Xero Integration Overview and Configuration

This guide explains how Measure objects map to corresponding entities in Xero. Understanding these mappings helps you reconcile accounts and ensures your billing data flows correctly into your accounting software.

Measure provides a dedicated integration interface that gives you full control over how data flows into Xero. From this dashboard, you can map products, taxes, and accounts to match your existing Xero setup.

Product Mapping:

Map your Measure Products directly to your existing Xero Items. This ensures that line items on invoices reference the correct item codes in your accounting system.

Tax Mapping:

Map Measure's tax calculations to the corresponding Tax Rates established in Xero. When an invoice is synced, the correct tax code is applied based on your configured mappings and calculated jurisdictions.

Account Mapping:

Set your target Deposit Bank Accounts and Clearing Accounts on a per-currency basis. Specify the exact Xero Account used to record payment gateway transaction fees. 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 is synchronized to a Contact record in Xero. This ensures your customer list stays consistent across both systems.

Field Mappings:

• Name: Mapped to the Name field in Xero (sanitized to meet Xero's character requirements).

• Email: Mapped to EmailAddress.

• Contact Number: Xero's ContactNumber field is populated with Measure's unique Customer ID, ensuring a reliable linkage between the two systems.

• Address: If address syncing is enabled, Measure maps the customer's billing address to Xero's Addresses array (as a POBOX address type).

Archiving Customers:

If a customer is deleted in Measure, the corresponding Xero Contact's status is automatically updated to ARCHIVED. This keeps your Xero contacts list clean and up to date.

Measure Invoices are synchronized to Xero as Invoice records of type ACCREC (Accounts Receivable). This creates a direct link between your billing records and your accounting ledger.

Status Mappings:

Measure invoice statuses translate to Xero statuses as follows:

• Draft or Rollup Pending: Mapped to DRAFT.

• Pending (Open): Mapped to AUTHORISED.

• Paid: Mapped to AUTHORISED (or strictly PAID if fully reconciled).

• Voided: Mapped to VOIDED.

Line Item Mappings:

Line items on a Measure invoice are mapped to Xero invoice lines based on their type. This ensures that revenue is recorded in the correct accounts and that discounts are handled according to your configuration.

Products and Services: Mapped to the specific Xero Items you configured in your integration mappings. 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:

• If a specific Discount Account is configured in Measure, the discount is added as a separate, negative line item booked to that account.

• If no discount account is configured, Measure applies the discount by reducing the pre-tax unit price of the original product line item.

Descriptions: If configured, the billing period (for example, 01 Jan 2024 - 31 Jan 2024) is appended to the line item description.

Tax Mappings:

Taxes are mapped to Xero's TaxType field on the line item level. Measure dynamically applies the appropriate Xero tax code based on your integration tax mappings and calculated jurisdictions.

To ensure perfect bank reconciliations, Measure handles payments using a 3-step accounting flow in Xero. This separates the gross revenue from the payment gateway fees and mirrors the actual cash flow in your bank account.

When a payment is captured in Measure, the following objects are created:

1. Invoice Payment (Gross Amount): Mapped to a Xero Payment ( ACCRECPAYMENT). This records the full gross payment applied against the target Invoice. The funds are deposited into a configured Clearing Account (for example, a Stripe Clearing account).

2. Gateway Fee (Expense): Mapped to a Xero BankTransaction (Type: SPEND). This records the gateway transaction fee (for example, Stripe fees). The fee is deducted from your Deposit Bank Account and booked against your configured Transaction Fee Account.

3. Net Transfer: Mapped to a Xero BankTransfer. This records the movement of the net settlement amount from the Clearing Account into your actual Deposit Bank Account. This perfectly mirrors the actual payout deposit you receive on your bank statement.

Credit Notes:

When a Credit Note is issued in Measure, it is synchronized as a Xero Credit Note (Type: ACCRECCREDIT). The line items on the credit note map to the exact 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 are only synced when they are formally part of an issued Credit Note.

Credit Applications (Allocations):

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

Refunds:

In the Xero integration, refunds are not pushed independently. A refund is only pushed when it is directly associated with an issued Credit Note.

When a payment is refunded to a customer in Measure (a cash refund associated with a Credit Note), Measure synchronizes this as a Xero Payment (Type: ARCREDITPAYMENT). This payment is applied against the associated Credit Note and is drawn directly from your mapped Deposit Bank Account.