Shopify Orders to Xero Invoices for Retail & E-commerce

# Shopify Orders to Xero Invoices - Retail & E-commerce

## Purpose
Set up when you sell online through Shopify and use Xero for accounting to eliminate manual invoice creation and reduce errors.

## When to Use
Automatically create Xero invoices from Shopify orders with correct line items, GST, and customer details for seamless e-commerce accounting.

## Instructions
1. Review the template below and familiarise yourself with the structure
2. Replace all [bracketed placeholders] with your retail & e-commerce business details
3. Customise the tone and formatting to match your brand
4. Save in your preferred tool (Shopify or Xero)

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## Shopify Orders to Xero Invoices

### Overview
Automatically generate a Xero invoice every time a paid Shopify order is placed, with correct line items, GST calculations, customer details, and payment status, eliminating manual accounting data entry.

### Prerequisites
- Shopify store (Basic plan or above)
- Xero account (Standard or above)
- Zapier account (Professional plan recommended for multi-step with line items)
- Chart of accounts set up in Xero with a "Sales" revenue account
- GST settings configured in Xero (BAS reporting)

### Setup Steps

**Step 1: Prepare your Xero chart of accounts**
Ensure you have the following accounts configured in Xero:
- Revenue account for online sales (e.g., "200 - Online Sales Revenue")
- Shipping revenue account (e.g., "201 - Shipping Revenue")
- GST tax rate set to "GST on Income" (10%)

**Step 2: Create a new Zap in Zapier**
Log in to Zapier and click "Create Zap". Name it "Shopify Order to Xero Invoice".

**Step 3: Configure the Shopify trigger**
- App: Shopify
- Trigger event: "New Paid Order"
- Account: Connect your Shopify store
- Test: Place a test order in Shopify (use Shopify's test gateway) and confirm Zapier retrieves it

**Step 4: Configure the Xero action**
- App: Xero
- Action event: "Create Sales Invoice"
- Account: Connect your Xero organisation

**Step 5: Map fields**

| Shopify Field | Xero Field | Notes |
|--------------|------------|-------|
| Customer Email | Contact Email | Used to match or create Xero contacts |
| Customer First + Last Name | Contact Name | Creates new contact if not found |
| Billing Address | Invoice Address | Street, city, state, postcode |
| Order Number | Invoice Reference | Prefix with "SHOP-" for easy identification |
| Order Date | Invoice Date | Date the order was placed |
| Line Item Name | Line Description | Product title |
| Line Item Quantity | Quantity | Units ordered |
| Line Item Price | Unit Price | Price excluding GST |
| Shipping Cost | Separate Line Item | Map to shipping revenue account |
| Total Tax | Tax Amount | Verify against Xero GST calculation |

**Step 6: Configure GST treatment**
- Set tax type to "GST on Income" for all line items (Australian domestic orders)
- For international orders, set tax type to "GST Free Exports"
- Use a Zapier filter step to check the shipping country and apply the correct tax treatment

**Step 7: Mark invoice as paid**
- Add a second Xero action step: "Create Payment"
- Payment amount: Shopify order total
- Payment date: Shopify order date
- Payment account: Your Shopify Payments bank account in Xero

**Step 8: Test the integration**
1. Place a test order in your Shopify store with at least two different products
2. Ensure payment is processed (use test gateway)
3. Wait 2-3 minutes for the Zap to run
4. Open Xero and locate the new invoice
5. Verify: correct contact, line items, GST calculation, and payment recorded
6. Check the invoice reference matches the Shopify order number

### Error Handling
- **Duplicate invoices:** Use the Shopify Order Number as the Xero Reference field. Check for existing references before creating.
- **Customer not found in Xero:** Zapier will create a new contact. Review new contacts weekly to merge duplicates.
- **GST discrepancy:** If Shopify and Xero calculate GST differently due to rounding, review the tax report monthly.
- **Refunds:** Set up a separate Zap for Shopify refunds that creates Xero credit notes.

### Maintenance
- Reconcile Shopify Payments payouts in Xero against bank feeds weekly
- Review new Xero contacts created by the Zap monthly and merge duplicates
- Update product-to-account mapping when adding new product categories
- Test the Zap after any Shopify theme or checkout changes

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**Complexity:** intermediate | **Setup time:** 20 minutes | **Tools:** Shopify, Xero, Zapier

Note: This template has been tailored for retail & e-commerce businesses in Australia. Adjust terminology and compliance references to match your specific context.