Export to Xero - Where does the data go in Xero

Migration Manager's export to Xero functionality pushes data from the Migration Manager Accounts system to Xero. The data pushed only relates to transactions which affect the Office Account - this is because transactions that affect the Client Bank account don’t affect the BAS, profit and loss, balance sheet, etc, so there is no need to have them in Xero. The Export to Xero does not create Invoices or Receipts in Xero, rather process exports the transactions into Xero as either

  • Manual Journal entries (if they don’t affect a bank account)
  • Receive Money entries (for money going into a bank account)
  • Spend Money entries (for money going out of a bank account)

1. Chart of Accounts

In the set up instructions for Exporting to Xero (see Set up Export to Xero), users are instructed to set up the following accounts in their Xero chart of accounts before they export anything from Migration Manager to Xero. These account numbers are then recorded in MM so that the system knows where to export the data to.

Assets

1-1000  MM Undeposited Funds

1-1001  MM Debtors Adjustment

1-1002  MM Debtors

1-1110  Office Bank Account

Revenue

2-1000  MM Client Fees

2-1001  MM Cost Recoveries (used when money is receipted against a Cost line on an invoice. In MM, a cost is an indirect expense incurred on behalf of a client, eg photocopying and facsimile costs)

2-1002  MM Payments Received (used when money is receipted against a Disbursement line on an invoice. In MM, a disbursement is a direct expense incurred on behalf of a client, eg a payment made to the dept of Immigration for a visa application)

2-1003  MM Client Credits

Expenses

3-1000  MM Office Payments (used to record disbursements)

3-1001  MM Discounts Given

3-1002  MM Debtor Write Offs

3-1003  MM Payment Write Offs

2. Transactions

The following is a list of common accounts transaction types and how they are exported to Xero. Note that these transactions only relate to the Office Account as the Client/Trust Accounting information is not exported to Xero.

3. Fees, Costs and Disbursements

3.1. New Fee

This transaction is not recorded in Xero.

3.2. New Cost

This transaction is not recorded in Xero.

3.3. New Disbursement

Cash Basis
 Accrual Basis
  • Create a Spend Money transaction
  • Debit the amount to the MM Office Payment (expense) GL account 
  • Credit the amount to the MM Bank Account (asset) GL account
  • If the disbursement includes multiple lines, the export will include a single credit line for the entire amount and one debit line for each disbursement line, because the disbursement lines may have different tax codes.
  • Create a Spend Money transaction
  • Debit the amount to the MM Office Payment (expense) GL account 
  • Credit the amount to the MM Bank Account (asset) GL account
  • If the disbursement includes multiple lines, the export will include a single credit line for the entire amount and one debit line for each disbursement line, because the disbursement lines may have different tax codes.

3.4. Reverse Disbursement

Cash Basis
 Accrual Basis
  • Create a Receive Money transaction
  • credit the amount to the MM Office Payment (expense) GL Account
  • debit the amount to the MM Office Bank Account (asset) GL Account
  • Create a Receive Money transaction
  • credit the amount to the MM Office Payment (expense) GL Account
  • debit the amount to the MM Office Bank Account (asset) GL Account

3.5. Write Off Disbursement

A disbursement can only be written off if it hasn’t yet been invoiced. Writing off the disbursement means that it won’t be invoiced. If the Disbursement has been invoiced the invoice first needs to be reversed.

Cash Basis Accrual Basis
  • Create a manual journal transaction
  • Credit the amount to the MM Office Payment (expense) GL Account.
  • Debit the amount to the MM Payment Write Offs (expense) GL Account
  • Create a manual journal transaction
  • Credit the amount to the MM Office Payment (expense) GL Account.
  • Debit the amount to the MM Payment Write Offs (expense) GL Account

3.6. Reverse Disbursement Write-Off

Cash Basis Accrual Basis
  • Create a manual journal transaction
  • debit the ex tax amount to the MM Office Payment (expense) GL Account.
  • credit the ex tax amount to the MM Payment Write Offs (expense) GL Account.
  • Create a manual journal transaction
  • debit the ex tax amount to the MM Office Payment (expense) GL Account.
  • credit the ex tax amount to the MM Payment Write Offs (expense) GL Account.
4. Invoices

4.1. New Invoice (Draft)

Draft Invoices data is not exported to Xero.

