Xero Integration with Pandadoc

Focus:  The focus of this self-help article is to provide steps and information to how to install the Xero integration with PandaDoc and how to use PandaDoc to send invoices to Xero.

What does this integration do? Once connected, this integration will allow you to create invoices in Xero from PandaDoc when used in combination with the Pricing table block. The PandaDoc document will also be linked to the Xero Invoice.

Please note:  The Xero integration is only available for templates and documents you have created using the “Create” Feature. Templates and documents you have created in PandaDoc via “Upload” will not have this feature.  You can have more than one pricing table block to be used with Xero Invoices.  All taxes and discounts added to the pricing table block will flow into the Xero invoice.

Feature availability:  Can be enabled for all plans. This feature is available in our in Add-on Store. Please go to the “Add-ons Store” found on the bottom left of your account to locate and enable. Click here to learn  more about the Add-ons Store.

Step 1: Enabling via Add-ons store. On the bottom left, click on the ‘cube’ icon “Add ons Store”, Go to Integrations Category, find and click on Xero. Use the Green button “+Add to PandaDoc” to add Xero to your account.

Xero - Add on Store

Step 2: Connecting Xero to PandaDoc.  Inside of PandaDoc, go to Settings > Integration and you will See “Xero”.

Step 3: Follow the steps.  To Install, click on “Connect Xero”.

Step 4: Login into Xero. In order to connect, you will need to login with your Xero account.

Step 5: Authorize.  Confirm your Xero organization and click on “Authorize”.

Step 6: Xero settings.  Here you will see Xero settings that you can enable by default. This includes “Invoice Currency”, “Account” (Only “Revenue Accounts will show) and “Tax”. When you set these settings, these will be used every time when creating  invoices in Xero From PandaDoc.

Option: Pass SKU as Item Code: By default this option is “Checked”, however if you do not want to use Item codes in Xero, but rather SKU’s, uncheck this box.

Step 7: PandaDoc documents, pricing table block and Xero options. Now, you can open any existing document and access Xero.  Go to More > Xero…

Then you will see the Xero Settings.

Step 8: Invoice settings… First you will see “invoice total”. Use the “Total is tax inclusive” if you wish to use the taxes on the pricing table to the Xero invoice. Use the “Total is tax exclusive” if you do not wish to include the taxes on the pricing table to the Xero invoice.

Second, here you will see two options for the creation of the invoice.

“Automatically generate invoices when document is completed”. If you use this option, the Xero Invoice will automatically be created, ONCE the PandaDoc document has been changed to the “Completed” Status. Please note this might take up to 20-25 minutes to create this invoice once the status has been changed.

“Generate Invoices Manually”. Using this option, you will need to create the invoice manually.

Step 8a: Click on “Add an invoice”. Please note even if you are using the “Automatically generate invoices when document is completed”. You still need to click on “Add an Invoice” in order to setup percentage.

Step 9: Using invoice creation options to split out total of pricing tables. If you click on “Add an Invoice”, you will be shown options in order to create multiple invoices.  Click on “Add another invoice” and you will be provide the options to split out the total percentage of the pricing table.

When ready, click on “Generate Invoices” to manually generate an invoice.

Step 10: Confirming invoice was created.  Once you click on the green Generate Invoices button, the system will process the request and the top of the screen, you will see a message, “Invoices were successfully created in Xero”.

Step 11: Xero invoice connected to PandaDoc document. Now in the Xero settings for your document, at the top, you will see an invoice link that you can click which will take you into the Xero Invoice.

Step 12: Xero invoice. Now,  if you login to Xero, you will see the invoice that has to be created.

Settings - Integrations - Xero - Docment Created - Generated invoice in Xero

Step 13: Troubleshooting “Code XXX was invalid” when trying to send Invoices over to be Xero.

Why does this happen?: This is because SKU items is not empty in PD pricing table and there is no such items in Xero created
To Fix:
If you are using SKU #’s in the your PandaDoc pricing table / catalog, they will need to have matching SKU numbers in Xero in order to create an invoice.

If you do not wish to create these items in Xero, you can clear your SKU numbers from the catalog items or from the individual pricing tables after the item is added.

You can either use NO SKU numbers in the pricing table or SKU numbers that match the item code in Xero.

Please note: If at least one item in pricing table with non empty SKU has no corresponding item in Xero – invoice won’t create.
Make sure that Xero’s Item Code names fully matches to SKU codes

Step 14: Troubleshooting “Inclusive/Exclusive Taxes” for your PandaDoc Xero Settings and invoices created in Xero.

Tax inclusive

Invoice <100% =100%
Total tax is inclusive Send invoice by whole pricing table.

Calculation logic is: iterate by whole pricing table, sum all items to total price including taxes.

Send invoice by each line item separately.

Calculation logic: iterate by whole pricing table; calculate total price for each line item including all types of taxes.

* be aware of prices into PandaDoc and Xero invoice might be different because of applying total tax for each one during calculation.

Total tax is exclusive Send invoice by whale pricing table.

Calculation logic: iterate by whole pricing table, sum all items to total price excluding all types of taxes.

Send invoice by each line item separately.

Calculation logic: iterate by whole pricing table; send price of each line item without any type of taxes including.

Tax inclusive works when all next conditions satisfied for invoices:

  • PandaDoc invoice percent not equal 100%;
  • PandaDoc invoice tax type is inclusive.

In this case Xero total will be calculated with next rule:

Xero total = PandaDoc total * invoice percent
5.50$ = 11.00$ * 50%

Xero subtotal = Xero total – Xero tax
5.03$ = 5.50$ – 9.25%

Xero tax type always displayed as exclusive.

Xero tax percent not dependents from PandaDoc tax.

PandaDoc tax percent used in Xero invoices as included to PandaDoc total.

Tax-2

Tax exclusive

Tax exclusive works when any of next conditions satisfied for invoices:

  • PandaDoc invoice percent equal 100%;
  • PandaDoc invoice tax type is exclusive.

In this case Xero total will be calculated with next rule:

Xero subtotal = PandaDoc subtotal * invoice percent
5.00$ = 10.00$ * 50%

Xero total = Xero subtotal + xero tax
5.46$ = 5.00$ + 9.25%

Xero tax type always displayed as exclusive.

Xero tax percent not dependents from PandaDoc tax.

PandaDoc tax percent not used in Xero invoices at all.

Tax-4

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