Xero Integration Overview and Setup

The Xero integration pushes customers, invoices, payments, and credit notes from Measure to Xero. When data changes in Measure, it automatically syncs to the corresponding records in Xero via our daily sync, or manually when Measure pushes that entity.

In Measure, go to Integrations > QuickBooks. Click Connect Account, log in to Xero, and select your company to authorize the connection.

The settings panel allows you to map various data points from Measure to their corresponding fields in Xero Online.

• *Clearing Account Mapping: Select the account (example: "Undeposited Funds") that temporarily holds payments.

• *Transaction Fees Bank Account: Select a transaction fee bank account to record all fees against.

• Bank Account Mapping: Match currencies in Measure to your deposit accounts in Xero.

• If calculating taxes:

  • Product Mapping: Match products in Measure to your Xero products.

  • Tax Rates Mapping: If calculating taxes, map tax rates from Measure to the corresponding tax rates in Xero.

• Journal Account Mapping: Match Measure accounts to each journal account in Xero.

• Xero Revenue Account: Select a revenue bank account to record all fees against.

• Xero Discounts Account: Select a discount bank account to record all fees against.

• *Minimum Onboarding Steps

When first installing Xero, you will be prompted to map your initial data between Measure and Xero. This includes:

For existing customers in Measure and accounting, you can simply match these under Matches > Customers by clicking Match and selecting the customer from Xero. Any customers that are not created in accounting can be pushed to create.

When a customer is created or updated in Measure, it syncs to a Contact record in Xero. The customer's name maps to Xero's Name field (sanitized to meet Xero's character requirements), email maps to EmailAddress, and Measure's unique Customer ID populates Xero's ContactNumber field to ensure a reliable link between the two systems.

If address syncing is enabled, the customer's billing address maps to Xero's Addresses array as a POBOX address type. If a customer is deleted in Measure, the corresponding Xero Contact is automatically updated to ARCHIVED.

Measure invoices sync to Xero. Upon installation, you can do an Initial Sync to push over invoices from Measure to Xero under Matches > Invoices > Initial Sync.

Invoice statuses map as follows:

• DRAFT or ROLLUP PENDING in Measure → DRAFT in Xero.

• PENDING in Measure → AUTHORISED in Xero.

• PAID in Measure → AUTHORISED or PAID if fully reconciled.

• VOIDED in Measure → VOIDED in Xero.

Line items map to Xero invoice lines based on their type. Products and Services map to the specific Xero Items you configured in your integration settings. If the Xero Item has a default Sales or Revenue account in Xero, that account is used. Otherwise it falls back to the Revenue Account selected in your Measure integration settings.

Discounts are handled based on your configuration. If a Discount Account is configured in Measure, the discount is added as a separate negative line item booked to that account. If no account is configured, Measure reduces the pre-tax unit price of the original product line item instead.

Credits applied directly to an invoice (not part of a formal Credit Note) push as negative, non-taxable line items on the Xero Invoice. Invoice line descriptions sync to Xero. If configured, the billing period for the line item (for example, 01 Jan 2024 - 31 Jan 2024) is appended to the description for clearer revenue recognition.

Taxes calculated in Measure map to Xero via the tax mappings you configured in your integration settings.

Like Invoices, upon installation, you can do an Initial Sync to push over payments from Measure to Xero under Matches > Payments > Initial Sync.

To ensure accurate bank reconciliation, Measure handles payments using a three-step accounting flow in Xero. This separates gross revenue from payment gateway fees and mirrors the actual cash flow in your bank account.

When a payment is captured in Measure, three objects are created in Xero. The Invoice Payment records the full gross amount against the target invoice, deposited into your configured Clearing Account (for example, a Stripe Clearing account). The Gateway Fee records the transaction fee as a Xero BankTransaction (SPEND type), deducted from your Deposit Bank Account and booked to your Transaction Fee Account. The Net Transfer records the movement of the net settlement from the Clearing Account into your actual Deposit Bank Account, mirroring the payout deposit on your bank statement.

Lastly, like invoices and payments, upon installation, you can do an initial sync to push over Credit Notes from Measure to Xero under Matches > Credit Notes > Initial Sync.

When a Credit Note is issued in Measure, it syncs as a Xero Credit Note. Line items map to the same Xero Items and Revenue Accounts used on the original invoice, ensuring accurate revenue reversals. Standalone credits in Measure are not pushed to Xero directly. They sync only when formally part of an issued Credit Note.

When a credit note balance is applied to an open invoice in Measure, Measure creates an Allocation record in Xero that links the Credit Note to the target Invoice, reducing the open balance without affecting cash accounts.

Refunds are only pushed when directly associated with an issued Credit Note. When a cash refund is made in Measure, Measure syncs it as a Xero Payment (type ARCREDITPAYMENT), applied against the associated Credit Note and drawn from your mapped Deposit Bank Account.

The Settings panel includes controls that determine how data is pushed to Xero. You can enable the following options:

• Override Xero Customer Address with Address from Measure: Syncs customer billing addresses from Measure to the corresponding Contact records in Xero.

• Add Period Dates to Xero Line Item Description: Appends the service period (for example, 01 Jan 2024 - 31 Jan 2024) to each invoice line item description in Xero.

• Do Not Push Manual Payments to Xero: Payments received outside of Measure but marked as "Paid" on the corresponding invoice in Measure will not be pushed over automatically. These will need to be reconciled manually in accounting.

The top tabs in the Xero integration panel let you monitor sync activity and history.

• Matches: View and manage how customers, invoices, and payments in Measure are matched to records in Xero. Manually match any items that were not linked automatically.

• Syncs: See a summary of items pending a sync. Trigger a manual sync from this tab. The next scheduled automatic sync time is also shown here.

• Logs: Review a detailed history of all sync activities and any errors that occurred.

Automatic Sync

Turn on and preview when your next automatic sync will occur under the Settings tab of your Xero integration.

You can also preview a summary of records queued for the next sync.

Manual Sync

Push a manual sync from Syncs by going to your Matches and selecting the item you want to push.