‍About the Magnetic & Xero Integration

The Magnetic–Xero integration connects your operational data in Magnetic with your accounting data in Xero, so financial records stay accurate, up to date, and aligned across both platforms.

Magnetic pulls key accounting structures from Xero (contacts, item types, and codes), and pushes invoices, bills, and manual journals back to Xero automatically.

What Syncs Between Magnetic & Xero

Contacts & Item Types (from Xero to Magnetic)

When you connect Xero to Magnetic:

• Contacts (customers and suppliers) are linked between platforms
• Item types (products, services, inventory, and supplies) are mapped one-to-one
• Tax, sales, and cost-of-sales codes from Xero become available in Magnetic

This creates a persistent link between records in both systems. Updates to item names and related fields stay synchronised, ensuring clean, consistent data across platforms.

Invoices, Bills & Journals (from Magnetic to Xero)

Once your mappings are set, Magnetic can automatically export:

• Tax invoices
• Supplier invoices
• Credit notes
• Expenses (exported as Xero bills)
• Manual journals (for WIP and accrual reporting)

Exports run automatically in the background as soon as documents are saved in Magnetic. Magnetic validates the data before sending it to Xero and clearly flags any errors so they can be resolved quickly.

Each successfully exported document creates a deep link between Magnetic and Xero, keeping both systems aligned.

Payment Status & Two-Way Updates

The integration supports two-way synchronisation for document status:

• Payment and status updates made in Xero are reflected back in Magnetic
• Updates made in Magnetic can be pushed back into Xero

This means account managers can see real-time payment status directly in Magnetic, without needing to access Xero. Payment statuses are refreshed every 15 minutes.

WIP & Accrual Accounting Support

If a billing entity in Magnetic is configured for WIP reporting and a job has billing accruals enabled, Magnetic will automatically:

• Create manual journals
• Export them to Xero when tax invoices are created or journal adjustments are made

This ensures accurate financial reporting throughout the lifecycle of a job — not just at invoicing time.

Expense Exporting

Expenses in Magnetic can be exported to Xero as bills.

Unlike invoices, expenses are exported using the details of the user who created them, allowing internal costs to be tracked alongside external supplier costs. This provides clearer visibility into cashflow and project profitability at every stage.

Real-Time Exporting

Magnetic exports invoices, bills, and journals to Xero in real time. There’s no batching, manual uploads, or reconciliation work required — accountants always see an up-to-date view of the business in Xero.

Important Notes

• Your Xero integration must be connected to an active Magnetic account
• The email address used in Xero and Magnetic must match
• If your Magnetic account is deactivated, the integration will stop working
• To restore the integration, update the email address in Xero (if required), then reconnect the integration in Magnetic