How to set up the Xero Integration (new)

Overview

Key features of the integration

• Export
  • Exporting of card expenses and reimbursements is supported.
  • Expense attachments (receipts) are transferred together with the expense data.
  • Split lines are supported.
• Categories sync (chart of accounts)
  •  Import and sync the chart of accounts from Xero with Categories in Pleo.
• Tags sync (tracking categories and customers)
  • Import and sync Xero tracking categories and Xero customers as Tags in Pleo.
• Vendors
  • Vendors from Xero are synced to Pleo.
• Reimbursements
  • Choose whether reimbursements are booked as Bills & Overpayments or Account Transactions in Xero.
• Multi-currency support
  • If you use multiple Pleo Wallet currencies, set up a bank account in Xero for each currency before connecting.
• Closed period handling
  • Optionally auto-post exports from closed accounting periods to the next open period (to reduce export errors).

Preparation

If you use multiple currencies, first create the relevant bank accounts in Xero for each currency. 

1. In Xero, access Bank accounts
2. Click Add Bank Account
3. Add without bank feed
4. Select relevant currency
5. Fill out the details
6. Click Add account
7. In Pleo, go to Settings 
8. Access Accounting 
9. Click Sync with Xero

Connection

1. In Pleo, navigate to Settings
2. Click Accounting
3. Search for Xero (new)
4. Select the integration 
5. Click Continue and Connect
6. Follow the instructions 
7. Click Save
8. Wait a few minutes so the chart of accounts, vendors, taxes and other accounting settings are synchronised
9. Click Reload to proceed to the next step

Configuration

After you connect, review and complete the settings in Pleo. The exact options you see depend on how you use Pleo and Xero.

Reimbursement 

If you use Reimbursements on Pleo, you need to choose how these are recorded in Xero. This ensures your out-of-pocket expenses are tracked accurately.

1. Select Reimbursement bookkeeping method

• Account Transactions
  Use this to book both expenses and reimbursements as regular transactions. This is a simpler setup, but it does not automatically link specific expenses to their specific reimbursement.
• Bills & Overpayment
  Use this to book out-of-pocket expenses as Bills and their corresponding reimbursements as Payments. This automatically links the two, making it easy to see which expenses have been paid back.

2. Set up your accounts

• Contra account for reimbursement
  Choose a BANK-type account in Xero where the currency matches your primary currency. This account tracks reimbursements made outside of Pleo.
• Account for Out-of-pocket expenses
  If you selected the Account Transactions method, you must choose a BANK-type account to represent out-of-pocket expenses. Each expense will be balanced between the expense category and this specific account.
• Book to individual employees
  Enable this advanced option to attach the employee as a Contact on the related expense in Xero. If an exact name match isn't found, Pleo will automatically create a new contact for you.

Vendor Tagging

Learn how to activate Vendor tagging in Pleo. 

Contra accounts

If this is your first time setting up the Xero integration, follow the steps below. 

1. In Pleo, go to Settings 
2. Click Accounting 
3. Access Contra Accounts 
4. Map a BANK account for each currency account

Tags and Tag groups

1. In Pleo, go to Settings 
2. Click Accounting 
3. Select SetUp
4. Navigate to Sync Tracking Categories 
5. Select the Tracking Categories from Xero which you want to synchronise with Tags in Pleo
6. Click Save settings
7. Tag groups and tags will be created in Pleo (Tags section)

Categories

If this is the first time you set up Xero integration, learn how to create your categories, and once created, you can follow these steps: 

1. In Pleo, go to Settings 
2. Click Accounting 
3. Access Categories 
4. For every category:
   • Select the account number
   • Add a Defaults Tax Code from the dropdown
5. Click Save Settings

Advanced settings

Depending on your setup, you may also need additional options.

1. In Pleo, go to Settings 
2. Click Accounting 
3. Select Set Up
4. Navigate to Advanced Export Options
   • Billable expenses: If you enable this option, Xero customers are imported as a tag group. When you export to Xero, expenses appear as billable items (if a customer tag is present).
     Note: If you’re upgrading and you previously synced Customers as a tag group, turn this option on.
   • Move to Open Period: If you export an expense from a closed accounting period, the integration can automatically post it to the next open period. This reduces the need to reopen closed periods or use manual workarounds.
   • Vendor tagging: When enabled, you can attach an Xero supplier to card expenses so you can track supplier spending in Xero.
5. Click Save settings

Export an expense

After setting up the integration, it's important to export an expense to see if the integration is configured correctly.