It is easy to export transactions from Commerce to Xero. In this guide, we will see how to export an Expense (purchase/bill) or a Sale (invoice) and post it to Xero.

We recommend that you know:
-> How to connect an accounting platform
-> How to connect an account

It’s also good if you are familiar with creating transactions in Xero since Commerce’s export will require the same fields in most cases.

NOTE

If you change any of your settings in Xero (e.g. added a new Chart of Account), Commerce will sync your changes on the next export.

PRO TIP

Don’t forget to make an expense account in Xero for payment processing fees, transaction fees, and marketplace fees. Commerce generates ancillary transactions for “netted out” fees and deductions from bank deposits if there aren’t any so that you can reconcile your operating costs.

Basic & Advanced Accounting Exports

All users can export transactions one-at-a-time to their connected Xero account. Basic exports to Xero include fields for vendor/customer, account paid from or deposited to, line item account (e.g. category), tax (on a sale), and matching existing or creating new transactions and attaching the original receipt (if one is available). Advanced exports for paid users include billable customer, billable expense, class tracking, and department, cost centre/location tracking.

Custom Accounting Data Exports

With Commerce’s Accounting Data Export Preferences feature, you can customize how you would like your sales and expense data exported to Xero. Set your Time Zone, Summary or Itemized Mode, Shipping Total, Discount Total, Contact Level, and Item SKU Matching. Learn more

An Expense in Commerce consists of three different transaction types: Purchase, Bill, or Reimbursement. The transaction type shows on each transaction.

When you export an Expense from Commerce to Xero, each type will map to an expense transaction in Xero.

A Sale in Commerce records both the sale and the payment. A Sale consists of two transaction types: Sales Receipt or Refund. When you export a Sale from Commerce to Xero, each type will map to either a Sales Receipt (immediate payment) or a Refund in Xero.

NOTE

If you modify any settings in Xero, they will be refreshed in Commerce during the next export.

All users can export transactions one-at-a-time to their connected accounting package.

To export an Expense or Sale transaction:

Commerce refreshes your settings from Xero to ensure everything is up to date.

NOTE

Commerce auto-fills the Reference Number field with the transaction number when available.

Commerce searches for matches and duplicates in all of your Xero accounts. If a match is found you have the option to update the matched expense or create a new one.

Updating a matched expense will not cause a duplicate in Xero, rather it will update the transaction with additional details and attach the original receipt if available.

CAUTION

Review matches carefully. Even though Commerce finds similar transactions, you may still intend on creating a new transaction

Commerce displays the fields required to successfully export your transaction to Xero. The names of the fields mirror the names Xero uses.

PRO TIP

To see detailed information about each field
-> View the anatomy of an expense export and
-> View the anatomy of a sales export

PRO TIP

You can customize your advanced data export options with Commerce’s Accounting Data Export Preferences feature. Set your Time Zone, Summary or Itemized Mode, Shipping Total, Discounts, Contact Levels, and Item SKU Matching.
-> Learn how to configure your export preferences

The “From” field is the Contact (vendor (creditor), supplier, marketplace, seller platform, etc) that will be associated with the transaction. This mirrors the “From” field in the Xero UI on their own transaction form.

The “Type + Account” field is Commerce’s way of representing two concepts in one field. It represents both the type of transaction to create and which account it was paid with. Depending on how you have your Chart of Accounts set up in Xero, you may see “Bill”, “Bill + Payment”, and “Bank Transaction” types.

This will create an “unpaid” Bill (Purchase) in Xero.

This will create a Bill (Purchase) transaction and also create (apply) one or more Payment transactions in Xero. Commerce will display a unique “Bill + Payment” entry for every account you’ve flagged as “payable” in Xero. See Enable Payments to an Account

This will create a Spend Money transaction in Xero. Commerce will display a unique “Bank Transaction” entry for every bank account in Xero.

Pro-Tip: A deleted Receive Money transaction can not be restored. So re-export it from Commerce. See below.

Either Bill + Payment or Bank Transaction accomplish the same general goal. Depending on your Xero subscription, you may have limited “Bills” you are allowed to create. In that case we’d suggest you primarily use Bank Transactions. If you have unlimited Bills then we suggest you use Bill + Payment.

Hints extracted directly from the receipt or ancillary transaction will display below the field to help you accurately decide the export destination. Ex: “You paid with Visa x-4242”, “You paid with Etsy Shop Funds-Acme Soap x-1200400

“The Line Item Account” field is the account to associate with the expense. Usually, you think of this as the “category” of what you’ve spent, but in double entry bookkeeping it’s possible it represents something else like an Asset. This mirrors the “Account” field in the Xero UI on their own transaction line items. Select the default remembered from the last export or select from the dropdown. You should see the account code, account name, and the account type (Expense, Asset, etc). Ex: 6000 Advertising (Expense), Material (Cost of Goods Sold), 601 Marketplace Fees (Expense), etc. If you need a new account, go to Xero to add it and then start your export over again in Commerce. The dropdown is in CoA order and displays the right group to help you.

