Accounting Instructions for Manual Entry into Xero

Accounting Instructions for Manual Entry into Xero

The following accounting process in Xero are for Schools that are not using Kindo - Xero Rapid Integration. 

Prior to launching Kindo Payables you need to have the following general ledger codes set up in your accounting system:
  1. Kindo Clearing Account
  2. Kindo fees (GST inclusive)
Suggested accounting process if your system is XERO

Set up a contact for “the Growth Collective Limited” and then each time you receive the weekly invoice and sales reports from us, process as outlined below:

1.      Select Business tab.
 
2.      Select Invoices and then New invoice,  OR use COPY invoice from last week’s Kindo Invoice and overwrite with new values.
 
The other option is to set up a recurring DRAFT invoice on a weekly date as a Kindo template - then enter the values relevant to the current week.

 3.      Populate fields on invoice as follows (Invoice example on last page):

TO:
The Growth Collective Limited contact
DATE:    
Per our invoice 19/01/2023
INVOICE NUMBER:
Per our invoice 12345
GST INCLUSIVE:
Select this option


ITEMS and DESCRIPTION:
GL Ledger Coding
 
TIP: Ask your accountant to set up short codes for items which will then pre-populate the full description field and save you time entering invoice details.
e.g. Input ITEM “NY2” may be set up to return a full description of “Netball Year 2”
 a. Revenue CREDITS: enter as positive values line by line as per your weekly Summary Report. (These will total $3,390.00 per our example)
     

You need to make sure you have utilised the GL code field to notate ledger codes, when creating your items.
Each line to have GST tax rate as appropriate: 15% GST on Income or No GST for Donations.
 
b. Expense DEBITS: enter as negative values.

i.                 Any refunds – line by line into various revenue ledger codes (see separate refunds report for detail) (No GST code) totalling -$310.00

     

ii.                 POS payments TOTAL for the week to the Kindo Clearing Account (No GST code) of -$300.00
 
iii.                GST Inclusive Kindo Fee -$115.00 to a fee expense account with a GST 15% on expense code. The system will automatically code the GST component of $15.00.

RECOMMENDATION - Attach the relevant KINDO invoice and weekly reports to your invoice within XERO, so that the backup is readily available when looking up historical data within XERO.
The net amount of the XERO invoice should now match the amount $2,665.00 received by the school and will automatically pop up in your XERO Bank reconciliation process.

       

Xero Rapid Integration is also available for any schools that use Xero as their financial system. It makes your reconciliation process even more efficient, by automatically creating the draft invoice for you. All you have to do is check the draft invoice and approve.  You can view the Xero integration information here.

If you have any other queries or are unsure about anything, please contact accounts@tgcl.co.nz.

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