Using Xero tracking categories and codes

Using Xero tracking categories and codes

Tracking categories and codes in Xero allow schools to report on income in more detail than General Ledger codes (GL codes) alone. When used with Kindo, tracking can be applied to payment items so income flows into Xero already coded correctly for reporting.

You'll learn:

  • What tracking categories and codes are

  • How schools commonly use tracking in Xero

  • How tracking works with Kindo

  • How to set up and apply tracking categories and codes in Kindo


Understanding tracking

What are tracking categories and codes?

Tracking categories and codes are a feature in Xero that let you tag transactions for reporting purposes beyond your standard chart of accounts. They allow you to group and report on income in different ways, such as by department, year level, or activity type.


How schools use tracking

Schools use tracking in different ways, depending on their accounting setup and reporting needs. Common approaches include:

By department

  • Track income across areas such as Music, Sports, Science, or Library

  • Report on revenue by department

By year level

  • Separate income for Year 7, Year 8, Year 9, etc.

  • Report on collections by year group

By activity type

  • Distinguish between curriculum, co-curricular, and fundraising income

  • Track camps, trips, and special events separately

Your accountant will usually advise which approach (or combination) is right for your school.


Tracking categories vs GL codes

GL codes and tracking serve different purposes in Xero, but they work together.

  1. GL codes describe what a transaction is for (for example, sports fees, stationery sales, or camp income).
  1. Tracking adds additional context, such as the department, year level, or activity the income relates to.

How your school uses these depends on how your accountant has structured your chart of accounts.

Common accounting setups


Your accountant may have set up your Xero chart of accounts in one of the following ways:

Detailed GL codes only
Each activity has its own GL code (for example, Year 8 Sports Fees), with no tracking categories used.

Simple GL codes with tracking categories
Broad GL codes (for example, Student Activity Fees) are used, with tracking categories applied to show department, year level, or activity.

A mix of both
GL codes are used for one reporting purpose, with tracking categories used for another.

Kindo supports all of these approaches and works with any structure your accountant has recommended.


How tracking works with Kindo 

Kindo collects payments from families for things like sports fees, camps, stationery, and donations. When tracking categories are used, Kindo passes those tracking details through to Xero so income is already coded correctly when it arrives.

Here’s how the process works:

1. Your existing Xero setup
Your accountant sets up tracking categories and codes in Xero (if your school uses them)

2. Add tracking to Kindo 
You add the same tracking categories and codes to Kindo so they exactly match what exists in Xero. This makes them available to select when setting up items or payment requests.

3. Assign tracking to payment items
Tracking codes are entered directly when setting up shop items or payment requests in Kindo.


Set up tracking in Kindo

Before you start: check your Xero setup

Before setting up tracking in Kindo, confirm how tracking categories and codes are set up in Xero. Kindo does not create or change tracking in Xero, so it’s important that the information you use in Kindo matches Xero exactly.

Find your tracking categories in Xero

In Xero:

1. Go to Settings → Tracking categories
2. Locate:

The tracking category names, and
The tracking codes (options) listed under each category

This is where you can copy and paste the exact names you'll need to use in Kindo.




What you'll need

  • The tracking category name(s) used in Xero (for example, Faculty or Activities)

  • The tracking codes under each category (for example, Admin, Sports, Art)

  • Confirmation from your accountant about which tracking codes should be used for each item or payment request


AlertAlert: 
Tracking category and code names in Kindo must match Xero exactly, including spelling and spacing.
We recommend copying and pasting names directly from Xero to avoid small mismatches.


Tracking categories and codes must be added to Kindo before they can be selected when setting up shop items or payment requests.

If you have a large number of tracking categories, codes, or existing items, the Kindo support team may be able help load and apply these in bulk. This is often much faster than adding them one by one.

If you prefer to set this up yourself, or if you only have a small number to add, follow the steps below.


Add a tracking category

On the Shop Site

1. Go to Admin → Accounting settings 
2. Scroll to Tracking categories
3. Select + Add a tracking category
4. Paste the tracking category name exactly as it appears in Xero
5. Save





Add tracking codes

1. In Tracking categories, select the edit (pencil) icon next to the category
2. Select + Add a tracking code
3. Paste the tracking code name exactly as it appears in your accounting system
4. Repeat until all required codes are added

From this screen, you can also:
  1. Rename the tracking category
  2. Rename tracking codes
  3. Delete tracking codes





Apply tracking to items or payment requests

Tracking is applied at item or payment request level in Kindo. How you enter tracking depends on whether your school uses Kindo payables or Kindo Shop - only.


Kindo Payables Schools

Once tracking categories and codes have been added to Kindo, tracking is applied in the Payable catalogue.

1. Go to the Payable catalogue
2. Create a new payable item, or select an existing item to edit
3. In the Accounting section, complete the following fields: 
  1. GL code - select the appropriate general ledger code
  2. Category (e.g. Activities) - select the relevant tracking category from the dropdown
  3. Code (e.g. Camps)- select the relevant tracking code from the dropdown
4. Save and publish the payment request.

Tracking is applied per payment request. All payments for that request will use the same GL code and tracking information.


Kindo Shop-only schools

Once tracking categories and codes have been set up, tracking is applied to shop items in the Partner Site.

1. Go to the Item editor
2. Create a new item, or edit an existing item
3. Complete the following fields:

  1. GL code - enter the appropriate general ledger code
  2. Category (e.g. Activities)  select the relevant tracking category
  3. Code (e.g. Camps) - select the relevant tracking code

4. Save the item

Tracking is applied at item level. All payments for that item use the same GL code and tracking information.




View tracking in the Payable catalogue (Payable Schools)

Once tracking has been applied, it is visible in the Payable catalogue.

  1. Tracking information is displayed as columns in the catalogue, including GL code, and your Categories (e.g. Activities and Faculty).
  2. Each payment request shows the tracking code applied to it
This view allows you to quickly confirm that tracking has been set up correctly across your payable items. 




Managing tracking

Making changes later to tracking codes

You can update tracking information if things change.

Rename tracking categories or codes

Tracking category and code names can be updated in Settings → Accounting settings → Tracking categories.
If names are changed in Xero, make sure the same updates are made in Kindo so they continue to match.

Change tracking on an item or payment request
Edit the item or payment request, update the tracking information, then save and publish.

Remove a tracking code 
Tracking codes can be deleted from the tracking category settings.

Idea
Idea: 
If a tracking code has been used previously, consider renaming it instead of deleting it.
This helps preserve historical reporting and avoids breaking the link to existing payment requests.


Key points to remember

  1. Tracking categories and codes in Kindo must match Xero exactly, including spelling and spacing.
  2. Tracking is optional. If your school uses GL codes only, your current setup continues to work as it does now.
  3. Tracking is set when an item or payment request is created or edited. All payments for that item or request use the same tracking information.



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