4.2. New Invoice (Finalised)

Cash Basis
 Accrual Basis
  • Under a Cash Basis, Invoice data is not exported to Xero until payments are received.
  • Create a Manual Journal Transaction
  • Debit the total amount to the MM Debtors (asset) GL Account.
  • For each invoice line, 
    • for Fees - credit the amount to the MM Client Fees GL Account.
    • for Costs - credit the amount to the  MM Cost Recoveries GL Account.
    • for Disbursements - credit the MM Payments Received (revenue) GL Account.

4.3. Reverse Invoice

Cash Basis
 Accrual Basis
  • Under a Cash Basis, Invoice data is not exported to Xero until payments are received.
  • Create a Manual Journal Transaction
  • Credit the total amount to the MM Debtors (asset) GL Account.
  • For each invoice line, 
    • for Fees - debit the amount to the MM Client Fees GL Account.
    • for Costs - debit the amount to the  MM Cost Recoveries GL Account.
    • for Disbursements - debit the MM Payments Received (revenue) GL Account.

4.4. Adjust Invoice (Discounting)

Cash Basis Accrual Basis

  • Create a manual journal transaction
  • Credit MM Debtors the full adjustment amount
  • Debit MM Discounts Given with the relevant amounts and tax codes (there may be several debit lines with different tax codes) (note if some invoice lines were increased and others were decreased, the increases will be credited to MM Discounts Given and the decreases will be debited to MM Discounts Given)

4.5. Adjust Invoice (Increasing)

Cash Basis Accrual Basis

  • Create a manual journal transaction
  • Debit MM Debtors the full adjustment amount
  • Credit MM Discounts Given with the relevant amounts and tax codes (there may be several credit lines with different tax codes) (note if some invoice lines were increased and others were decreased, the increases will be credited to MM Discounts Given and the decreases will be debited to MM Discounts Given)

4.6. Adjust Invoice (Write Off)

Cash Basis Accrual Basis

  • Create a manual journal transaction
  • Credit MM Debtors the write off amount
  • Debit MM Discounts Given GL Account.

4.7. Reverse Invoice Adjustment

Reversing an Invoice Adjustment has the exact opposite effect as performing the original adjustment.

5. Office Receipts & Credits

5.1. New Office Receipt

Cash Basis Accrual Basis
  • Create a manual journal transaction (if the payment type requires banking) OR a Receive Money transaction (if the payment type is one that goes directly into the bank account)
  • Credit the amount to the MM Client Fees, MM Cost Recoveries, MM Payments Received and/or MM Client Credits (income) general ledger accounts as required depending on the item types in the invoices that were paid
  • Debit the amount to the general ledger account for the relevant bank account OR MM Undeposited Funds (asset) account (depending on whether the payment type is one that needs banking or not)
  • Create a manual journal transaction (if the payment type requires banking) OR a Receive Money transaction (if the payment type is one that goes directly into the bank account)
  • Debit the amount to the general ledger account for the relevant bank account OR MM Undeposited Funds (asset) account (depending on whether the payment type is one that needs banking or not)
  • Credit the amount to MM Debtors (asset) 

5.2. Reverse Receipt

Cash Basis Accrual Basis
  • Create a manual journal transaction (if the payment type requires banking) OR a spend money transaction (if the payment type is one that goes directly into the bank account)
  • Debit the amount to the MM Client Fees, MM Cost Recoveries, MM Payments Received and/or MM Client Credits (income) general ledger accounts as required depending on the item types in the invoices that were paid.
  • Credit the amount to the general ledger account for the relevant bank account OR MM Undeposited Funds (asset) account (depending on whether the payment type is one that needs banking or not)
  • Create a manual journal transaction (if the payment type requires banking) OR a spend money transaction (if the payment type is one that goes directly into the bank account)
  • Credit the amount to the general ledger account for the relevant bank account OR MM Undeposited Funds (asset) account (depending on whether the payment type is one that needs banking or not).
  • Debit the amount to MM Debtors (asset) GL Account.

