Accounting Package Setup > Xero Setup

Wise-Sync has been designed to capture as much of the information from ConnectWise and transact to Xero in the most detailed possible way. With a single aim of improving financial visibility, as well as ensuring that data is transacted with only valid information. The following prerequisite requirements ensure that Wise-Sync can get the information needed to create records in Xero and transactions accordingly.

Here's what you need to do:

  1. Account Numbers in your Chart of Accounts

    Ensure that all Chart of Accounts has valid account numbers.

  2. Setup Tax Codes for Mapping of ConnectWise Tax Groups

    Ensuring that the Tax Codes in Xero match those in ConnectWise

What do I do?

Step 1 > Chart of Accounts Review: Account Numbers

Note:

This next section is only required if you wish to review your Chart of Accounts and the "Account Numbers" and ranges in your Chart of Accounts in Xero.

Realigning your Account numbers to your chart of accounts will not affect the functions of reporting, it can in some circumstance help in the financial entry of transactions, by allowing users to type the account code, rather than the text (both will work).

Common Account Number Ranges

In principal ranges can be defined for any purpose, it is however recommended that the accounts are ranged to help in the grouping and reporting. The following represents a common table of accounting number ranges. The ordinal ranges can be arranged with or without the dash, in hundreds (100) or thousands (1000), it is really up to you and your accountant to work out the best CoA that fits the needs of the business.

Account Range (Commencing Ordinal)Financial Reporting Purpose
1-0000Assets
2-0000Liabilities
3-0000Equity
4-0000Income / Revenue
5-0000Cost of Goods Sold
6-0000Expenses
7-0000Special Purpose
8-0000Special Purpose
9-0000System Accounts

Principles in Revenue and COGS Mapping

Good practice is to align your direct costs of sales to the direct revenues which are reported. This can help to identify your profitability of specific services or groups of services or products that you sell.

Cost of Goods Sold (COGS or COS) should align to your revneue in numbering, so that it can make coding of transactions and mapping Revenue and COGS in ConnectWise GL Accounts setup more intuitive.

Revenue AccountCost of Goods Sold
PR1.4-2010C1.5-2010
PR1.4-2011C1.5-2011
PR1.4-2012C1.5-2012
PR1.4-2013C1.5-2013
PR1.4-2014C1.5-2014
PR1.4-2110C1.5-2110
PR1.4-2111C1.5-2111
PR1.4-2112C1.5-2112

In the highlighted example, the Revenue Account (4-2010) COGS are correspondingly allocated into 5-2010The example also provides for the Wise-Sync SLI grouping, allowing simple entry of HTG Group Members Quarterly Figures.

Step 2 > Add Account Numbers to your Chart of Accounts 

Here's how to do it:

  1. From the Settings Menu, select Chart of Accounts.

    Note: If it is not visible in the menu, select "General Settings" and then "Chart of Accounts"

  2. Update your Chart of Accounts to reflect the changes required.
Step 3 > Setup Tax Groups 
Wise-Sync will apply Tax Rates Xero based on the Tax Group name in ConnectWise. If there is a mismatch between the rates defined in each system, and error will be returned if you try to sync a record that has a mismatched tax code.

Note:

Tax Codes will not be created in Xero if they are missing.

Depending on the region of your Xero company, you may have slightly different options that are specific to your regional location. See the 'Tax setup per region' section below for more information. 
Step 4 > You're Done! A Checklist Before You Start Syncing
Things you need to have completed before moving to the ConnectWise setup steps.

Xero Online Setup

  • Have Account Numbers for each of your accounts in the Chart of Accounts.
  • Added numbers to all of your Chart of Accounts.
  • Setup at least one Tax Group in Xero
  • Setup Matching Payment Terms between ConnectWise and Xero.

Once you have the above checked off, you are now ready to start the ConnectWise Setup Steps.

Tax setup per region

Setup AU Tax

Wise-Sync will map ConnectWise tax based on the selection made in the Tax Codes setup in Wise-Sync. The recommended setting to ensure taxes are applied for each invoice is GST on Income. This setting will match the ConnectWise Tax Code Name on the Invoice to the Tax Rate Name in Xero.

Xero Tax Rates Setup

Here's how to do it:

  1. Go to Settings > General Settings
  2. Click Tax Rates
  3. Add/Edit the Tax Rates you require to match up with your ConnectWise setup
  4. Click New Tax Rate at the top of the screen
  5. Enter the TaxCodeXRef based on your preferred selection - example GST on Income
  6. Select the Tax Type
  7. Enter Tax Components - ie: GST
  8. In the Rate (Percentage) enter the Percentage of the tax component as a whole number -ie: 10%

Note: It is important to set the Xero Tax Rate Display Name to Match against ConnectWise Tax Code Description

ConnectWise Tax Rates Setup

  1. Go to Set Up Tables > Invoicing > Tax Codes Screen > Add Tax Code
  2. In the Setup Screen, Enter the Same Name as defined in the ConnectWise Tax Code Description
  3. Enter the Rate (as whole units I.e. 10% = 10)

Note:

ConnectWise records the fractional value of the percentage (0.01 = 1%)

Setup NZ Tax
GST is tax on goods and services in New Zealand is usually charged at 15%.
Setup UK Tax
Coming Soon
Setup Sales Tax (US Region)

Xero supports three different tax structures

  • Static: Where a single rate is applied to the invoice and payable to a single tax agency
  • ConnectWise Group: Where a (combined) set of tax rates payable to different agencies is set for each invoice.
  • ConnectWise Tax Line: Where a multiple level tax calculation can be set for each line on an invoice. Each level of the ConnectWise Tax Group (level) is mapped to a specific Xero tax rate.

Wise-Sync will map ConnectWise tax based on the selection made in the Tax Code setup in Wise-Sync. The recommended setting to ensure taxes are applied for each invoice should be set to "Tax Group", as this will match the ConnectWise Tax Code Name on the Invoice to the Tax Rate Name in Xero.

To access the Tax Rates page in Xero, click Settings > General Settings > Tax Rates

Step 1: [Check] Add Tax Rates for each of your required tax rates as per the ConnectWise setup

Xero will load with default Tax Rates. However tax rates applicable to your use and sales will be required to be added. You will be required to add each tax rates based on your preferred mapping level, Static, Group, Line.

Here's how to do it:

  1. Click on "New Tax Rate" button at the top of the form
  2. Enter the Tax Group | TaxCodeXRef based on your preferred selection below
  3. In the Component Setting, add the Tax Agency Name
  4. In the Rate (Percentage) enter the Percentage of the tax component as a whole number.
  5. Press Save

Step 2: Create a Single Tax Rate

Here's how to do it:

  1. Press the "New Tax Rate" button to create a Single Tax Rate

    Note: If you already have Tax Rates setup in Xero, then you only need to check the names match between the systems.

  2. If you require a Multi-Component Tax Rate, press Add a Component

    Single: If you only need to pay a single Agency.

    Combined: If you need to pay multiple Agencies.

  3. Set the Xero Tax Rate Display Name to Match against ConnectWise Tax Code Description
P
Paul is the author of this solution article.

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