The “Customer to Bill” field is (Commerce premium only feature) for assigning a Billable Expense to a customer. This mirrors the “Assign expenses to customer” link in the Xero UI on their own transaction form. If you start your workflow from Xero instead, leave the expense unassigned or “Decide Customer Later”.

You can edit and/or not add outstanding expenses when prompted in Xero later.

Commerce will remember it for the next time.

Pro-Tip: Xero recommends “Xero Projects” to assign expenses to a project ie: job costing.

The “Tracking Category” field(s) are (a Commerce premium only feature) for setting your configured tracking categories in Xero. If you’ve setup Tracking Categories in Xero then Commerce will display them as optional fields (paid users only). Ex: Division (Optional).

“Expense Successfully Exported!” is validation that the transaction exported accurately to Xero as intended. The confirmation displays extracted details such as Purchase No. (receipt number), Purchase Date, Total, the corresponding Xero account (selected in Step 1), etc.

Go to Xero to view the new or enhanced transaction. You will see that Commerce has completed the fields with receipt data, attached the receipt when available, and added a deep link in the top left corner. The link will take you back to the (original) receipt view in Commerce seamlessly if you want to refer to it after the export.

Commerce doesn’t create generic journal entries. Behind the scenes, Commerce will remember your export mappings for the next time, sets the date of the transaction, inputs the reference number, creates a ‘text receipt’ of the line items for the Description, maps the transaction type for Expenses, Sales, Returns, Reimbursements, Invoices, Bills, etc, displays the real payment date, the sales tax, the shipping fields when supported in Xero, tracks the PO number, tracks categories, attaches the receipt when available, and more.

If you wish to re-export an Expense transaction, click on the arrow icon “Re-export Transaction to Accounting System”. Commerce will recognize it and suggest updating the existing transaction on the next screen (Step 1). If it was deleted or voided in Xero, it will be treated like an initial export. Return to Steps 1-3 either way.

Pro-Tip: Remember that if you modify any settings in Xero, they will be refreshed in Commerce during the next export.

Pro-Tip: Since Xero does not allow deleted Spend Money transactions to be restored, Commerce’s re-export feature is a great solution!

A “Sale” in Commerce consists of 3 different transaction types: Sales Receipt, Invoice, or Refund. When you export a Sale from Commerce to Xero, each Commerce type will map to either a a Sale/Invoice or a Receive Money Transaction in Xero.

Every transaction in Commerce includes an “Export Button”. Clicking it will initiate Commerce’s Export wizard. On the dashboard, choose a transaction and click the Export button. Once clicked, Commerce will refresh your settings from Xero and search for matches.

For Step 1 of 3 “Select Destination Account and Company”, Commerce searches for matches and duplicates in all of your Xero accounts (and any other accounting platforms you have connected). Select one item ie: “Matched Sale” or “Create New Sale” (if displayed) that corresponds with the accounting package you want it to post to.

A “New Sale” will create a transaction that does not yet exist in Xero. If you select this option, a new transaction will be created in Xero after completing the next 2 steps.

A “Matched Sale” is when Commerce recognizes one or more transactions that exist in Xero. If you select “Update Matched Sale”, the existing transaction will be updated in Xero after completing the next 2 steps. On a matched sale export, Commerce updates and enhances the existing transaction with additional details and attaches the original receipt (when available). You can safely export knowing that an update will not cause a duplicate in Xero.

NOTE: Review matches carefully. Even though Commerce finds similar transactions, you may still intend on creating a new transaction.

For Step 2 “Select Export Options and other Details”, Commerce will show you the fields required to successfully export your transaction to Xero. The names of the fields will mirror the names Xero uses in their own UI. Depending on what you’ve enabled in Xero, some fields may or may not always be displayed. For example, the tax rate field will display if you have set that up in Xero.

The “To” field is the Contact (marketplace, seller platform, or customer name (debtor) if available) that will be associated with the transaction. This mirrors the “To” field in the Xero UI on their own transaction form.

The “Type + Account” field is Commerce’s way of representing two concepts in one field. It represents both the type of transaction to create and which account the payment applies to. Depending on how you have your Chart of Accounts set up in Xero, you may see “Invoice”, “Invoice + Payment”, and “Bank Transaction” types.

This will create an “unpaid” Invoice (Sale) in Xero.

This will create an Invoice (Sales) transaction and also create (apply) one or more Add payments in Xero. Commerce will display a unique “Invoice + Payment” entry for every account you’ve flagged as “payable” in Xero. See Enable Payments to an Account and Record Payment of a Sales Invoice

This will create a Receive Money transaction in Xero. Commerce will display a unique “Bank Transaction” entry for every bank account in Xero.

Pro-Tip: A deleted Receive Money transaction can not be restored. So re-export it from Commerce if needed. See below.

Either Invoice + Payment or Bank Transaction accomplish the same general goal. Depending on your Xero subscription, you may have limited “Invoices” you are allowed to create. In that case we’d suggest you primarily use Bank Transactions. If you have unlimited Invoices then we suggest you use Invoice + Payment.

