Create Invoices That Sync With Xero

Build invoices in either Maxio Platform or Xero so they sync correctly between the two systems, and understand the differences between the two workflows.

Creating Invoices in Maxio Platform

While you can create Invoices in either system and sync them to the other, there are also significant differences in the workflow required to build out complete subscription and revenue records. The most efficient way to create complete financial records is to create them in Maxio Platform and sync the resulting Invoices to Xero.

It's best to begin by reviewing how you create an Invoice in Xero, as the process is very different in Maxio Platform. In Xero, you add a single Invoice to a Customer on one screen where you define the Invoice properties such as the date and billing address, AND you select one or more Items/Products, add a description, quantity, and an amount for each.

In Maxio Platform, the process is very different. It is different because you are not simply creating an Invoice, you are building a complete financial record that includes subscription, revenue, and invoicing information.

The process in Maxio Platform is as follows:

After creating or locating the appropriate Customer and Contract, you add one or more Transactions. For each Transaction, you create a revenue schedule and an invoicing schedule. The invoicing schedule is comprised of one or more Invoice Line Items. With regard to invoices, the differences in the processes are significant. You don't actually add an Invoice in Maxio Platform. You add Invoice Line Items. The actual Invoice or Invoices are then built for you from the schedule of Invoice Line Items you define when creating the Transaction(s).

Functions such as Processing Sales Orders, Add Transactions, and the family of Renewal functions all add Transactions and thus generate Invoice Line Items as well. Those Invoice Line Items are combined into Invoices and then synced into Xero.

Creating an Invoice Directly in Maxio Platform

Using the Invoices menu from the Customer or Contract screens, you can add an Invoice (with Invoice Line Items) directly into a Contract. Adding an Invoice in this fashion can result in an out-of-balance condition where the Transaction Amounts, Revenues, and Invoice Line Item totals are not the same.

When adding an Invoice directly into a Contract, you can associate Invoice Line Items with Transactions in the Contract. If you do not, you can use the same Create Transaction menu option for each line item to create necessary Transactions and Revenues. The Generate Transactions from Unassociated Invoice Line Items function does not work for Invoices created in Maxio Platform.

Creating Invoices in Xero

With the limitations imposed by the Item settings and overall account settings, Invoice and Invoice Line Items created in Xero will sync to Maxio Platform. Once in Maxio Platform, Invoices are added to a Contract. If a Contract doesn't exist, one is created automatically during the sync process. If multiple Contracts exist, the Invoices are placed in one of the Contracts. Since you cannot control into which Contract the Invoices are placed if a Customer has multiple Contracts, it is advised not to create Invoices in Xero for Customers with multiple Contracts.

Since revenues are associated with Transactions and not Invoice Line Items, you must create Transactions and Revenues for the Invoice data or your Contract and Customer will be out-of-balance. The following options exist for the creation of Transactions and Revenues:

• Create Transaction from an Invoice Line Item: Create a single Transaction from a single Invoice Line Item. Simply navigate to an Invoice Line Item and then select the Create Transaction option from the menu.
• Create Transactions: Create a single Transaction for one or more Invoice Line Items. For example, use Create Transactions to create an annual subscription for 12 monthly invoices.
• Generate Transactions: Using Item level settings, this batch operation can Generate Transactions (and Revenues) for a large number of Invoice Line Items. This is typically used during an initial implementation when you have synced historical invoice data from Xero. It can also be used for non-recurring Invoice Line Items the Invoices are created in Xero.
• Generate Transactions with Autogenerate Transactions Enabled: With the Autogenerate Transactions setting on, Transactions and Revenues will be created automatically using the Generate Transactions function during the sync process.

Related information

For the underlying invoice sync rules and limitations these workflows depend on, see Sync Invoices Between Maxio and Xero.