How to Set Up Xero Integration with Hitpay?

Xero is easy-to-use online accounting software that's designed specifically for small businesses. For more information, please visit Xero.

What functions does the HitPay-Xero integration perform?

1. Automatically creates a HitPay clearing bank account in your Xero account and creates spend and receive transactions for every Xero invoice payment using HitPay Payment gateway and creates a lumpsum spend and receive transaction for non-Xero invoice payments using HitPay Payment Gateway.
2. Automatically creates a bank transfer from the HitPay clearing account to the nominated bank account to automate reconciliation.
3. Optional: Automatically creates a Sales invoice for Total HitPay Sales excluding Xero Invoice Payments and Total HitPay Fees
4. Accept payments using HitPay supported payment methods in Xero Online Invoicing

How does the HitPay - Xero feed work?

HitPay lets you sync HitPay sales and payments data daily into your Xero account. The integration is easy and simple to set up, and once you've connected your Xero account, HitPay will automatically import your data into the bookkeeping accounts of your choice.

Note as well that Xero token has a validity of typically 60 days after connecting HitPay with Xero. When the token expires, you will have to reconnect HitPay with Xero by following the same steps below.

Steps:

1. Create an account in Xero to record HitPay Sales and ensure you have selected Enable payments to this account as shown below (You may do this in your Xero account under Accounting > Chart of Accounts > Add Account)

2. Create an account in Xero to record HitPay Fees  and ensure you have selected Enable payments to this account as shown above (You may do this in your Xero account under Accounting > Chart of Accounts > Add Account )

3. Ensure you have a bank account setup in Xero

4. Log in to https://dashboard.hit-pay.com and click on Settings > Connections > click View Details for Xero:

5. Click on Connect to Xero and enter your Xero credentials to connect your Xero account to HitPay:

6.  Upon successful connection, you will view the below success dialogue in HitPay Dashboard, which displays your Xero Organisation.

Please note that by connecting your Xero account to HitPay, a HitPay clearing bank account is automatically created. This clearing bank account allows for automatic reconciliation between HitPay sales and your real bank account credits.

Refer to Point 1 and 2 under What functions does the HitPay-Xero integration perform?

7. Complete setup by selecting the appropriate value for each of the below fields

A. Select Sync Start Date

Select the date from which you would like to start syncing data between HitPay and Xero

B. Xero PayNow button text

Enter the payment button text that you would like customers to view upon clicking the Xero Invoice link (Do note not to enter any special characters)

Below is an example of the Xero invoice page and the payment button text

C. Select Xero Branding Theme

Select Standard from the drop down options

D. Select Xero Bank Account for Payout

Select your bank account set up in Xero. This is your 'real' bank account which you have linked in HitPay for PayNow payment acceptance and in Stripe for other payment method acceptance. 

The bank account selected allows for automatic daily reconciliation between HitPay bank clearing account and your 'real' bank account.

The highlighted fields below show an example of a daily bank transfer between HitPay clearing account and your 'real' bank account. The bank transfer amount is equal to total HitPay sales - Total HitPay fees

E. Select Xero Account For Sales

HitPay will automatically create sales invoices tagged to the Xero account that you select from the dropdown selection.

Please take note of step 1 mentioned earlier as the dropdown will only show accounts from Xero that have payments enabled.

The highlighted invoice is an example of a sales invoice automatically created by HitPay

F. Select Xero Account For Fee

HitPay will automatically create fee invoices tagged to the Xero fee account that you select from the dropdown selection.

Please take note of step 2 mentioned earlier as the dropdown will only show accounts from Xero that have payments enabled.

Below is an example of fee invoices created by HitPay in your Xero account

G. Automatically Create Invoices for Total HitPay Sales and Fees (Excluding Xero Invoice Payments)

Optional: Automatically creates a Sales invoice for Total HitPay Sales and Total HitPay Fees. If you enable this setting a sales invoice is created on T+1 for total hitpay sales and total hitpay fees. Please note that the total invoice amount will exclude sales involving xero invoice payments.

H. Select Sales Channel Data for Data Import 

Select the HitPay sales channel that you would like to import into Xero

I. How do you want to import data?

You may choose to import data as a lumpsum sales amount or by individual transaction

8. Click on Save (Shown below)

9. Activate HitPay Payment Gateway in Xero Invoicing

Navigate to Payment Gateway > Integrations in the HitPay Dashboard, click on Add Integration, select Xero and select the payment methods that you would like to activate in Xero Online Invoicing.

Upon clicking on Save, the HitPay Payment Gateway will be automatically enabled for all invoices created in Xero.

10. Go Live!