaction.)
3. Draft assets (The asset will be added to the Draft tab of the register. Complete the
asset details before it can be registered.)
4. See original transactions (The asset contains a link[1] back to the purchase
transaction.)

 Import assets (Import fixed assets in bulk to save time when adding multiple items.)
 Importing draft assets (Xero provides a template for you to import draft fixed assets.
Use this method if you've been using another system to manage fixed assets, or to
add multiple assets to the register at once.)
1. Click Import from the Fixed Assets screen.
2. Download the template
3. Enter the asset details. Columns with an asterisk (*) are mandatory. Xero applies the
default depreciation details to the asset, if you enter an asset type and leave the
book value fields blank. Save as a CSV or TXT file.
4. Return to the Import Fixed Assets screen and select the date format used on the
template. Click Browse to select the file, then Continue.
5. Xero will let you know if there are any errors in the file. Correct the errors and
upload the file again. Then click Import. Imported assets need to be registered
before they appear in the register.
 Tips for completing the template (There are some requirements for entering details
into the template, for a successful import.)
1. Data (Remove the sample data, but leave the header row in place. Don't delete or
re-order any columns.)
2. Asset numbers (The asset number must be unique. Xero will update existing draft
assets that have the same asset number, but won’t import any that match existing
registered assets.)
3. Date formats (You must use one of the following date formats: dd/mm/yyyy
mm/dd/yyyy yyyy/mm/dd)
  Register draft assets (Register assets to add them to the fixed asset register and start
calculating depreciation. Select one or multiple assets from the Draft tab on the
Fixed Assets screen, then click Register)

 Opening balances (Add opening balances and run the Fixed Asset Reconciliation report.)
 Add opening balances (If you've maintained a fixed asset register in a previous
accounting system, enter the opening fixed asset balances in Xero.)
1. Go to Accounting, Advanced and select Conversion balances. Enter the opening fixed
asset balances to show in the balance sheet, then click Save
2. Under Advanced accounting, select Fixed assets and click Set Start Date. If the
conversion date is the start of a financial year, you can set the fixed asset start date
to match this.
3. Add or import the assets from the Fixed Assets screen. If the depreciation start date
is earlier than the fixed asset start date, enter the amount of accumulated
depreciation the asset had, up to the start date. Xero uses this amount to
automatically calculate the opening value of the asset in the register, as at the fixed
asset start date.
4. Select the assets from the Draft tab on the Fixed Assets screen and click Register
5. Go to Accounting and select Reports. Scroll down and select the Fixed Asset
Reconciliation (New) report.
6. Run the report from the purchase date of the oldest fixed asset, to the day before
the conversion date, to check that the asset register agrees with the balance sheet
7. The Fixed Asset Reconciliation report won’t agree if items have been entered in the
asset register, but not the balance sheet, and vice versa. For example, a purchase
transaction hasn’t been entered for a registered asset.

DEPRECIATE FIXED ASSETS

 Depreciate assets (Run depreciation on fixed assets.)

 Run depreciation (Run depreciation to reduce the book value of registered assets.
You need the Adviser user role to run depreciation.)
1. Go to Accounting, Advanced and select Fixed assets
2. Click Run Depreciation. You can’t run depreciation if an 'all users' lock date is set in
the depreciation period. Remove the lock date before continuing.
3. The From date can't be changed. It defaults to the fixed asset start date, or the day
following the last depreciated period. Select a date you want to run depreciation to,
up to an entire financial year.
4. Review the depreciation preview, then Confirm. Click Confirm to advance the
current depreciation date, if there are no assets to depreciate in a period.

 Depreciation schedule (Run the fixed assets Depreciation Schedule.)

  Run the depreciation schedule (Run the Depreciation Schedule to track depreciation,
with opening and closing asset values.)
1. Go to Accounting and select Reports
2. Click More reports to expand the section under Fixed Assets and select Depreciation
Schedule (New)
3. Select a date range from the fixed asset start date onwards, to the date you want to
report up to. If you run it from a date earlier than this, the figures may not be
correct. Click Report Settings to customise the report.
4. Change the layout, add or remove columns and filters. Click Update to view the
report.

MANAGE THE FIXED ASSET REGISTER

 Dispose of assets (Record the disposal of an asset you sold, gave away, or threw out.)
 Dispose of a registered asset (Dispose of a registered asset in the case of a sale or
loss, if you have the Adviser user role.)
1. Enter an invoice or receive money transaction to record the sale of the asset. Ignore
this step if you didn’t sell the asset.
2. Go to Accounting, Advanced and select Fixed assets
3. Run depreciation to at least the financial year of the disposal, before you can record
the disposal in the register.
4. Click the asset number, from the Registered tab.
5. Click Options and select Dispose
6. Enter the date and tax exclusive amount of the sale. Enter 0 if you gave away or
threw out the asset. The Sales Proceeds Account is the account used when recording
the sale. Select whether or not Xero should calculate depreciation for this financial
year. Click Show Summary to review the Disposal Summary.
7. If you make any changes, click Update to see the revised summary. Then click
Review Journals
8. Select the account to use for the gain or loss on disposal, or capital gain. Xero will
preselect the account if you’ve set these in Fixed Asset Settings. Click Post

 Delete assets (Delete an asset to remove it from Xero completely.)

 Delete assets (Delete assets to remove them from Xero. Adviser users can delete
draft assets individually or in bulk, but registered assets can only be deleted one at a
time.)
1. To delete draft assets, select one or more assets from the Draft tab on the Fixed
Assets screen, then click Delete
2. Click Delete to confirm. Deleting an asset created by a purchase transaction won't
affect the original transaction. Change the account code to a non fixed asset type on
the original transaction, or void it, to ensure the Fixed Asset Reconciliation report
balances.
3. To delete a registered asset, click the asset number from the Registered tab.
 4. Click Options and select Delete. Depreciated assets with a depreciation start date on
or before an all users lock date can’t be deleted. Review the lock date and adjust in
financial settings, if needed.
5. Click Delete to confirm. Xero will reverse all depreciation posted for this asset, which
can’t be restored.

 Edit assets (Edit assets individually, or in bulk.)

 Edit assets to update their details. You can edit draft assets individually or in bulk,
but registered assets can only be edited one at a time.
1. Click the asset number to open the asset, from the Draft or Registered[2] tabs on the
Fixed Assets screen.
2. For draft assets, make the changes and click Save as Draft or Register. You need the
Standard or Adviser user role to edit draft assets and only Adviser users can register
them.
3. For registered assets, click Options and select Edit. You need the Adviser user role to
edit registered assets.
4. Make the changes and click Save
5. Xero will roll back depreciation to the depreciation start date and re-calculate it for
the asset if you change the Purchase Price, Asset Type or Book Value fields, except
the Rate. Click Continue, if you made a change that affects depreciation.

 Edit multiple draft assets (Update draft assets in bulk using a CSV template, if they
were imported incorrectly or entered with missing details.)
1. Click Export from the Fixed Assets screen, to download the CSV file.
2. Make the changes to the draft assets. Remove registered and disposed assets, as
these can’t be edited in bulk. Save as a CSV file.
3. Click Import. You need the Standard or Adviser user role to import draft assets.
4. Select the date format used on the template. Click Browse to select the file, then
Continue
5. Xero will let you know if there are any errors in the file. Correct the errors and
upload the file again. Then click Import. Refer to the learn more section below for a
link to Xero Central on entering details into the import template.
 Xero
 April 3, 2020 – December 31, 2021