For Franchise Partners with a new Xero account and that have nominated for financial data to be migrated across from NetSuite, the account will include the following:
Conversion Balances: Balance Sheet and Profit & Loss account balances as of the conversion date. This is the financial snapshot taken from NetSuite as at your books balanced date. For more detail click here
Outstanding Supplier Bills: Outstanding supplier bills as of the conversion date. Supplier bills after conversion date are not imported and need to be manually created by FP after Go-live.
Outstanding Customer Invoices: Outstanding customer invoices as of the conversion date (awaiting payment status), and all (paid or open) invoices created between the conversion date and up to 5pm the night before your Go-live (Draft invoices waiting approval).
Additionally, your bank and credit card account feeds should be active. For assistance in setting up Xero bank feeds, please refer to the following article:Finance Prep | Setup of Xero bank feeds
Conversion date | From Conversion date - Up to 5pm night before Go Live | |
Balances | Balance sheet accounts | - |
Customer invoices | Outstanding only | All |
Supplier bills | Outstanding only | None |
Existing Xero Account
For Franchise Partners with existing Xero accounts, some or all of the above may apply depending on how you were using your Xero account and what was agreed between you and the data migration team.
Steps to get Xero up to date
Additional information for each step below is provided further down in this document.
1. Customer Invoices: Invoices & Cash Sales from the conversion date to 5pm the night before the Go-live date will be loaded into Xero as Draft Invoices (incl. cash sales transactions), pending approval by Franchise Partners. Record customer payments on the invoices based on the deposits in the bank account.
2. Supplier Bills: Bills from conversion date up to go-live date are not imported into Xero and will need to be manually created in Xero by the Franchise Partner. Record payments on the supplier bills based on withdrawals from the bank account or credit card payments.
3. Reconcile bank account from conversion date onward: ensure bank statement lines from conversion date have been loaded into Xero including all transactions from your bank accounts, and reconcile bank accounts.
Statement lines that pre-date your conversion date
If you set up your bank feeds early you may see statement lines that pre-date your conversion date. These can be removed by following the instructions further below.
Video recordings
Before you start, we recommend that you watch these short videos to gain a better understanding of how to get your Xero account up to date.
Customer Invoices:
- Sales overview (3 mins) - brief overview of the different types of invoices
- Create invoice & approve invoices: (2 mins)
- Recording invoice payments in Xero (3 mins)
Supplier Bills:
- Create a bill (2 mins)
- Recording a bill payment (3 mins)
Bank reonciliation:
- Import bank file of transactions (2 mins): used if bank feeds not actived or transactions missing from bank feed
- Manually enter bank transactions (2 mins): used if bank feeds are not activated and/or transactions don't download in bank files to bulk import.
- Reconcile bank deposits & Windcave undeposited funds: (9 mins (updated 11.09.2024) includes review of the undeposited funds account in Xero (NB: please refer to notes further below on which windcave payments should be matched against the undeposited funds account & which windcave payments need to be matched against specific invoices)
- Reconcile supllier bills & spend money transactions (5 mins)
- Delete & restore transactions (2 mins)
1. Customer Invoices
Customer invoices and cash sales from the conversion date up to 5pm the night before the Go-live date will be loaded into Xero as Draft Invoices (incl. cash sale transactions), pending approval by Franchise Partners. For any invoices created in NetSuite after that time, may need to be manually created in Xero by Franchise Partner.
Rounding differences
Some invoices may show a small rounding differnce (usually 1c). This is due to the way Xero calculates GST. These can be applied as bank fee or small adjustment during the reconciliation process. For more info click here
REVIEW AND APPROVE DRAFT INVOICES
Navigate to Business tab > Invoices > Draft tab.
Franchise Partner will need to approve the draft invoices by either:
- Bulk approval: Check the box on each invoice line and click on “Approve”, or
Individually: click on each invoice individually, review and then select “Approve” from the drop down menu in the top right hand corner. If you click on “Approve and email” the customer will be sent the invoice via email.
If you need to manually enter additional invoices go to the menu Business > Invoices > New Invoice.
On the New Invoice screen complete the necessary fields
Customer invoices can be marked as paid during the Bank reconciliation process by matching bank deposits to invoices.
