What is the Xero Integration?
Xero integration supports the automated synchronisation of data between your Panacea clinic and your Xero instance. It is easy to set up and use, although we do recommend that you seek assistance from your accountant or bookkeeper if you're not 100% comfortable with the concepts and methods set out in these help pages.
Once configured this integration will automatically sync the following between Panacea and Xero:
- Clients and suppliers
- 'On account' client invoices
- Daily Cash Up totals for cash sales
- Stock orders (generate invoices in Xero)
- Product and services sales by account in Xero, allowing you to track the profitability of each area of your business
This article provides a summary of how each of these objects is synchronised between Panacea and Xero, as well as important considerations that you will need to take into account when using this integration.
You will require a Xero organisation for each Panacea clinic (for which you want to use the integration). You can configure Xero integration with some clinics in your Panacea enterprise but not others (i.e. have a mix of clinics that are and are not integrated with Xero). Due to limitations with Xero you cannot integrate multiple clinics with the same Xero organisation.
Xero has a single contacts database and only considers a contact to be a 'customer' if there is one or more 'accounts recievalbe' invoices against the contact in Xero.
- Customers are synced from Panacea to Xero if they have one or more 'on account' (e.g. accounts receivable) invoices open against them.
- If you use raise an 'on account' invoice against a customer in Panacea then that customer will automatically be synced to Xero.
- Customers are not synced from Xero to Panacea, so customer accounts should be created in Panacea first.
- You can manually sync a customer between Panacea and Xero, including forcing the sync of customers who don't have on-account invoices, by clicking the 'Xero' icon next to their name/in the customer screen.
- Once the initial sync has occurred, the integration will automatically sync changes to customer contact information between systems.
Customer Invoice Synchronisation
Only 'on account' invoices are synchronised between Panacea and Xero:
- Cash sales are included in daily cash up totals, as described below.
- This means that, if a customer has a combination of on-account and cash sales then only the 'on account' invoices will be synced to Xero.
- Customer invoices are only synced between Panacea and Xero, not the other way. We recommend raising all customer invoices in Panacea. Note that payments are synced in both directions.
- You can force an open (draft) sale to sync between Panacea and Xero as long as a customer is associated with the sale. Save the sale and click the Xero icon to force synchronisation.
- On account payments can be applied using either Panacea or Xero and will automatically sync between systems. This is great if you have customers who like to pay via direct debit as well as over the counter.
When invoices or daily cash up totals are synced to Xero the integration allocates revenue and purchase costs for all products and services sold (on the invoice or cash up total) in Xero, as described in the 'Tracking Gross Profit' section below.
All suppliers are synced between Panacea and Xero.
- The integration will attempt to match the suppliers between Panacea and Xero. If a match is found it will link the two.
- If no match is found the integration will create the supplier in Xero.
- Once a supplier has been linked between Panacea and Xero, the integration will automatically synchronise contact information changes between the two systems.
Supplier Invoice Creation
A draft supplier invoice will automatically be created in Xero whenever stock orders are set to 'completed' in Panacea.
Panacea does not track supplier invoices, so no changes will be synchronised for such supplier invoices once they are created.
Although each supplier invoice is itemised by product or service (as per the stock order), stock tracking is not performed in Xero. It is for this reason that stock takes should always be performed, and 'stock on hand' values calculated, using Panacea.
Daily Cash Up Totals
Panacea automatically syncs daily cash up totals between your Panacea clinic and Xero. This occurs at midnight based on the time zone of the clinic.
Only completed cash sales (i.e. all completed sales other than 'on account' sales) are included in the daily cash up totals.
Daily cash up totals are recorded in Xero as an 'accounts receivable' invoice, with a new invoice created for each day (i.e. for each 'cash up').
These invoices are arranged as follows:
- A sales line item is created for each product group based on the sales account code for each product. This allows you to see at a glance the value of products sold in each account code.
- Payments are automatically applied based on the payment types recorded on sales. This makes it easy to reconcile bank deposits against payments, as described in the 'reconciling Xero transactions' article in this library.
Tracking Gross Profit
A key benefit of the Xero integration is the ability to track sales revenue and cost of goods sold ('COGS') for your products and services. This information synchronises with Xero, allowing you to closely track and manage gross profit for each product and service line.
For this to be effective you will need to set the default sales and COGS account for each product and service in Panacea. To do so, click the 'edit' pencil for the product and navigate to the 'Xero' section and select the correct accounts, as illustrated below.