General ledger Accounts

Distinct system differences:

Xero does not allow duplicate general ledger account names. When duplicate account names occurred in the previous system, the general ledger account number will be added to the account name.

General ledger account fields that will be converted:

• Account number;
• Account name;
• Account default tax rate (mapped to default Xero VAT rates); and
• Account type.

2 Types of accounts will be created in Xero:

1. Bank Accounts: Note: the actual banking account numbers a required field in Xero and will be created as “1211211234567” during the conversion. This needs to be updated post-conversion if this is not updated the bank feeds will not be able to function.
2. Other general ledger accounts

Customer and Supplier Accounts

Distinct system differences:

Xero does not allow duplicate customer/supplier account names. When duplicate account names occurred in the previous system, the customer/supplier account number will be added to the account name.

Xero uses a single database table for customers and supplier ie “Contacts”. Because of this a “(C)” will be added to the customer account numbers and a “(S)” will be added to supplier account numbers during conversion. This will ensure contacts are unique and will separate customers and supplier post-conversion.

Customer and Supplier account fields that will be converted:

• Customer/Supplier account number;
• Customer/Supplier account name;
• Customer/Supplier First name (will be combined with Last name);
• Customer/Supplier Last name (will be combined with First name);
• Customer/Supplier Postal address line 1;
• Customer/Supplier Postal address line 2;
• Customer/Supplier Postal address line 3;
• Customer/Supplier Postal address line 4;
• Customer/Supplier Postal address postal code;
• Customer/Supplier Physical address line 1;
• Customer/Supplier Physical address line 2;
• Customer/Supplier Physical address line 3;
• Customer/Supplier Physical address line 4;
• Customer/Supplier Physical address code;
• Customer/Supplier Phone number;
• Customer/Supplier Mobile number;
• Customer/Supplier Fax number;
• Customer/Supplier Email address;
• Customer/Supplier Tax number; and

Inventory Items

Distinct system differences:

Xero only provides the option to store a single preset selling price per inventory item. During conversion, the first selling price will be stored to the VAT inclusive selling preset price in Xero.

Inventory Item fields that will be converted:

• Item code;
• Item description; and
• Item selling price as explained above.

General ledger, Customers and suppliers opening balances

The following workarounds will be used to set the Customer and supplier system account opening balances on conversion date:

• The customer and supplier opening balances will be set by creating invoices/credit notes for each customer/supplier balance on take-on balance date;
• All other general ledger account balances will be set on conversion opening balance date.

Note: no inventory item opening quantities and values will be converted, this will need to be added post-conversion.

Distinct system differences:

Conversion suspense accounts:

The main goal of the transaction phase is to mirror the general ledger movements in Xero. Therefore in the scenario where a single transaction has different debit/credit movement dates, different transaction types are bundled together with a single transaction code, or because of system differences a conversion suspense account is used to get the transaction movements across during conversion.

For example:

Sage Pastel transaction:

Xero transactions during conversion:

In the above example, you will see the total movements against the conversion account add up to ZERO. The net result for the general ledger post-conversion is the same.

The following transaction types will be created in Xero:

• Customer invoices;
• Supplier invoices;
• Customer credit notes;
• Supplier credit notes;
• Manual journal entries;
• Bank transaction: Spend money account;
• Bank transaction: Receive money account;
• Bank transaction: Pay Supplier;
• Bank transaction: Receive Customer; and
• Customer/Supplier Allocations.

Customer invoices

Note: all debit movements against customer accounts will be converted as customer invoices.

The following fields will be converted to Xero:

Invoice lines:      

• General ledger account;                        
• Line description;                        
• Quantity = 1;
• Line item total = unit Price;
• Line VAT; and
• Line VAT type.            

Invoice details:

• Due date = invoice date plus 30 days as standard;
• Invoice date;
• Customer;
• Customer Delivery address;
• Customer Postal address; and
• Document number. *

* If document number is not unique (duplicates in the previous system) OR document does not end with a numeric number (Xero requirement), a five digit random number will be added to document number.

