Accounting: How to connect Xero

Created by Katrín Magnúsdóttir, Modified on Mon, 29 Jul at 3:19 PM by Martin Gjorgjievski

Start with checking the setup in the PMS.

Go to Settings - System Settings - Hotel Features and enable Accounting Categories Feature and Accounting Categories Report:

Then save the changes.

Move on to Settings - Finance - Accounting Categories

You can edit the default accounting categories, and add new ones.

Xero will use those categories in your chart of accounts.

Connecting Xero and the PMS

In your Booking Factory account go to Settings > Finance > Accounting Systems.

Click Add Accounting System and select Xero.

A separate window will pop up from Xero asking you to log in (or just have a separate tab open, logged into your Xero account)

Make sure to 'Allow Access' to connect the PMS to Xero.

After setting up everything in Xero, this is how you will be reporting the financial data in Xero from your Booking Factory PMS

In the PMS, the Create Receipt button needs to be selected inside the guest folio to send financial data to Xero. The Create Receipt option can only appear if that folio has a 0 balance due.

It is recommended that the Create Receipt button is clicked when applying the final payment onto a folio. However, if you prefer to create your receipts on a daily / weekly basis see the Folio Report.

By clicking Create Receipt on a folio, the revenue and tax are not able to be changed and reports instantly to your accounting system. If a change needs to be made to an already receipted folio, you will be able to click Credit on the receipt. This will perform two actions - 1) creates a new receipt reversing the original receipted transactions and sends the reversal to Xero and 2) creates a new folio with the original transactions un-receipted ready for correction.