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Which accounts in Xero are affected by transactions from Unleashed?

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Whilst connected with Xero, when a transaction is completed in Unleashed the integration will trigger the export of a matching transaction to update your Xero accounts accordingly, keeping both platforms aligned. 

  • Purchase Orders will update the "Stock on Hand/Current Asset" account in Xero, except for items categorized under the "Never Diminishing Product Type," which will update a specified Purchase Account.

  • Sales Invoices will update the "Sales Revenue Account."

  • Sales Shipments & Adjustments will update both the "Stock on Hand/Current Asset" and "Cost of Goods Sold" (COGS).

The core principle is that stock purchased from suppliers is considered a Current Asset until it is sold. Once sold, the cost of the product is then accounted for as Cost of Goods Sold.

The below tables have outlined how each transaction update performed in Unleashed will affect your accounts in Xero, if that option is enabled in your configuration's settings. For more details on configuring your Xero integration, see Xero Integration Setup.

Purchases 

A Bill to Pay transaction will be created in Xero as and when a Purchase Order is updated to Receipted or Completed status in Unleashed. Separate Bill to Pay's will be created in Xero for each Supplier and Cost Date included on a Purchase Order in Unleashed (see Xero integration FAQs), and will update the following accounts in Xero:

Transaction in Unleashed Unleashed update Transaction in Xero Xero accounts
Purchase Order Receipted
  • Stock on Hand increases by receipted quantity
  • Stock value increases by receipted landed cost

Creates a Bill to Pay.
  • Stock on hand account's value increases by the receipted stock value.
Purchase Order Completed (no additional costs) No change to the receipted stock's quantity or value No transaction is exported to Xero.  No changes to Xero accounts.
Purchase Order Completed (includes additional costs)
  • Stock value increases with a "recost" for the previously receipted stock

Creates a Bill to Pay.
  • A recost journal is created, increasing the Stock on Hand account's value by the additional cost's value.
Supplier Return Completed
  • If Return is ticked, the product's stock on hand quantity will decrease.
  • If Return is unticked, the stock on hand quantity will be unchanged. 
  • If a Return Price or Cost is provided, the product's stock value will decrease. 

Creates a Bill to Pay (credit).
  • Stock on hand account's value will decrease, based on the returned product's total change in stock value.

NOTE: If Using Receipted Goods on Assemblies is enabled in your Company Settings, be advised that additional costs added to receipted component stock will not create a recost journal in Xero and as such will result in a variance with Xero's Stock on Hand account. To re-align Unleashed's total Stock Value with Xero's Stock on hand total create a manual stock adjustment in Xero for the value difference. 

Sales

To provide flexibility for your inventory management whilst maintaining accuracy with your financial accounting, each Sales Order's progress is managed in two parts; Invoices and Shipments. Invoices manage the pricing and generated revenue of your Sales Orders and as such will integrate with your Sales account in Xero. Whereas Shipments manage the stock movements and the impact the dispatched stock's value has on your current inventory and business's performance. When dispatched, Shipments will therefore remove value from the Stock on Hand account in Xero and add it to your Cost of Goods Sold (COGS) account. 

Transaction in Unleashed Unleashed update Transaction in Xero Xero accounts
Sales Invoice Completed Sales Revenue increases

Creates a Sales Invoice.
  • Sales Account increases
Shipment Dispatched
  • Stock on Hand quantity decreases.
  • Total stock value decreases.

Creates a shipment journal.
  • Cost of Goods Sold (COGS) increases, based on each product's current ALC.
  • Stock on Hand account decreases, based on each product's current ALC.
Credit Note Completed (Return unticked)  Sales Revenue decreases

Creates a Credit Invoice.
  • Sales Account decreases
Credit Note Completed (Return ticked)
  • Sales Revenue decreases
  • Stock on hand quantity increases
  • Creates a Credit Invoice.
  • Creates a credit journal.
  • Sales Account decreases
  • Cost of Goods Sold (COGS) decreases, based on each product's current ALC.
  • Stock on Hand account increases, based on each product's current ALC.

Production

Any time your inventory's total stock value changes based on an internally completed transaction, such as; Assemblies, Stock Adjustments or Stock Counts, a matching journal will be created in Xero to update the Stock on Hand account accordingly.  

If an Assembly or Disassembly is completed in Unleashed that does not include any Never Diminishing Product (NDP) components or Supplier Costs, no journal will be exported to Xero as there has been no change made to your total stock value.

Transaction in Unleashed Unleashed update Transaction in Xero Xero accounts
Assembly Completed
(no NDP components or Supplier Costs)
  • Assembled product's stock on hand quantity and value increases.
  • Component products' stock on hand quantity and value decreases.
 No transaction is exported to Xero.  No change to Xero accounts. 
Disassembly Completed
(no NDP components or Supplier Costs)
  • Assembled product's stock on hand quantity and value decreases.
  • Component products' stock on hand quantity and value increases.
 No transaction is exported to Xero.  No change to Xero accounts. 
Assembly Completed
(including NDP components)
  • Assembled product's stock on hand quantity and value increases.
  • Component products' stock on hand quantity and value decreases.

Creates an Assembly journal.
  • Expense account decreases, based on the NDP's component cost
  • Stock on Hand account increases, based on the NDP's component cost.
Disassembly Completed
(including NDP  components)
  • Assembled product's stock on hand quantity and value decreases.
  • Component products' stock on hand quantity and value increases.

Creates an disassembly journal.
  • Expense account increases, based on the NDP's component cost
  • Stock on Hand account decreases, based on the NDP's component cost.
Assembly Completed
(including Supplier Costs)
  • Assembled product's stock on hand quantity and value increases, including the Supplier Cost value.
  • Component products' stock on hand quantity and value decreases.
 Creates a Bill to Pay.
  • Stock on Hand account increases, based on the total Supplier Cost value added.
Stock Adjustment Completed (quantity and value)
  • Stock on hand quantity increases or decreases, based on the adjustment's quantity.
  • Stock value increases or decreases, based on the adjustment's value.
 Creates an Adjustment journal.
  • Stock on Hand account increases or decreases based on the Stock Adjustment's total value. 
Stock Adjustment Completed (quantity only)
  • Stock on hand quantity increases or decreases, based on the adjustment's quantity.
 No transaction is exported to Xero.  No change to Xero accounts. 
Stock Adjustment Completed (value only)
  • Stock value increases or decreases, based on the adjustment's value. 
 Creates an Adjustment journal.
  • Stock on Hand account increases or decreases based on the Stock Adjustment's total value. 
Stock Revaluation Completed
  • A value-only stock adjustment is created, to update the product's current ALC and stock value.
 Creates an Adjustment journal.
  • Stock on Hand account increases or decreases based on the Stock Adjustment's total value. 
Stock Count Completed
  • If any variance is found, a Stock Adjustment will be created to adjust the product's quantity as per the count's quantity.
  • The adjusted product's current ALC will be used to update the product's total stock value proportionally.
 Creates an Adjustment journal.
  • Stock on Hand account increases or decreases based on the Stock Adjustment's total value.



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