Exporting Invoices, Payments and Clients to Xero

This explains how to export your Power Diary generated Invoices and Payments to Xero.  Xero is cloud based accounting system used worldwide by many small and medium sized businesses.


Overview

To export your data from Power Diary to Xero, go to Tools >> Export to Xero and connect to Xero from Power Diary.  The first time you do this you will need to setup some parameters in Power Diary, such as your default sales codes and tax codes.  Then, you select the date range you wish to export and you will be shown a list of invoices and payments.  Select the items you want to export and click the Export button to send them to Xero.  Voila, your data is in Xero!

Please read on below, because there is some important concepts you need to understand to be able to use this properly.  It's particularly important that you understand Xero's rules about what can and can't be exported to Xero.

 

General Information about Exporting to Xero

Exporting from Power Diary to Xero is done in batches.  Some other systems export invoices when they are created, however we consider that it is better to do it in batches, because it doesn't slow down the normal operation of Power Diary and it allows you to manage invoicing and payments in Power Diary and then bring it into your accounting system (Xero) at a time of your choosing.  There are a number of business rules that Xero enforces (see bottom of page) and these could impact the way you use Power Diary if the invoices and payments were exported to Xero live.  For example, one rule is that an invoice can't be modified once it has had a payment applied.  We think this rule is a bit limiting, so exporting payments at the latest possible time is recommended.

Also because exporting is done in batches and not live, Power Diary doesn't need to store your Xero login credentials or even an access token, so you can be very confident that access to your information in Xero is secure.

 

Prerequisites

You will need a Xero account.  Free trial accounts can be obtained from www.xero.com.  If you have an existing account and would like to try the Xero Export, you can create a new trial organisation within your Xero account and use this to test.


Initial Setup

  1. To export your data to Xero, go to Tools >> Export to Xero and click on "Connect to Xero".  You will be redirected to Xero and requested to log in.  Note that you are entering your Xero login details on Xero's website, not Power Diary.  Once you have logged into Xero you will see a screen similar to the following:  
  2. Select the organisation you wish to allow Power Diary to export to, and then click "Authorise". You will be redirected back to Power Diary.  This will allow Power Diary to export data to Xero for the next 30 minutes.
  3. The first time you export to Xero you will need to provide some additional information.  Click on the "Show Xero Settings" button to configure.  This will retrieve some data from Xero (it may take a few seconds to load) and show you a screen asking you to nominate which account in Xero is your bank account, sales account and also it will ask you to link the tax codes that you have in Power Diary with tax codes in Xero.  Click "Save" when you are done.

Note: You may wish to use a Payments clearing account to enable easier reconciliation of payments.  Please see the section below entitled "Payment Reconciliation in Xero" for more information.

 

 

Exporting Invoices

  1. If you are not already connected to Xero, click on "Connect to Xero".  You will be redirected to Xero and requested to log in.  Select the organisation you wish to allow Power Diary to export to, and then click Authorise. You will then be redirected back to Power Diary.  This will allow Power Diary to export data to Xero for the next 30 minutes.
  2. Select the date range that you wish to export and click "Load Data".  Exporting must be done in batches of less than 1000 invoices at a time, so you may need to choose a weekly or monthly range depending on the number of invoices generated by your business. You will see all invoices that have had activity within this date range (added, edited or payments received)
  3. Select the invoices you wish to export.  You can select invoices individually or use the tick boxes to select multiple invoices. "All" - All invoices "New" - Invoices that have been added since the last export to Xero. If you need to edit an invoice or wish to update a single invoice without reloading the entire list (and losing your selection), you can right click for more options: 
  4. Select the Invoice Status you wish to use when creating or updating the invoices in Xero and click "Export Selected Invoices to Xero". 

  

If invoices are exported in "Draft" status, then they can be edited and deleted in Xero, but payments can't be applied.  If you initially export them in "Draft" status, then you can re export them later in "Approved" status. 



Exporting Payments

Invoices need to be exported and have an "Approved" Status in Xero before associated payments can be exported.

  1. Connect to Xero and select the date range you wish to export as per exporting invoices.
  2. When you have retrieved a list of invoices, click on Payments.  You will see a list of payments in the grid below.
  3. Select the payments you wish to export.  All payments will show in the list.  If you attempt to select a payment that isn't valid for export (eg. the invoice hasn't been "Approved" yet, then you will see a red error message.
  4. Click "Export Selected Payments to Xero" to export them to Xero.

 

Rules Enforced by Xero

There are a number of rules enforced by Xero that we have no control over.  If you find that you can't export an invoice or payment, then you will need to manually enter it into Xero (or adjust Xero/Power Diary).  If you manually enter an invoice or payment, you can mark it as exported in Power Diary (Right click/Ctrl click on the item in the list and select "Mark and Exported").

  1. Invoices in Xero must have a status of "Approved" before a payment can be applied.
  2. Once a payment is applied, no further changes to that invoice are permitted.
  3. Invoices in Xero with a status of Approved can not be changed.
  4. Invoices in Xero with a status of "Draft" can be changed, but payments can't be applied.
  5. All payments must be assigned to an invoice (Power Diary already has this rule).
  6. Overpayments are not permitted by Xero (payments are more than the invoice amount).

 

Error Messages

Here are some common messages that Xero will return if you try to export Invoices or Payments that are invalid.

 

Xero Error Message Explanation
Invoice not of valid status for modification

 

You have tried to export the invoice in Draft status when it's already in Xero with another Status

 

Invoice not of valid status for modification, This document cannot be edited as it has a payment or credit note allocated to it.

 

The invoice is already in Xero and has payments recorded in Xero.

 

Payment Reconciliation in Xero

Credit card and Eftpos Payment reconciliation in Xero requires some special consideration because your merchant processor (credit card / EFTPOS provider) will deposit a single amount each day into your bank account, but Xero will have each individual payment recorded. 

To get around this, you should export the payments from Power Diary to a clearing account in Xero.  Then when you reconcile, create a receive money transaction, coding this to the payments clearing account.

This page has more detail: http://developer.xero.com/documentation/api-guides/handling-payment-processor-receipts-in-xero/