Important: Veeqo is not currently accepting new Xero connections at this time. This guide contains information for sellers who have already added this integration.
How Our Xero Integration Works
Veeqo pushes orders from Veeqo into Xero as sales invoices
Set cost prices in Veeqo for your products and every time an order is exported, we will create a journal in Xero to decrease your stock value and put into your COGS on your profit & loss in Xero. So you get accurate profits showing in Xero.
Create a Purchase Order to your supplier and we will create a supplier invoice in Xero.
We do not push Shipping & Handling column data from a Purchase Order CSV file to Xero
Map which accounts in Xero we should export your data into, we pull these from your Xero account.
Refunded orders do not update the order in Xero
We do not update stock quantity in Xero.
Before Connecting Xero
Add Advisor Option - so you can view COGS journals and approve
Add Stock on Hand Account - this is where we will add new stock value for PO’s raised in Veeqo
Set Starting Balance - this is the starting value of current stock in your location. We will add/subtract from this as PO’s/Sales Invoices are raised
We do not sync any actual Product Data or create line items - we only sync monetary values.
Veeqo should be your Product Information Hub
Connecting Your Xero Account in Veeqo
To connect Xero to Veeqo, see this guide.
Sales Invoices
Veeqo will send across any new sales invoices raised since the last sync. These will be sent either as a draft invoice (in which case client needs to authorise in Xero) or as an authorised invoice immediately depending on the settings
We will raise an invoice against the existing Xero contact if it exists or will create a new contact where necessary.
We will raise a Sales Invoice and automatically mark the order as paid providing you have set up a bank account with a code and set the preferences in Veeqo
Veeqo's integration with Xero will import your COGS into Xero, so you can see your gross profit in Xero for everything you've sold.
This is done by creating a journal for every sales invoice that's imported into Xero. This credits your "Stock on Hand" account and debits the "COGS" account.
This means we move cost of what you paid for an item from your stock account and put this amount into your profit and loss account.
You must post the Manual Journals once they have reached Xero
Setting Your Starting Stock Position For Xero
Setting Your Starting Stock Position For Xero
Veeqo's integration with Xero will import your COGS into Xero, so you can see your gross profit in Xero for everything you've sold.
This is done by creating a journal for every sales invoice that's imported into Xero. This credits your Stock on Hand account and debits the COGS account.
This means we move cost of what you paid for an item from your stock account and put this amount into your profit and loss account.
For this to work you need to ensure you have setup a Stock on hand account in Xero as an asset account.
If you haven't done this, then go to:
Settings > Chart of accounts > Add Account
The account type should be Current Asset name it Stock on Hand and give it a unique 3 digit code.
Once you have your stock on hand account setup you can then look into settings its opening balance, we recomened that you ask your accountant to help do this as the correct way it to do it by balance conversion, you can read more about this on Xero here: https://help.xero.com/uk/Settings_ConversionBalances
Xero Tax Settings
Xero Tax Settings
Important: We cannot provide you with tax information or tax advice, it is your responsibility to ensure any taxable income is correctly reported. If in doubt, you should seek independent professional advice. Figures in this guide are purely for the purpose of visualising the functionality within Veeqo and are not an accurate representation of the taxes you should apply to your orders.
There are two ways of syncing your orders from Veeqo to Xero, either Veeqo includes or excludes VAT to display on your invoices in Xero.
Exclude Tax
That either means you sell tax exempt products or want Xero to apply tax to your invoice rather than Veeqo.
Xero settings
For exclusively tax exempt products:
Set your Sales account's Tax Rate to No VAT
If you want tax to be calculated on your invoices then set your tax rates on your Xero account as per this guide
Veeqo settings
1. Click on Settings and select Accounting Integrations from the dropdown
2. For your Xero integration click on Preferences
3. For the Tax option select Exclude Tax
4. Then click Next and then Save
Include Tax
Tax calculated on your orders in Veeqo will be sent to your Xero. Here is how you enable tax calculations for your eBay and Amazon stores. For Magento, WooCommerce and Shopify, you need to enable tax calculations directly on your store rather than Veeqo.
Xero settings
Set your Sales account's Tax Rate to No VAT
Veeqo settings
1. Click on Settings and select Accounting Integrations from the dropdown
2. For your Xero integration click on Preferences
3. For the Tax option select Include Tax
4. Then click Next and then Save
Triggering a Xero Stock Push
Triggering a Xero Stock Push
Go to Settings > Accounts and click on the Sync button
2. Log into your Xero Account and go to Accounts > Sales
3. On your Sales page, click on See all next to Invoices.
4. You will see your orders from Veeqo in your Invoice section in Xero
Orders not syncing to Xero?
Veeqo will only export orders created after you first connected Veeqo to Xero, so we will not import historic orders.
We export orders from Veeqo based on their orders status and the option you set in Xero preferences for "Invoice Status" which gives you the option to sync open or closed orders.
How Veeqo Works With Xero and COGs
All orders in Veeqo are exported into Xero, when this happens we create a journal within Xero for the COGS (Cost of Goods Sold). This journal decreases (credits) your stock on hand account and increases (debits) cost of goods sold COGS account.
This is done so that when you look your profit and loss report in Xero, you will see an accurate gross profit for each day. It also makes sure that the stock showing on your balance sheet is accurate.
How does Veeqo calculate cost price for a product?
We use the cost price you entered in the product details. If you send purchase orders in Veeqo, then we will record the price you pay every time and work out the average cost price, so even if you buy the item had different prices, it will be accurate.
These journals are posted as in DRAFT status, so you will need to log into Xero to confirm they are correct. You can view them in Xero by ADVISOR > MANUAL JOURNALS, if you can not see this menu option, then please read this to enable it for your user.
How does Veeqo know which is my stock account and COGS account?
When you setup your Veeqo and Xero integration, you can choose which accounts in Xero are your stock and COGS accounts, we pull these from your Xero account.
FAQs
How do you write off stock in Veeqo?
You can’t currently write off stock in Veeqo. You would reduce the stock levels in Veeqo to ensure you dont oversell on your platforms but in terms of accounting this would need to be managed directly in Xero.
How are COGs calculated?
Set cost prices in Veeqo for your products and every time an order is exported, we will create a journal in Xero to decrease your stock value and put into your COGS on your profit & loss in Xero. So you get accurate profits showing in Xero. If you use Veeqo for creating Purchases Orders then we will automatically recalculate the average Cost Price of your products.
Alongside the physical cost, we have other elements that make up the COGs including packaging, royalty and a fulfilment house service charge. How do all these get rolled up into COGs?
Veeqo, as standard, handles only the average “cost price” to you as a business to purchase the physical product. You would need to either manually adjust the cost price of your products in Veeqo to include any additional costs or periodically add manual entries for any additional costs with regards to order processing.
I have a direct feed from my sales channel into our accounting software, but I still need some information to come across from Veeqo, how can I manage this?
If Xero is integrated to Veeqo then we will create Sales Invoices & Payable Bills for Suppliers for ALL Orders and Purchase Orders raised in Veeqo. You cannot select which information is/isnt synced.
How often is data synched to our accounting software?
Manual sync, every time you hit the sync button in Veeqo we will push the information across to Xero
Can I sync orders from just one sales channel?
Unfortunately not, we sync all orders in Veeqo to the Xero account integrated. If the integration is set up with sales channel mapping, any sales channels not mapped will have orders belonging to it synced to the default sales channel of the integration (usually with code 200).