5.3. Apply Credit to Invoices

Cash Basis Accrual Basis
  • Create a manual journal transaction
  • Debit the amount to the Client Credits (income) GL Account.
  • credit the ex tax amount to the Client Fees, Cost Recoveries and/or Payments Received (income) general ledger accounts as required depending on the item types in the invoices that were paid.

 No Affect

5.4. Reverse Applied Credit

Cash Basis Accrual Basis
  • Create a manual journal transaction
  • Credit the amount to the Client Credits (income) general ledger account
  • Debit the ex tax amount to the Client Fees, Cost Recoveries and/or Payments Received (income) general ledger accounts as required depending on the item types in the invoices that were paid.

 No Effect

5.5. New Credit Refund

Cash Basis Accrual Basis
  • Create a Spend Money transaction
  • Debit the amount to the MM Client Credits (income) GL Account.
  • Credit the amount to the MM Bank Account (asset) GL Account.
  • Create a Spend Money transaction
  • Debit the amount to the MM Debtors (asset) GL Account.
  • Credit the amount to the MM Bank Account (asset) GL Account.

5.6. Reverse Credit Refund

Cash Basis Accrual Basis
  • Create a Receive Money transaction
  • Credit the amount to the MM Client Credits (income) GL Account.
  • Debit the amount to the MM Bank Account (asset) GL Account.
  • Create a Receive Money transaction
  • Credit the amount to the MM Debtors (asset) GL Account.
  • Debit the amount to the MM Bank Account (asset) GL Account.
6. Client/Trust to/from Office Transfers

6.1. New Client to Office Transfer

This is the same as a New Office Receipt

6.2. Reverse Client to Office Transfer

This is the same as reversing an Office Receipt

6.3. New Office to Client Transfer

Cash Basis Accrual Basis
  • Create a Spend Money transaction
  • Debit the amount to the MM Client Credits (income) GL Account.
  • Credit the amount to the MM Bank Account (asset) GL Account.
  • Create a Spend Money transaction
  • Debit the amount to the MM Debtors (asset) GL Account.
  • Credit the amount to the MM Bank Account (asset) GL Account.

6.4. Reverse Office to Client Transfer

Cash Basis Accrual Basis
  • Create a Receive Money transaction
  • Credit the amount to the MM Client Credits (income) GL Account.
  • Debit the amount to the MM Bank Account (asset) GL Account.
  • Create a Receive Money transaction
  • Credit the amount to the MM Debtors (asset) GL Account.
  • Debit the amount to the MM Bank Account (asset) GL Account.
7. Bank Deposits

7.1. New Bank Deposit

Cash Basis Accrual Basis
  • Create a Receive Money transaction
  • Credit the amount to MM Undeposited Funds (1-1000) the full amount.
  • Debit the amount to the selected bank account
  • Create a Receive Money transaction
  • Credit the amount to MM Undeposited Funds (1-1000) the full amount.
  • Debit the amount to the selected bank account

7.2. Reverse Bank Deposit

Cash Basis Accrual Basis
  • Create a Spend Money transaction
  • Debit the amount to MM Undeposited Funds (1-1000) the full amount
  • Credit the amount to the  selected bank account
  • Create a Spend Money transaction
  • Debit the amount to MM Undeposited Funds (1-1000) the full amount
  • Credit the amount to the  selected bank account