Supplier invoices

Note: all credit movements against supplier accounts will be converted as customer invoices.

The following fields will be converted to Xero:

Invoice lines:       

• General ledger account;                        
• Line description;                        
• Quantity = 1;
• Line item total = unit Price;
• Line VAT; and
• Line VAT type.            

Invoice details:

• Due date = invoice date plus 30 days as standard;,
• Invoice date;
• Supplier;
• Supplier Delivery address;
• Supplier Postal address; and
• Document number. *

* If document number is not unique (duplicates in the previous system) OR document does not end with a numeric number (Xero requirement), a five digit random number will be added to document number.

Customer credit notes

Customer credit notes will be created when the following conditions occur:

• Credit movement against a customer; and
• No bank account debit movement with an identical transaction ID and transaction date.

The following fields will be converted to Xero:

Credit note lines:

• General ledger account;                        
• Line description;                        
• Quantity = 1;
• Line item total = unit Price;
• Line VAT; and
• Line VAT type.            

Credit note details:    

• Credit note date;
• Customer;
• Customer Delivery address;
• Customer Postal address; and
• Document number. *

* If document number is not unique (duplicates in the previous system) OR document does not end with a numeric number (Xero requirement), a five digit random number will be added to document number.

Supplier credit notes

Supplier credit notes will be created when the following conditions occur:

• Debit movement against a supplier; and
• No bank account credit movement with an identical transaction ID and transaction date.

The following fields will be converted to Xero:

Credit note lines:

• General ledger account;                        
• Line description;                        
• Quantity = 1;
• Line item total = unit Price;
• Line VAT; and
• Line VAT type.            

Credit note details:

• Credit note date;
• Supplier;
• Supplier Delivery address;
• Supplier Postal address; and
• Document number. *

* If document number is not unique (duplicates in the previous system) OR document does not end with a numeric number (Xero requirement) then 5 digit random number will be added to document number.

Manual Journal entries

The following fields will be converted to Xero:

• Line Total;
• Line Date;
• Line VAT Type;
• Line VAT total;
• Line Description; and
• Line Reference.

Bank transactions

Three types of bank transactions will be created during conversion:

1. General ledger bank transactions;
2. Supplier Payments; and
3. Customer Receipts.

Each bank transaction type will be created when the following conditions occur (Transaction ID and date have to match in all instances):

1. General ledger bank transactions
   1. Debit movement on bank account = receive money bank transaction OR Credit movement on bank account = spend money bank transaction; and
   2. Movements on general ledger accounts.

2. Supplier payments
   1. Credit movement on the bank account; and
   2. Debit movement on Supplier account.

3. Customer Receipts
   1. Debit movement on the bank account; and
   2. Credit movement on the Customer account.

The following fields will be converted to Xero:

Bank transaction lines:

• General ledger account/Supplier/Customer;
• Line VAT type;
• Line VAT total;
• Line type: Account/Customer/Supplier;
• Line total amount;
• Line Description; and
• Line reference.

Bank transaction details:

• Bank account ID;
• Bank transaction date;
• Bank transaction reference;
• Bank transaction description;
• Bank transaction Total (Total > 0 = receive transaction; Total < 0 Spend transaction);
• Bank transaction description;
• Accepted = true;
• Reconciled = true; and
• Payee = “Bank Transaction”.

Customer/Supplier Allocations

Customer and supplier allocations will be done on a FIFO basis excluding open invoices as per the previous system. This will result in a similar customer and supplier age analysis post-conversion.

Note in cases where open customer/supplier invoice data is corrupt the FIFO method will be used on all invoices for the applicable customer or supplier.

The following fields will be converted to Xero:   

• Allocated to document ID (Invoices);
• Source document ID (Customer receipt / Supplier Payment / Customer credit note / Supplier credit note); and
• Allocation total.