Xero Rapid Integration - How to process a negative invoice
Access: Payable Administrators
Our current Kindo Xero Rapid Integration functionality does not enable a negative invoice to be created automatically for you – although this enhancement is on our development roadmap. When you select “create an invoice” the Kindo integration will create a DRAFT negative invoice – but XERO (correctly so) will not allow you to save and approve that invoice - as it has a value less than 0.
The best way for you to process a negative invoice is to manually create a Credit note within XERO.
To do this in XERO:
1. Select “Business”
2. “Invoices”
3. “New credit note”
4. Enter our Invoice number in the reference field or you may prefer to amend the automatically
generated Credit note number with CN-XXXXXX where XXXXXX is our Invoice number reference.
5. Select contact of “The Growth Collective/Kindo” (whatever name you have in your contact list)
6. Ensure the top right-hand field for Amounts is set to GST “Tax inclusive”.
7. Enter the values from your weekly reports as follows –
i) Total value of refunds from Refunds report– process as a POSITIVE value to your Income account
(this will create a debit to reverse previously recognised revenue credits) - $800.00 in example
ii) Total value of any payments from payment Summary report– process as NEGATIVE values to
various Revenue accounts - $450.00 in example
iii) Total Kindo Fees GST inclusive from the Kindo Invoice – process as a POSITIVE value to the Kindo
fees expense account - $27.14 in example
8. The net value will be a positive credit note - which is the same as a negative invoice from an accounting
perspective - $377.14 in example. This amount is payable from the school to Kindo.
9. TIP: You may wish to open a second window in XERO and use Copy and paste function to populate your
Credit note fields from the draft invoice that has been created. Alternatively print out the Draft invoice
and use that as a reference for accounts and sub totals – then simply reverse the signs – i.e. All positive
values from the invoice should be entered as negative values on the Credit note.
(this will create a debit to reverse previously recognised revenue credits) - $800.00 in example
ii) Total value of any payments from payment Summary report– process as NEGATIVE values to
various Revenue accounts - $450.00 in example
iii) Total Kindo Fees GST inclusive from the Kindo Invoice – process as a POSITIVE value to the Kindo
fees expense account - $27.14 in example
8. The net value will be a positive credit note - which is the same as a negative invoice from an accounting
perspective - $377.14 in example. This amount is payable from the school to Kindo.
9. TIP: You may wish to open a second window in XERO and use Copy and paste function to populate your
Credit note fields from the draft invoice that has been created. Alternatively print out the Draft invoice
and use that as a reference for accounts and sub totals – then simply reverse the signs – i.e. All positive
values from the invoice should be entered as negative values on the Credit note.
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