Configuring the Xero Add-on

Updated on February 20, 2020

Congratulations!. You have now decided to connect your Xero accounting system and Troly to make your accounting and bookkeeping life much easier and most importantly, accurate.

As covered in details in Automate your Accounting with Xero, once this Add-on is configured you'll receive, in Xero:

  • a daily end-of-day sales summary for all connected sales channels (POS, website, wine-club, etc) with revenue category breakdown and expected cash and other deposits.
  • a monthly cost summary covering software, banking, shipping and other commissions for referral sales.
  • trade sales and wholesale transactions with full customer details.

Configure your Accounts in Xero

For a smooth configuration process, configure all required Accounts in your Xero Chart of Accounts (including the type of account and capability of clearing payments) before you begin the installation in Troly. Without this, refreshing the list of accounts known to Troly will require to uninstall and reinstall the Add-on before it can be fully configured.

Chart of Accounts Configuration

Troly will report revenue, expenses and expected funds movements in separate accounts.

  • Revenue accounts as used by Troly to report on all product sales, shipping and credit card surcharge.
  • One or many Expense accounts are also required to report shipping, payment processing and some marketing expenses (such as SMS messaging).
  • Current Liability and also Asset accounts are used to clear funds in escrow and expected bank deposits.

You must have at least one account for each of these types and if required make sure to discuss the concept of Clearing as Current Liability or Asset with your accountant.

Enabling payments posted to a clearing account

In order to record payments processed outside of Troly against your chosen clearing account, make sure to check "Enable payments to this account" on each clearing account.

Note that some EFT providers withhold their fee upfront and as a result, the amount expected, and amount received may differ.

Troly may withhold sums owed to 3rd party providers for the cost of services, such as banking and shipping fees. These are recorded against the Fees Withheld account and will be cleared automatically later in the month.

Authenticate Troly with Xero

To install the Xero add-on, simply go to Add-ons → Xero and click the Install button. You’ll be redirected to the Xero website to log into your account.

You can then click on "Allow Access" to let Troly access the required configuration details before getting redirected to the Xero Add-on page in Troly to continue the configuration.

Revenue and Expenses Reporting

For each product category configured in Troly (under "Category" in the Product Information page), select the Revenue account to report on sales into. Products without a category assigned will be reported under "Sales of other products".

Revenue not directly liked to the sale of products can be assigned to the correct account, also.

Finally, assign a Rounding account for the few occasion where +/- 1¢ needs to be added because of how Xero handles sales taxes.

Choose your Clearing Accounts

You can choose and account for each payment, effective wine taxes (Australia only) and optionally withholdings.

Automate like the experts

Due to the nature of each clearing account, experts create custom bank rules in Xero to automatically assign certain deposits or payments sent against the correct clearing account. Consider discussing this with your accountant.

Remember; some EFT providers withhold a processing fee upfront and as a result, the amount expected and the amount received may differ. This would also require you to process the supplier invoice payment against the correct clearing account also.

Wine or liquor taxes payable

Because Xero doesn't calculate regional wine taxes very well, Troly will also report onto any payable amounts in a separate Wine Tax account. In Australia, this is known as Wine Equalisation Tax (WET) liability and your accountant can help in clearing this account either via payment or manual journal.

Troly and Miscellaneous 3rd Party Fees

Troly charges can be broken down into three categories. To understand how we charged, please read Troly Pricing, Fees and Other Costs Explained.

  • Platform access fee: is the monthly, flat-fee charged for using the service
  • Usage Fee: is based on how much storage, customer intelligence, and sales are processed
  • Additional Support Services (optional): is the additional fees charged for premium support services and account management.

Finally, select the associated Expense account you wish to report against for each of the following categories:

  • Marketing charges: this includes sending SMS messages, printing gift cards or greeting cards, etc.
  • Transactions charges: fees that may be incurred by your chosen payment gateway
  • Shipment charges: couriers or shipping fees incurred as orders get dispatched

Daily Reconciliations of Sales

Matching daily sales

Every day, Troly pushes a sales invoice, and every day (or less frequently, depending on your payout schedule) funds will be remitted over to you. When funds arrive:

  1. Click on the 'Match' tab to the top, right half of the screen
  2. Under "Search by name or reference" enter Troly
  3. Search for the day in question and check the box on the left
  4. The transaction may be off by 1cent due to rounding, as below

Applying credit notes

For a given day, any refunds recorded in Troly are translated into Xero as a single Credit Note for the day. Prior to reconciling any amounts, make sure to apply the credit note onto the current day sales.

Unfortunately, due to limitations in the Xero infrastructure Troly is not able to automate this process.

Finally, note that Credit Notes that came from a cash or EFTPOS refund will already be assigned to the correct clearing account for ease of reconciliation.

Clearing actual deposits

Many accountants and bookkeepers are comfortable with Xero bank rules. If yours is, they may suggest creating a bank to appropriately assign certain deposits (cheque, cash, eft) to their respective Cleaning account.

Additional Xero Operations

On-demand data synchronization

Financial data will be automatically sent to Xero on a daily and monthly basis from the day the add-on is fully configured.

If required, you can request for a specific day or range of data to be uploaded on-demand. A new tab named synchronization will appear after a successful save.

Refreshing the list of accounts

Finally, if you have created, changed or removed an account from Xero, or created a new product category. Troly does not automatically do this automatically.

Thinking of asking expert help from Troly?

Our team will never ask for your Xero credentials directly. If instructed as such, you may add our senior teams to your Xero file as follows:

  1. In Xero, go to Settings, then click General Settings
  2. Click Users, then Invite a User
  3. Enter the following account details:
    1. First name: Troly
    2. Last name: Support
    3. Email:
  4. Select Standard account access permissions with Cash Coding and All Reports
  5. Click Continue

Need to understand more?

If you are having issues with operating your Xero add-on, a list of most common issues is available in our Troubleshooting Xero article. 

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