Xero Accounts & Contacts Setup

Posting from Majestri to Xero directly is certainly a dream experience, but before we get too trigger-happy, let's take a look at some of the information that should be created in Xero.

This article talks about the Xero Contacts and Accounts that should be set up in advance, and what type of information we'll be posting there.

Contacts

There are only two contacts required to be created in Xero who will be responsible for owning all transactional activity that occurs.

Majestri Contact

The Majestri contact is used for two purposes in Xero:

As the contact responsible for depositing proceeds into the club bank account from our payment processing services.
As the contact responsible for the expense transaction which recognises our charges for payment processing services.

Member Deposits Contact

This one comes down to personal taste. In our humble opinion, it is not necessary to have a separate contact for every member who pays money to the club directly by EFT or Cheque. We recommend the creation of a single contact who would represent all monies paid directly to the club bank account.

If you choose to create each member as a separate contact in Xero, then you may find the integration a little tiresome, as we won't create the contact 'in-situ' - they need to be selected from a list of pre-existing contacts. This may seem a little restrictive, but again, we are quite prescriptive and opinionated on how things should be done in this area.

Accounts

It's likely that you'll already have some of these set up in Xero already as they are used for a number of accounting purposes. Let's still run through each account and what we use them for, so you can make sure that you've got an account ready that best fits that purpose.

Bank Account

This will probably already be set up in Xero. It's the bank account that you've elected to receive Majestri deposits of proceeds, as well as where your members deposit money when they pay directly to the club.

Clearing Account

Majestri deposits a lump sum in your bank account that represents your revenue minus our payment processing charges. In order to correctly reflect that behaviour and leave a concise audit trail, we require a clearing account to be set up which must be a Current Asset account. We recommend a name for this account like "Payment Processor Clearing Account".

Event Registration Revenue Account(s)

This is a good opportunity to create a separate revenue account in Xero for each type of event that you run as a club. As an example, you may like to see Outdoor Season revenue vs. Coaching Clinic revenue vs. Social Event revenue, etc. Because of Majestri's in-depth knowledge of what money is used for, we can show you the breakdowns and have revenues disbursed across multiple event registration revenue accounts.

There must be at least one revenue account set up for accepting registration revenue. This integration will not work without at least one.

Shop Revenue Account

Create a revenue account that will contain transactions from all Majestri online shop related revenue.

Payment Processor Expense Account

This is the defined expense account to which we will post Majestri's payment processing charges. Depending on how many other payment processing services you use, it may be worthwhile having a general Payment Processing Expenses account.