Using the Integration to Post to Xero

MarginDriver's Monthly Accounting Tasks features walks user through a simple, five-step process for performing their account receivable reconciliation and posting their sales revenue and COGS to popular cloud accounting software, such as Xero. Tasks #2 and #4 require the user to post journal entries to Xero.

Below is a summary of the journal entries for each ecommerce sales channel that MarginDriver pushes to Xero in Task #2. The journal entries are posted to Xero when the user clicks Post to Xero.

Task #2 Journal Entries

• Product Revenue & Accounts Receivable (A/R)
• Product Revenue - Credit
• Sales Channel A/R - Debit

• Shipping Revenue & A/R
• Shipping Revenue - Credit
• Sales Channel A/R - Debit

• Product COGS & Accounts Payable (A/P) Inventory
• Product COGS - Debit
• Inventory - Credit
•  Reducing inventory account by the amount of the products COGS for transactions taking place that month

• Shipping COGS & A/P Shipping & A/R
• Shipping COGS - Debit
• A/P Shipping - Credit
• Increasing amount owed to shipping carriers
  
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• Fees & A/R
• Fees - Debit
• Sales Channel A/R - Credit
• Reducing the amount owed by the sales channel to the user

•  Balance Sheet Only Transactions
• Amazon/Other Capital - Debit
• Sales Channel A/R - Credit

• Sales Tax & VAT (collected from customer at checkout)
• Tax Payable Accounts - Credit
• Sales Channel A/R - Debit

 In Task #4, users can post a reconciling journal entry to bring their general ledger A/R accounts in order to bring them in line with the third party A/R balance (see Accounting Task #3).