Finofo and Xero: How the Integration Works

How It Works

From Xero, Finofo uses your supplier contacts and the reference data your team codes with, brought in through the connection, a CSV import or manual upkeep: the chart of accounts, tracking categories and tax rates. Each invoice line in Finofo is coded with those values, so the bill that reaches Xero needs no recoding.

Invoices are captured, read, coded, matched and approved in Finofo. Approved invoices go to Xero as bills with their line coding. Posting follows approval, and how payment records go back is agreed with your Finofo team during setup.

Xero keeps the ledger and financial reporting. The source document, approval history, comments and exceptions stay with each invoice in Finofo.

What Syncs Between Finofo and Xero

• Xero to Finofo: Supplier contacts, each mapped on its Finofo vendor profile.
• Xero to Finofo: Chart of accounts, tracking categories and tax rates.
• Finofo to Xero: Approved invoices as bills, with account, tracking and tax rate on each line.
• Finofo to Xero: Payment records, in the form agreed with your Finofo team during setup.
• Stays in Finofo: The source document, approval history, comments and exceptions.

Set Up the Connection

1. Scope the rollout with your Finofo team: the Xero organisation in scope, the coding dimensions, the approval rules and a set of test documents.

2. Someone with access to your Xero organisation authorizes the connection during setup.

3. Agree the coding dimensions with your Finofo team: which ones each line needs, which are required and which combinations are valid. Reference data comes from your ERP through the connection, a CSV import or manual upkeep.

4. Check that each vendor profile in Finofo holds its ERP mapping, and agree with your Finofo team how payment records are sent back.

Xero Decisions to Settle During Setup

Each area below shows the question to settle, followed by why it matters.

• Organisation: Which Xero organisation, or organisations, does AP cover?
  Each Xero organisation has its own contacts, accounts and tracking.
• Tracking categories: Which tracking categories are used for AP, and are they required on every line?
  Xero allows two active tracking categories, so each one usually carries important reporting.
• Bill status: Should bills arrive as drafts, awaiting approval or approved in Xero?
  Decides whether anyone reviews bills again in Xero before payment.
• Tax rates: Which Xero tax rates cover your suppliers, including GST, HST, PST and QST where they apply?
  Each line needs the right tax rate for your returns.
• Currencies: Are foreign currency suppliers in scope, and does your Xero plan include multi-currency?
  Foreign currency bills need multi-currency in Xero.
• Attachments: Should the invoice file be attached to the Xero bill?
  Keeps the source document with the entry for review and audit.

Fix Common Xero Sync Issues

• A tracking option is missing from coding options: Check that the option is active, not archived, in Xero.
• A bill did not reach Xero: With Manual posting, open Post to ERP: the drawer shows whether the invoice is ready or blocked, and why. Check that the vendor profile holds its ERP mapping. Then check the lock dates in Xero and whether the account or tax rate is archived.
• A foreign currency bill fails: Check that the currency is added in Xero and that your plan includes multi-currency.

Tips

• Archive tracking options you no longer use in Xero before go-live, so coders only see current ones.
• If a cost centre, project and region all matter, decide which two become tracking categories before you connect.
• Use Settings > Notifications to choose what Finofo tells each finance owner about, by email or in app.
• Xero remains the ledger and the place for financial reports and bank reconciliation.

Frequently Asked Questions

How long does it take to connect Xero?

Connecting is quick. The full rollout, including coding dimensions, approvals and test documents, is scoped with your Finofo team, and with a pre-built connector customers have gone live in as little as two weeks.

Can each line have its own tracking category?

Yes. Coding is set per line, so each line can carry its own account, tracking option and tax rate.

Can we pay bills that are already in Xero?

Talk to your Finofo team during setup. Whether open bills already in Xero come into Finofo for payment is part of the integration design, and approved bills can then be paid individually or in a batch.

Where do the tax rates come from?

From Xero. Tax rates are reference data from your Xero organisation, so the rates on each line match your books. Which rates come across is confirmed during setup.

Do approvers need Xero logins?

No. Approvals happen in Finofo, including on mobile.