This Help Article covers;

Product (Labour and Material) follow the selected default Xero General Ledger Codes for "Xero Purchases Code" and "Xero Sales Code".

The default is 1 GL Code for all Purchases and 1 GL Code for all Sales.

The "Xero Purchases Code" and/or "Xero Sales Code" can be changed for individual products on the Product's "Product Details" Page by selecting a Dedicated GL Code for the Product's "Xero Purchase Code" and/or "Xero Sales Code".

If you report Labour in Xero using a separate “Chart of Accounts” Code to Material Products “Chart of Accounts” Code, you can still do this, but you need to enter the Xero “Chart of Accounts” Code into each of the Labour “Staff Products” “Xero Purchases Code” and/or “Xero Sales Code” fields as a Dedicated GL Code. We do this to the Labour Products as there will be a lot less of them than Material Products.

⚠️ NOTE: This may not give reliable reporting on the Xero side, as in some cases Xero can only import a Purchase or Sales Invoice as a "1 liner", and in these cases, the default Purchase or Sale GL Codes only applies.

⚠️ NOTE: For a Xero General Ledger Code to display as an option to select, it needs to be ticked as "Show in Katipolt".

This can be done at: Company Settings > Connected Apps > Accounting > Accounting > Chart of Accounts. Tick the GL Code to display.

⚠️ NOTE: Dedicated GL Coded Products (Labour and/or Material) will not be assigned to Xero's Chart of Accounts unless the Product Line for that Product is sent to Xero. I.E. Sold Product of Progress Claims, and Sold Product Lines of Sales Invoices that are sent to Xero as “Send to Xero as one line” are not sent to Xero on Lock.

Labour “Staff Products” are located in the “Staff Products” Expandable Section of the Company Settings “Staff” Top Tab.

Quick Flow:

1. From the Side Menu, Press Company Settings

2. From Company Settings, Press the Staff Top Tab, to display the Staff Products Expandable Section

3. From the Staff Products Expandable Section, search and Press Staff Product(s) to open, then Scroll down to the “Xero Purchases Code” and/or “Xero Sales Code” fields

4. From the “Xero Purchases Code” and/or “Xero Sales Code” fields, Press the drop-down and select the desired GL Code, then [SAVE]

⚠️ NOTE: As you add new Staff, you will need to ensure that their Staff Product Dedicated GL Codes are entered.

Material Products are located in the Product List of the Side Menu's Products Side Tab.

Quick Flow:

1. From the Side Menu, Press the Products Side Tab to display the Products List

2. From the Products List, search and Press the Product to open, then Scroll down to the “Xero Purchases Code” and/or “Xero Sales Code” fields

3. From the “Xero Purchases Code” and/or “Xero Sales Code” fields, Press the drop-down and select the desired GL Code, then [SAVE]

Quick Flow:

1. From the Side Menu, Press "... More". then Select option Suppliers to display the Supplier List

2. From the Supplier List, search and Press the Supplier to open, then Scroll down to “More details” and Press to expand, then Scroll down to the “Xero Code to Use for Purchases” and/or “Xero Code to Use for Sales” fields

3. From the “Xero Code to Use for Purchases” and/or “Xero Code to Use for Sales” fields, Press the drop-down and select the desired GL Code, then [SAVE]