The Yoco & Xero integration is intended to help you manage your settlement process, however it does not support a per-transaction invoicing system.
This means we generate a single invoice in Xero for each of your settlement, i.e. your gross receipts less our fees.
For cash transactions, it’s a bit different. If you enable feeding cash transactions to Xero, we will create a single invoice for each day that you have 1 or more cash transactions and all of those transactions will be listed as separate line items.
The first step in integrating Yoco and Xero requires a Payments Account to be created and to specify the following accounts:
You can set up new accounts whilst integrating the two systems. See this video for a step by step guide of this process:
When you transact using Yoco, your customer has the option of specifying a tip as part of that payment. So for example, if their bill was for R80 and they specify a R20 tip, you will charge the customer R100. You then receives that R100 less our fees.
For the credit card transactions invoices we create in Xero, we create the following line items:
- Gross receipts for that settlement -- This is assigned to your credit card account
- Yoco's fees -- Assigned to your Fee account
- Tips if any -- Assigned to your Tip account
- Our payment, i.e. the amount that you will see deposited into you bank account is assigned to your Payments account
FIND OUT how to set up your payments account here.
The tips are actually part of your gross receipts because your customer paid the tip on their credit card. We split out the tips as a convenience so that you can more easily manage the payment of that money to your staff. The accounting requirements for tips is that they are treated as a liability and not a revenue. Meaning you, the merchant, are not required to collect VAT on those amounts.
For the cash transaction invoices we create in Xero, those will the following line items:
- A separate line item for each cash transaction. They will be assigned to the revenue account created during the integration set up.
- A single line item for all cash tips, again assigned to the tips account.
Note that there are no fees or payments associated with these invoices as Yoco neither charges a fee for cash transaction nor manages the payments for them.