PracSuite integrates with Xero to help you reconcile the payments you're recording in PracSuite with the settlements you're receiving in your bank account. This article outlines how the integration works so that bookkeepers understand the data flow and intent, as well as the steps to configure the integration.
Overview: How PracSuite Syncs with Xero
Key Points
Daily Summary Sync: Payments entered in PracSuite are synced to Xero as daily totals per payment method. We don’t mirror individual invoices from PracSuite to Xero.
Purpose of the Integration: This process makes it easier to reconcile what was recorded in PracSuite with the payments settled into your bank account.
Invoice per Payment Method per Day: PracSuite creates one invoice per payment method for each synced date in Xero. For example, if on 1 May you took payments via Cash, EFTPOS, and Bank Transfer, three invoices will be created in Xero.
Invoices Are Automatically Paid: These invoices are marked as paid in Xero using intelligent logic to match how payments are settled into your bank account. The payments we create in Xero include detailed reference information to assist with reconciliation. For example:
Bank Transfers: Payments entered in PracSuite as bank transfers are created individually in Xero and applied to the relevant daily 'Bank Transfer' invoice. Each payment includes the payer name and remittance number from PracSuite.
Medicare and DVA: Payments are created individually per practitioner, and the payment descriptions in Xero include the provider number. This mirrors how Medicare and DVA settlements appear on your bank statement.
General Bookkeeping Workflow
When using the PracSuite Xero integration on an ongoing basis, the general workflow for bookkeepers is:
Apply payments to invoices in PracSuite for the date range you're planning to sync.
Once all payments for a specific date have been entered in PracSuite, sync that date to Xero.
You cannot re-sync a date, so ensure the day’s takings are final before syncing.
Use Xero’s reconciliation tools to match the invoices and payments PracSuite created with the transactions on your bank feed.
Common Misunderstandings
No 1-to-1 Invoice Syncing: We don’t create an invoice in Xero for each invoice in PracSuite. Instead, we summarise the payments.
Outstanding Invoices Are Not Relevant: The integration is focused on payments applied to invoices, not on tracking which individual invoices in PracSuite are still unpaid. Whether an invoice in PracSuite is outstanding does not affect what gets sent to Xero. You can manage owing invoice in PracSuite directly using the Outstanding Invoices and Account Balance reports.
Refunds Are Not Synced: Refunds are not included in the Xero sync. If you refund a payment, you’ll need to manually adjust this in Xero.
Tips for Success
Start by testing the integration using a Xero demo or test organisation.
Only sync once all payments received in your bank account on a particular date have all been applied in PracSuite.
Speak to your accountant or bookkeeper before syncing to ensure the chart of accounts and sync setup align with your business needs.
For detailed configuration and step-by-step instructions, continue with the rest of this guide.
Below is an overview of the data flow between PracSuite and Xero:
Before using this integration, please note that Xero does not provide any means to reverse an upload made to their system. We strongly suggest that you test your integration using the ‘Demo Company’ organisation before uploading data to your live (production) Xero organisation.
We provide the Xero integration 'as-is' and users must assess for themselves whether the integration is suitable for their professional use. It is assumed that all data being uploaded to Xero has been finalised, with no further changes expected, before it is uploaded to Xero. There may still be situations that require manual adjustments in Xero.
Smartsoft Pty Ltd is not responsible for any unwanted changes to your Xero account.
Table of Contents
Step 1 - Creating a Xero organisation
To integrate Xero you will first need to create a Xero account and Organisation, if you do not already have one available. If you are new to Xero, it is essential to work with your accountant or bookkeeper to configure your Xero accounts in a way that suits your accounting and taxation needs. These accounts will then be set in PracSuite to determine where invoices and payments are uploaded within Xero.
We strongly recommend using the ‘Demo Company’ organisation to trial the integration and confirm the uploaded data is appropriate for your accounting needs.
1) Navigate to https://www.xero.com/signup
2) Enter your details and click Next: Confirmation.
You will be sent an email to verify your account.
3) Following the email instructions, activate your account in Xero by entering a password.
4) Add your business details and click Start trial.
On completion you will be directed to your Xero dashboard, where your organisation name should be displayed in the top left of the screen.
5) Rather than use the Demo Company we recommend you create a new 'dummy' organisation titled 'PracSuite Xero Testing' or similar, where you can safely trial the uploads from PracSuite to Xero.
