Xero Integration Overview and Configuration

Once your Xero account is connected (How To: Connect Xero to Measure), you can configure how data maps between Measure and Xero. This ensures that invoices, payments, taxes, and customers sync correctly. This article walks you through the settings available in the Xero integration panel.

1. In Measure, navigate to Integrations and select the Xero integration.

2. Click the Settings tab to open the configuration panel.

The Settings panel contains several mapping sections. You can update these at any time after the initial implementation.

• Product Mapping: Match your Measure products to the corresponding Xero Items. This ensures line items on invoices reference the correct item codes in Xero.

• Tax Mapping: Map Measure tax rates to the corresponding Tax Rates established in Xero. When an invoice syncs, the correct tax code is applied based on your configured mappings and calculated jurisdictions.

• Account Mapping: Set your Deposit Bank Accounts and Clearing Accounts on a per-currency basis. Specify the Xero account used to record payment gateway transaction fees, and set default Revenue and Discount accounts that apply when product-level accounts are not specified.

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 as Invoice records of type ACCREC (Accounts Receivable). Invoice statuses map as follows:

• Draft or Rollup Pending in Measure → DRAFT in Xero.

• Pending (open) 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.

If period dates are enabled, the billing period (for example, 01 Jan 2024 - 31 Jan 2024) is appended to each line item description. Taxes map to Xero's TaxType field at the line item level, based on your integration tax mappings.

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.

When a Credit Note is issued in Measure, it syncs as a Xero Credit Note (type ACCRECCREDIT). 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.

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.