Accounting transactions are automatically created in Xero, if Tradevine is integrated with Xero, when sales or purchases occur and when there are any events that affect inventory totals.
Sales
When a Sales Order is created in Tradevine, an Accounts Receivable Invoice is created in Xero. If the contact doesn't exist at the time the invoice is created in Xero, Tradevine will create the contact. Any changes to the Sales Order will flow through to Xero, until the Sales Order moves into an Awaiting Shipment status (after payment is received, and the address details are captured for non-collection orders). As no taxable event has occurred until the payment is received, for every day we are awaiting payment, we update the Invoice Date in Xero, so the Invoice date will be the date that payment was received into the account. The Accounts Receivable Invoice in Xero, will have an Awaiting Payment status.
Any payments should be updated within Xero itself. Tradevine checks Xero at a very regular interval and will automatically update any Sales Orders in Tradevine that are marked as paid in Xero.
Purchases
When a Goods Receipt is confirmed in Tradevine, an Accounts Payable Invoice is created in Xero. If the contact doesn't exist at the time the invoice is created in Xero, Tradevine will create the contact. The Accounts Payable Invoice in Xero, will have an Awaiting Payment status.
Inventory level changes
Whenever a Shipment is confirmed, or an inventory adjustment is made, a journal is sent to Xero, making the correct journal adjustments. The journals are queued and sent shortly after the confirmation of a shipment. This prevents accidental duplicate journal entries.
You can only see the journal entries in Xero under the Adviser menu, if you have been configured in Xero as a Financial Adviser.
Transaction mapping
Sales
Credit the Stock on Hand Account
Debit the Cost Of Goods Sold Account
Inventory Adjustments
EOY Reconciliation
- Same as reduce/increase stock
Obsolete Stock
- Credit SOH
- Debit Obsolete Stock
Breakage
- Credit SOH
- Debit Breakage
Stocktake
- Same as reduce/increase stock
Increase Stock
- Inventory Adjustment
- Debit SOH
Reduce Stock
- Credit SOH
- Debit Inventory Adjustment
IMPORTANT NOTE: The initial inventory transaction 'Opening Quantity in Stock' does not create any Xero transactions. It is important when completing a setup that the value of the inventory in Tradevine matches that in the specified Stock on Hand account in Xero. Your financial advisor can help you if you are uncertain about this.