Step 2 - Creating Xero accounts
Accounts are an important part of the Xero system and fundamental to the integration with PracSuite. When syncing to Xero we need to know where PracSuite should create sales invoices, along with where to allocate payments. We recommend planning your account setup with your bookkeeper or accountant for best results.
Expand the section below to view further details on creating accounts in Xero
How to create accounts in your Xero trial account
How to create accounts in your Xero trial account
1) From the Xero menu, click Accounting and select Chart of accounts.
The Chart of accounts is used by Xero to categorise transactions, such as those we will be uploading from PracSuite. Default accounts are available, but if required you can create additional accounts.
2) Click the Add Account button.
3) Enter details appropriate for a Sales/Invoices account, then click Save.
Below is an example for a 'Sales' account.
4) Click the Add Bank Account button and link your Bank Account to Xero.
Follow the prompts to create a bank account in Xero.
Please note that for use of the Reconciliation features in Xero, this should be selected as your 'Payments' account in PracSuite.
5) Repeat as needed to create additional accounts.
If needed, PracSuite allows users to:
Upload each payment method to a unique account.
Create sales invoices in unique accounts depending on which Item Schedule the payment was allocated against.
Create sales invoices in unique accounts depending on which Item the payment was allocated against.
All of which can be set per Business in PracSuite.
Step 3 - Configuring PracSuite for Xero integration
With your Xero account configured, you can now enable the integration features in PracSuite and begin your upload configuration.
1) In PracSuite, Go to Settings > Integrations > Xero.
2) Enable the Xero Integration.
3) Click the Add button, after which you will be prompted to login to your Xero account.
4) Select the Organisation you wish to integrate with, and then click Allow access.
If you do not see the 'Organisation' drop-down at the top of this screen, it means you only have a single organisation available in Xero and it has been selected automatically.
We strongly recommend using a 'Demo' organisation to test your integration, where you can safely upload data without consequence. You can later repeat this process and connect to your live organisation, once you have verified the settings and resulting uploads are correct for your business.
Once you have allowed access to your Xero organisation, a corresponding 'organisation' will be created in PracSuite where you can configure the integration options.
5) Select the default Sales and Payment accounts to be used.
In the selected Sales Account, PracSuite will create an invoice per date per payment method for the payments received from that payment method.
In the selected Payments Accounts, PracSuite will create payments per date per payment method and apply them to the associated invoice created in the Sales Account. The Payment Account is generally the bank account into which your payments are settled.
If you do not see your bank account in the payments drop-down menu, ensure that you have allocated an account code to your bank account within Xero from the Accounting > Chart of Accounts section.
These are the default accounts to be used when no further overrides are specified on the Business, Payment Method, Schedule or Item Code.
6) In the Businesses section, click Add and select the businesses associated with this Xero organisation.
Any payments added to PracSuite for the selected business will be uploaded to this Xero organisation.
By default the totals for these businesses will be uploaded separately into Xero. If you require these totals to be consolidated, use the Consolidate checkbox to select which businesses should have their totals combined.
7) Payment Method Overrides can be configured if required. These overrides control which accounts certain payments will be synced to in Xero.
Optionally, you can also choose whether to:
Exclude Payment Methods from Xero Sync
Ideal for payment methods that you do not want to sync to Xero as income received (such as when gift cards are used to pay off items).
Consolidate Credit Card Payments
This determines if 'Credit Card' payments should be uploaded as a single total, or with separate totals for 'Visa' and 'Mastercard' etc.
Consolidate Health Fund Payments
This determines if 'Health Fund' payments should be uploaded as a single total, or uploaded separately based on whether the payment was entered manually or using Tyro Health Online or Tyro Health EFTPOS.
8) Schedule Overrides can be added if required. This can be used to specify a different Sales Account to be used when the payment has been allocated to an Item Code within the specified Schedule.
9) Item Code Overrides can be added if required. You can configure the following types of Item Code Overrides:
Exclude Item Codes - PracSuite will not sync payments applied to these specific items. This is ideal for Tyro EFTPOS users that apply surcharges to card payments. We are required to include these items on invoices when using the Tyro EFTPOS integration, however as surcharges are deducted from your transaction fees and are not settled to your bank account daily, they can be excluded from the Xero sync process so that these amounts don't interfer with reconciliation workflows.
Override Item Code Account - This can be used to specify a different Sales Account to be used when the payment has been allocated to a specific Item Code.
