GST and Xero Integration

  • 1
  • Problem
  • Updated 11 months ago
  • Not a Problem
We have integrated with Xero, but find that after sync we cannot differentiate transactions that included GST. This becomes a problem when generating the BAS in Xero.
Is there a guide to ensure GST transactions are synced correctly please.

Further to this we are seeing the synced transactions showing as PAID in Xero, which seems to be making reconciliation more complex.

So far we have dedicated about 20 hours between myself, our practice manager, and a Xero expert Bookkeeper, and it's just not working.
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Damian Gough

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  • frustrated

Posted 11 months ago

  • 1
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Andrew, Community Manager

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Hi Damian

There are 3 integration types, and I can confirm GST is handled correctly in all three, as recommended by Xero. 

If all of your invoices are paid off in Xero, it sounds like you are using Daily Summary mode. Daily Summary mode uploads your daily income to Xero, and splits payments into GST and non-GST amounts, again following Xero's guidelines. Please see the image below, which shows an uploaded invoice with GST on the Xero website.

To our best ability these payments are further separated by how the patient paid the account to assist with bank reconciliation. Outstanding transactions are not uploaded to Xero when using this mode, with accounts receivable still being handled by Front Desk. Our beta testers found that this type of integration worked well with Xero's bank reconciliation for users operating on a “CASH” basis for taxation purposes, but it's possible that one of the other two integration modes would better suit your needs.

Though we are happy you go it alone, we do offer a service to guide you through the set up of the integration, which is not trivial. A link for this service can be found here.

At this stage we are changing the status of this post to 'Not a Problem' unless we can confirm there is an issue. 
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Damian Gough

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Thanks Andrew,

I now understand that our problem is because we use accrual accounting.

Not sure if this was made clear from the start, but definitely a point to clarify for new users I think.

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Tony Taddeo, Managing Director

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Hi Damian

We did our best to make this point clear. It is mentioned in several sections in the Xero integration documentation found here, starting with the following on first page:

Importantly, you will need to decide on your integration mode, which cannot be easily changed in the future. If your accounting for taxation purposes is on a ‘cash-basis’, the Daily Summary mode is recommended. If your accounting is based on an ‘accrual’ method, the Detailed or Detailed - Single Contact modes of integration can be used with the Detailed - Single Contact generally recommended. More information about the integration types can be found in this document.

I am pleased, however, that you have raised the importance of selecting the correct integration type based on your individual needs, with 'Cash' or 'Accrual' tax accounting being your first decision point.

You will now need to manually reverse the transactions copied over in the sync to Xero or create a new test Xero account. I'm hoping you did note our strong suggestion to initially try the integration with a test account. Please contact our Helpdesk for assistance to reset your Xero integration

The Xero integration will be a great time saver once you have it working.