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• How to setup proper Vend POS and Xero Integration

This article introduces Vend POS and Xero integration from an Accounting and Bookkeeping point of view.

If you are not quite sure how to set up your integration properly, please give us a call, so we can complete a full integration for you. We are not only cloud integrators, but also registered bookkeepers so we know process from the beginning to the end. 1

Prepare Xero for POS integration

Make sure that the following accounts are created in Xero before you setup the integration.

A/C Code	A/C Name	A/C Type	Tax Code	Dashboard	Payments	Balance
220	Vend Discounts on Sales	Revenue	GST On Income	No	No	No
438	Loyalty Expense - Vend	Expense	GST On Expenses	No	Yes	No
501	Vend Purchases	Direct Costs	GST On Expenses / or GST Free Expences	No	No	No
502	Till Variances - Vend	Expense	BAS Excluded	Yes	No	No
630	Refunds Vend	Current Asset	BAS Excluded	No	No	Yes
810	Vend Loyalty Liability	Current Liability	BAS Excluded	No	Yes	No
860	Rounding	Rounding	BAS Excluded	No	No	No
815	Vouchers to be redeemed	Current Liability	BAS Excluded	No	Yes	No
100	Clearing - Credit Card	Current Asset	BAS Excluded	Yes	No	Yes
110	Clearing - Cash	Current Asset	BAS Excluded	Yes	No	Yes

Accounts code numbers used in this article are designed around a standard Xero Chart of Accounts. If these particular numbers are taken, feel free to take assign your own numbers.

In order to get to your Chart of accounts, go to Settings, then Chart of Accounts

Vend Discounts

Please choose the appropriate GST code for your Store. For the majority of GST registered stores in Australia it will be: GST on Income.

Numbering and account number are chosen in such a way that you can see discounts given in your Profit and Loss report right below your Sales. Vend is going to bring across discounts for the day every time you close your till.

Here is an example of what you will see in Xero:

It will bring across all sales to your revenue account and negative sales in your discounts revenue account.

Loyalty Vend

Whether your store is using a loyalty program or not, it is better to setup the account, so if ever you decide to implement Loyalty it is ready to rock’n’roll. For more about loyalty and gift cards within Xero / Vend integration environment click here.

Two accounts needs to be created:

• Vend Loyalty Liability account to record all loyalty dollars accumulated by your clients on the Balance Sheet
• Loyalty Expense account to expense the loyalty dollars when used by your clients.

Account type: Expense. Please choose the appropriate GST code for your store. Usually this will be GST on Expenses. Enable payments to this account.

Account type: Current Liability. Default tax code: BAS Excluded. Enable payments to this account.

Cost of Goods - Purchases

This is not an Inventory account, as Vend does not sync inventory (not that it should). In the future all your Purchase orders are going to be turned into bills and applied against this account in xero.

Til Variances

Till Variance is treated as an expense because, while it does change the value of your cash, the income recorded is the same in spite of this. Tick “Show on Dashboard Watchlist” so you can keep track of variances. Default tax code: BAS Excluded.

Refunds

When you Vice a refund, Vend takes the amount refunded off the total amount collected using that payment type that day, so the refunded amount will be posted to Xero’s Current Liability account. This account is only used when the amount of the refund is larger than daily takings. Tax code: BAS Excluded.

Rounding

This is a default account in Xero, you do not need to create it and this account cannot be deleted. It is used to keep a record of the small discrepancies that can occur when calculating tax on very small transactions or to adjust paid amount when paid in cash to closest 5 cents.

Vouchers to be redeemed

When Vend's Gift Card functionality is be activated this account can be used to report Gift Card amounts issued to the customers, that may be redeemed sometime in the future. Enable payments to this account.

Clearing - Credit Cards

In an ideal world the EFT deposit into your bank account should match what the Vend end of day report says. However cashier epos are inevitable so it is always handy to have Clearing Account, so if something goes wrong.

Clearing - Cash

At the end of the day the Clearing Cash account will be a good indicator of what amount is still in the cash drawer as a float. Unless you are going to deposit the exact amount of takings on a daily basis to the bank, a clearing account will make your bookkeepers life easier.

Start Vend Integration

When all your accounts in Xero are setup properly go to Vend and activate Xero integration.

Click Menu then Setup then Add-Ons:

Click Add to Vend next in Xero option:

Click Enable Xero. Login into Xero with a user that has access to file that needs to be integrated.

Choose right file from the drop down and click Authorise:

Now you will be redirected to Vend - Xero integration page:

In General Settings select Register closure details: Send a summary by account code. That would work good for simple Vend setup when all sales are corresponding to one Sales account.

Accounts for Sale Taxes, here you can map appropriate Tax Codes in Xero to tax codes in Vend:

• BAS Excluded - BAS Excluded
• GST on Expenses - GST on Expenses
• GST on Income - GST on Income
• No Tax - BAS Excluded

In Accounts for Products select a default sales account (in Xero default CoA 200) all sales will be applied against this account unless specified otherwise during the product setup stage.

In Inventory Orders and Account Sales choose Send invoices as: Approved and Purchases direct to 501.

If you are using a clearing account, it saves a lot of time to Approve the Sales invoice when Till is closed. 501 account will be used for all purchase bills exported from Vend.

In Accounts for payments select allocated accounts:

• Cash - 110-Clearing - Cash
• Credit Card - 100-Clearing - Credit Card
• Gift Card - 815-Vouchers to be redeemed
• Till payment discrepancies - 502-Till Variances - Vend

In Accounts for Liability choose:

• Loyalty liability - 810-Vend Loyalty Liability
• Loyalty expense - 438-Loyalty Expense - Vend
• Gift card liability - 815-Vouchers to be redeemed

Scroll up and push Save.

What does it do

• Vend will post the following to Xero every time the till is closed:
  • Sales.
  • Discount.
  • Cash, EFTPOS and credit card payment to reconcile against cleared payment deposits.
  • Purchase stock bills created out of purchase orders.
• Vend can import (an import only, no synchronization):
  • Existing ContactsStock Items

What it does not do

• Unfortunately the following functions still have to be done manually by your bookkeeper:
  • Inventory adjustments: breakage, wastage, write-offs and consumption of own inventory.
  • If you want to store original invoices against your purchases.
  • Stock levels for your Balance Sheet reports for FYE.

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