2. Supplier Bills
Enter supplier bills dated after the conversion date.
Navigate to Business > Bills to Pay > select the New Bill button.
On the New Bill screen complete the required fields
Supplier bills related to inventory purchases
At conversion date, your inventory account dollar balance from NetSuite will be migrated to Xero.
Inventory product quantities
Inventory product quantities are not imported into Xero because quantities will be managed in Lightspeed
- Manually enter the product bills into Xero from the Conversion Date to the Go Live Date.
- If PO was receipted in NetSuite before conversion date and the bill date after conversion date, then the bill should be coded to the 2500-001 Accrued purchases account. This should offset the conversion balance in your accrued purchases account.
- If PO was created and received in NetSuite after conversion date and bill date is after conversion date, then the bill should be coded to the Inventory account (1400-001 Inventory) and will increase the dollar value of the inventory account.
- Manually enter a journal for the Cost of Goods Sold (COGS) component of NetSuite sales from the conversion date to the Go-live date. We recommend this is done in bulk on a monthly basis (so COGS is consistent with the monthly sales). This will decrease the dollar value of the inventory account (eg run your P&L and select the relevant month at the bottom of the report (please note: this is assuming that you have stopped creating further transactions in NetSuite after your Go-live date).
Review your COGS accounts and enter journal accordingly in Xero.
eg: DR Xero account 5000-100 COGS & CR Xero Account 1400-001 Inventory. Please consult with your accountant / bookkeeper if you need further assistance for the exact journal entry for your franchise.
This should achieeve having the Xero inventory balance equal to the NetSuite inventory balance at the Go-live date.
3. Reconcile bank account
Your bank feeds should be connected. To verify if the bank feeds are active, on Xero’s Dashboard (home) page click on the 3 dots beside the bank name, under the Bank Feed heading it will say “activated” or “refresh bank feed” if it is working. See examples below.
Review each bank and credit card account to ensure that all transactions in Xero are complete and match the transactions in your online banking for the period starting from the conversion date. This includes entering any money spent or received during the period, such as:
Client payments received
Windcave deposits received
Bills paid
If any transactions are missing in Xero, they will need to be manually entered or imported. To review the transactions in Xero, click on the bank account name on the Dashboard screen and go to the “Bank Statements” tab.
To manually enter missing transactions from the Bank account page, click on Manage Account and select Spend Money, Receive Money, or Transfer Money. Then complete the fields.
To import transactions, instead of manually entering them select the Import a Statement option from the Manage Account drop down menu.
On the Reconcile tab of the Bank account, either match the transaction to a supplier bill/receipt, customer invoice, or enter the details associated with the transaction in the fields: Who (contact name), What (account), Why (description of the transaction), Tax Rate (GST coding).
Windcave Undeposited funds
- For windcave payments made in NetSuite before your conversion date but the actual funds are received in your bank account after your conversion date, these are typically added to the Undeposited funds - lightspeed account as part of the conversion balance.. These can be coded to the Undeposited Funds - lightspeed.
- If the windcave payments were made between conversion date and your Go-live date these need to be matched against the specific transactions.
- When windcave payments are made after your go-live date & via lightspeed, vital or xero, the invoice is marked as 'paid' and the payment transaction goes into the related undeposited funds account. You will need to code these to the related undeposited funds account. Click here for guide on how to identify which deposits should be coded to which account
When all of the bank transactions are reconciled for a period, check that the Xero bank account balance agrees with the online Bank account balance, select Reconciliation Report.
On the Reconciliation Report page, select the date range, update the report and compare the Xero and Statement balances with the online bank account balance.
If the Xero and Statement balances do not match:
Change the report to “Bank statement” and ensure the list of transactions for the period are the same as the transactions in online banking. If transactions are missing manually add them using the process mentioned above.
If all of the bank transactions are included, check the Statement Exceptions report reviewing the transactions and “reason” they are listed. Determine whether the transaction should be excluded or included.
Restore or delete bank transactions
To “restore” or “delete” a bank transaction, go to the Bank Account - bank statement tab. Find the transaction, select the box on the transaction line and click on “Restore” or “Delete”. The restore or delete option will only show after a transaction box is checked.