Overriding Account Settings Per Business
If you are syncing multiple PracSuite businesses to the same Xero organisation and you require payments to be synced to Xero to separate accounts, you can configure Xero account overrides per business.
Under the Businesses section, select the Account Setup button and repeat the steps above to configure your preferences for that specific business.
The business-specific configuration will take precedence over any settings on the main Xero page.
Step 4 - Syncing to Xero
Once your Xero account has been integrated with PracSuite and configured correctly, you are now ready to sync your payment totals to Xero.
Please ensure you have recorded all payments for the date range you are planning to sync in PracSuite. Once a date range has been synced to Xero, it cannot be synced again.
1) Log in to PracSuite and navigate to Settings > Integrations > Xero.
2) Select the Organisation from the displayed list.
3) Click the Sync Now button.
4) When syncing to Xero for the first time, you will be able to specify both a Start Date and an End Date. PracSuite will upload payment totals for each date in this range.
Enter a Start Date and End Date, then click Sync.
Please note when clicking Sync in the future you will only be able to specify an End Date and not overlap past upload periods. You cannot re-upload dates that have already been synced to Xero.
Congratulations, you have successfully used Xero integration.
Step 5 - Sync Log and Resync
If you believe an upload to Xero has failed, the Log is available to view and allows you to attempt resyncing the failed upload.
1) Log in to PracSuite and navigate to Settings > Integrations > Xero.
2) Select the Organisation from the displayed list.
3) Select the Log option.
This will provide a summary of Completed and Failed uploads to Xero.
If the Sync Status is 'Failed' you will be able to expand the grid to see additional details.
In this example we can see the failure description is 'Account could not be found', which suggests the account in Xero is no longer available or has changed name or ID. This can be resolved by using the 'Reload Accounts' option in PracSuite and ensuring your have a valid payment account selected.
Once resolved, you can return to the Log and select the Re-Sync option to attempt the upload again. Alternatively, you can choose the Ignore option if you want to resolve this failure manually or re-syncing is not a viable option.
Frequently Asked Questions
I’m not familiar with Xero, how much support can Smartsoft provide?
Smartsoft can assist with integrating your PracSuite system to Xero, however we cannot provide assistance with the use of Xero itself. This includes the creation of your Xero account, along with the creation of individual accounts and bank reconciliation. Further, we are not accountants and cannot provide financial or taxation advice.
Do I really need to start with a trial organisation in Xero?
We strongly recommend beginning with a trial organisation in Xero. This will allow you to verify your account mapping between PracSuite and Xero, while also confirming the results match your expectations. If you upload to the wrong account or are not satisfied with the resulting information in Xero, please note it cannot simply be reversed or deleted.
I am ready to sync to my trial organisation in Xero, where should I start?
We recommend you start by syncing a period from several months ago, then verify the results.
You should confirm:
Invoices and Payments are uploading to the correct accounts
Your accounts are balancing as expected for the period.
If you are connecting to multiple Xero organisations, confirm the split of invoices and payments is accurate.
The setup of Xero meets the needs of your accountant or bookkeeper.
I’m ready to begin using a live Xero organisation, what should I do?
When you are ready to begin uploading to your live Xero organisation, you should:
1) In Xero, re-create the account setup from your trial organisation into your live organisation.
2) Following Step 3 of this guide, integrate your live Xero organisation with PracSuite.
3) In PracSuite, copy the settings from your trial organisation into your live organisation.
4) When satisfied that your 'Live' setup matches your 'Demo' setup, which you have previously verified, begin by syncing a small date-range to ensure there are no issues.
Verify your results before proceeding with larger ranges.
My Xero balance isn’t correct, what should I do?
Depending on your Xero setup there are several reasons your balance might seem inaccurate. For example, if you’ve split payments across multiple businesses, and those businesses are uploading to different Xero organisations, the balance may not reflect as you are expecting.
It is recommended that you use the Reconciliation report (Reports > Billing > Reconciliation) and compare small ranges of data, and narrow down any discrepancies to the smallest range possible. Please ensure you are filtering the Reconciliation report to match your Xero upload before comparing results.
Smartsoft can only provide limited support in identifying discrepancies and comparing reports or balances. You will first need to locate a specific date and payment method that is causing the discrepancy before we can assist.
I’ve made changes to a previously synced accounting period, what should I do?
Sync periods are final, and once a period has been uploaded to Xero you cannot make further changes. For this reason we highly recommend only syncing closed and verified accounting periods.