Hints extracted directly from the sales receipt or ancillary transaction will display below a field to help you accurately decide the export destination. Ex: “Shipped to Birmingham, MI US 48009”, “You were paid with Etsy Shop Funds-Acme Soap x-1200400", etc.

“The Line Item Account” field is the account to associate with the Sale. Usually, you think of this as the “category” of what you’ve received, but in double entry bookkeeping it’s possible it represents something else. This mirrors the “Account” field in the Xero UI on their own transaction line items. Select the default remembered from the last export or select from the dropdown. You should see the account code, account name, and the account type (Revenue, etc). Ex: 400 Sales (Revenue). If you need a new account, go to Xero to add it and then start your export over again in Commerce. The dropdown is in CoA order and displays the right group to help you.

The “Tax Rate” field is for the tax on the invoice/sale. Commerce pulls in what you have set up in Xero. You will see a hint (when available) to help you. Ex: “Shipped to Birmingham, MI US 48009”. If you decide to change the tax rate, go to Xero first and then start your export over again. If you need your sales data from a platform transformed (e.g. VAT amount needs reverse calculated on VAT Inclusive sales, etc), send your request to: [email protected]. Also see Transforms by Commerce.

“Sale Successfully Exported!” is validation that the transaction exported accurately to Xero as intended. The confirmation displays extracted details such as Sales Receipt No. (Invoice), Date Sold (Date of Payment), Total, the corresponding Xero account (selected in Step 1), etc.

Go to Xero to view the new or enhanced transaction. You will see that Commerce has completed the fields with receipt data, attached the receipt when available, and added a deep link in the top left corner. The link will take you back to the (original) sales receipt view in Commerce seamlessly if you want to refer to it after the export.

Commerce doesn’t create generic journal entries. Behind the scenes, Commerce remembers your export mappings for the next time, sets the date of the transaction, inputs the reference number, creates a ‘text receipt’ of the line items for the Description, maps the transaction type for Sales, Refunds, Expenses, Reimbursements, Invoices, Bills, etc, displays the real payment date, the sales tax, the shipping fields when supported in Xero, tracks the PO number, tracks categories, attaches the receipt when available, and more.

If you wish to re-export a Sales transaction, click on the arrow icon “Re-export Transaction to Accounting System”. Commerce will recognize it and suggest updating the existing transaction on the next screen (Step 1). If it was deleted or voided in Xero, it will be treated like an initial export. Return to Steps 1-3 either way.

Pro-Tip: Remember that if you modify any settings in Xero, they will be refreshed in Commerce during the next export.

Pro-Tip: Since Xero does not allow deleted bank transactions (Spend or Receive Money) to be restored, Commerce’s re-export feature is a great solution!

Not all stores/seller platforms track your receipts the same way. It could be by login ID, account, payment method, loyalty card, etc. Here are some tips on how to switch ON your receipt data.

Amazon (Purchases)

Automate Your Amazon Receipts

Automate Your Amazon Business Receipts

Amazon Seller Central (Sales)

Best Accounting Practices for Amazon Seller Central + Xero

Etsy (Expenses and Sales) *…also eBay sellers, and Square

Best Accounting Practices for Etsy + Xero

Home Depot (Purchases)

How To Automate Your Online and In-Store Home Depot Receipts

How To Automate Home Depot Pro Xtra Receipts

How to Automate Home Depot Branded Credit Cards (Commercial)

Lowe’s (Purchases)

How To Automate Your Lowe's In-Store and Online Receipts

Shopify (Sales)

Best Accounting Practices for Shopify + Xero

Stripe (Sales)

Best Accounting Practices for Stripe + Xero

Walmart (Purchases)

Automate Your In-Store and Online Walmart Receipts

Contacts: are customers (debtors), vendors, or suppliers. They are all treated as Contacts in Xero.

Chart of Accounts: is made of accounts for coding and classifying your transactions. There are custom accounts and standard/system-locked accounts (codes) that cannot be changed. There are 5 Account Types: Assets, Liabilities, Expenses, Equity, or Revenue.

Account Code: is a unique code/number (up to 10 characters) for an account in your Chart of Accounts. Xero recommends having no more than 699 account codes.

”Spend Money” Transactions: are “bank account” transactions. Also “Receive Money”.

Bill: is input as a (Purchase) Bill transaction or a Spend Money transaction for an expense.

Billable Expenses: are for oncharging, onbilling, recharging, reimbursables, disbursements, pass on costs, or pass-thru expenses that will be billed to the customer.

Reference Numbers: are numbers referring to individual invoices, transactions, or receipts in Xero.

Expense Claims: are expenses that you, or an employee paid for that need reimbursed.

Purchases/Expenses: are expenses paid for with company funds. They are not expense claims. Ex: Add either a Bill, or a Spend Money Transaction for an expense ie: purchase paid for with a company debit card.

Xero Expenses App: is for snapping photos of paper receipts and submitting expense claims for reimbursement in Xero. It is not for business purchases/expenses paid for with company funds. The app isn’t necessary for any original receipts fetched by Commerce.

Income: is input as a Sales Invoice or a Receive Money transaction.