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Xero End of Year best practices

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When preparing for the end of your financial year, you will want to ensure all of your accounts in Xero are up to date and align with your stock holding in Unleashed. You will need to identify and resolve any failed exports, variances or discrepancies between Unleashed and Xero before closing accounts for the year.

In the below article we've outlined some of the main points and best practices for managing Unleashed and Xero as you approach the end of your financial year! 

Reconcile Unleashed with Xero

Throughout the year, it's best practice to periodically review the Xero integration and check your stock balances match across Unleashed and Xero to ensure all data's exported and consistent for both platforms. Variances and errors are always easier to resolve when reviewed often.

How Unleashed's transactions affect Xero's accounts

The core principle of Unleashed's integration with Xero 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. 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 reconciled. 

  • 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).

For more details, see Which accounts in Xero are affected by transactions from Unleashed?

We therefore want to ensure that all transactions and journals are exporting successfully to maintain reporting across both systems.

Reconcile in Xero

Make sure that all journals and transactions in Xero are in an Approved or Paid status, as this will ensure your Stock Balances and accounts are updated and accurate. If a journal or transaction is left in a Draft status in Xero, it will display as a variance in Unleashed's Export Data page. 

Reconcile in Unleashed

Ensure all of your completed and receipted transactions have exported successfully to Xero by reconciling your integration in Unleashed:

  1. From the main menu, go to Integration, Integration Store and select the Xero tile. 

  2. Go to the Export Data tab.

  3. Each transaction type that exports from Unleashed to Xero is displayed in it's own tab within the Export data page. Select one of the transaction tabs (see Xero Integration Setup: Export Data).

  4. Use the Date Range field in the header to filter the transactions to 1 month at a time.

  5. Select "Reconcile Transactions". A notification will be displayed in the taskbar of your Unleashed account to signify a reconciliation is in progress.
    • Orange circle: In progress
    • Green tick: completed


  6. Once the reconciliation is complete, repeat steps 3 -5 for each transaction tab.
    NOTE: In the Journals tab, use the Select Journal dropdown menu to reconcile each Journal type.

Once you have performed a reconciliation of transactions in Unleashed, a sum total of any variances between Unleashed and Xero will be displayed in the Export Data page's header figures. Similarly, the Variance and Export Status columns within each transaction tab's grid layout will identify which individual  transactions are contributing to the total variance and need to be resolved.

For more details, see How to reconcile Unleashed and Xero.

Common causes for variances between Unleashed and Xero

Some of the common reasons why you may experience stock value discrepancy between Unleashed and Xero are: 

  • Unleashed and Xero's total stock values didn't match during the initial setup (a variance from the start)
  • Transactions were manually deleted in Xero after they've export from Unleashed
  • Journal entries have been manually added to Xero
  • Journal entries have been edited in Xero
  • Journals have not been approved in Xero
  • Journals have not successfully exported to Xero
  • Journals have not been enabled in the Xero configuration setup

For more details, see Why is there a difference between my Stock On Hand Enquiry in Unleashed and my Stock Balance sheet in Xero?

Resolving variances between Unleashed and Xero

If you have identified any variances between Unleashed and Xero, you'll want to resolve them prior to closing your accounts for the end of year. 

Cause of variance How to resolve the variance
Unleashed and Xero's total stock values didn't match during the initial setup (a variance from the start) Manually add a journal in Xero to account for the initial difference.

Transactions were manually deleted in Xero after they've export from Unleashed

Re-enter or restore the journal in Xero to align with Unleashed's transaction.

Journal entries have been manually added to Xero

Remove any manually added journal entries in Xero that do not have a matching transaction in Unleashed. 

Journal entries have been edited in Xero

Revert the journal entries back to their original date and/or value, to re-align with Unleashed's transaction.

Journals have not been approved in Xero

Go to your Xero account and approve any transactions in Draft status.

Journals have not successfully exported to Xero

Review the View Failed Exports and Connection Log pages to identify the reasons why the exports have failed. Fore more details on reviewing and troubleshooting failed exports, see Xero Connection Log & Common Errors

Journals have not been enabled in the Xero configuration setup

Go to Integration, Integration Store, Xero and in the Configuration tab toggle on each Journal setting, then select Save Configuration. For more details, see Xero Integration Setup

If you have checked and tried all the above and the stock value is still showing significant discrepancies for a long period of time, our recommendation is to ‘draw a line’ and create a stock count in Unleashed and a manual journal entry in Xero to match the Stock on Hand value between systems. You can then start fresh again from that point in time and any newly completed transactions in Unleashed will then be sent to Xero.

Useful Unleashed Reports 

Stock on Hand Enquiry

If you wish to know the current total value of your stock in Unleashed to compare it with Xero's Current Asset account, use the Stock on Hand Enquiry (go to Reports, Inventory, Stock on Hand Enquiry). 

The Stock on Hand Enquiry will display the total quantity and total stock value of your inventory (as well as per product) for any given date. The Total Cost displayed at the bottom of the Stock on Hand Enquiry should match the total stock balance in Xero's Current Asset.

Transaction Enquiry

If you are looking for a report to compare the stock movements in Unleashed with the journals created in Xero (effectively a COGS report), use the Transaction Enquiry.

The Transaction Enquiry provides a breakdown per product, per transaction of the total stock value that's been adjusted from Unleashed's total stock value, and as such will align with the journals that have been generated in Xero. Use the Transaction Type filter in the Transaction Enquiry to refine your report and more easily compare Unleashed's stock movements with Xero's Cost of Goods Sold account.

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