Transaction types that may lead to issues

Transaction types that may lead to issues

We always try to deliver the conversion with full transactional history.  On occasions, if the following transaction types occur extensively we may only be able to provide a service with no or reduced history. In some instances it may prevent us from being able to complete the conversion at all.  If this occurs we will endeavour to advise you as soon as possible.

Any integrated add-ons

Add-ons bring data into accounting systems in different ways. For example, if you have an add on which posts a manual journal to accounts receivable or accounts payable, as this action cannot be completed in Xero we will bring in the payments into a secondary account.  If required, post conversion guidance will be provided on the Action Checklist sent upon completion of the conversion.

Archived Chart of Accounts

If a previously used account has been archived this may prevent extraction of data for this chart of account. Please ensure these accounts are all active.

Bills and Invoices

If a bank account type is used as a line item in a bill or invoice, it will cause issues during conversion, as Xero does not permit this configuration. We recommend selecting a premium package with Bank Account mapping, which allows these accounts to be coded as either a current asset or current liability. Alternatively, you can update the file before the conversion starts to resolve this issue.

GST set up as a bank account

In some accounting packages there is the ability to set GST Collected and GST Paid-up as Bank Accounts / Credit Cards. In Xero this action cannot be replicated and GST bank accounts can not be set up as the system account for GST. We suggest selecting a premium package with Bank Account mapping so that you can have this created as a current liability to avoid any conversion issues.

Manual adjustment of GST

If the source file has transactions where the GST has been manually adjusted after the system has calculated the GST then it is possible that GST when converting into Xero may cause the automation of the conversion to fail. eg GST has been manually edited from 10%.
          

Manual journals to control accounts

Xero does not allow journals to control accounts (Bank, AR, AP). Where we encounter these transactions we use the conversion clearing account to replicate these journals in Xero.  However extensive use of journaling to control accounts is outside the scope of our automated service and we will advise if we encounter this in your file.

Multiple Accounts Receivable / Accounts Payable accounts

Xero only allows for one system Account for each Accounts Receivable / Accounts Payable. Where possible we will merge multiple Accounts Receivable / Payable accounts to conform with Xero’s functionality. However, if there are many, or complex, AR / AP accounts in the source file we may not be able to complete the conversion.

Tax Codes used for both 0% and 10%

In some accounting packages you have the ability to set up and use Tax Codes as both 0% and 10%.  Xero only allows one to be applied consistently throughout its use. As a result, we often find that there is a BAS Discrepancy between the two file. This is due to Xero only including calculated GST in the Activity Statement and to deliver a file with the correct GST balance we include variance as a transaction line within the invoice or bill. We do provide an email post-conversion advising this variance so you can make the necessary adjustments if you wish, alternatively, you can provide this to your financial professional for their records.

Tracked inventory

We cannot convert Tracked inventory however this can be set up post-conversion, for more information please see here.

Trade Debtors/Trade Creditors accounts linked to bank accounts

In some accounting packages you have the ability to set up bank accounts as the system account for Accounts Receivable / Accounts Payable. In Xero this action cannot be replicated and bank accounts can not be set up as the system account for Accounts Receivable / Accounts Payable. We suggest selecting a premium package with Bank Account mapping so that you can have this created as a current liability to avoid any conversion issues.

Transactions with greater than 1,000 lines

There are limits to the number of API calls that we application can make against a particular Xero organisation. This includes transaction line limits - Xero will not allow Invoices / Bills to have in excess of 1000 transaction lines.

Negative Discounts

Xero does not allow negative discounts and therefore when we push in these transactions the conversion fails. If you would like to convert and you know you have used this function you will need to edit the transaction in the source file editing the line to be the correct total with no discount applied.

Undeposited Funds Account

If the source data includes an undeposited funds account that is not set up as a Bank account and cannot be changed, transactions involving a contact cannot be linked due to system limitations. In Xero where the account is not a bank account transactions do not allow a contact to be applied. The financial data will be intact however if you report based on contact some data may report differently.

If we do identify an issue within your file we will let you know as soon as possible.

Please see here for the essential file preparation steps before uploading your file.

Watchouts in MYOB for Conversions

For MYOB Desktop Specifics

Negative Inventory

We cannot convert a file that has the negative inventory setting enabled. This means that there are Items that currently have a negative stock on hand.

If there is a negative inventory items this generally occurs when a sale is made however there is no available inventory. in this instances, the MYOB system will record the cost of goods for the item as per the last sales and COGS.

This is a temporary record which cannot be 'finalised' until the purchase have been received for this item and so MYOB creates a negin.dat record to track this item. Once the inventory item is received then MYOB will complete a cost of goods adjustment based on the correct purchase information. The negin.data tracking record will then be cleared.

For us to be able to convert correctly we need you to address the negative inventory. The reason is two-fold:
  1. Firstly with Negative Inventory switched on, we cannot complete the conversion using our software tool.
  2. Secondly, in order to switch off the Negative Inventory Preference (Setup > Preferences > Inventory), Purchase or Adjustments will need to be applied to bring all inventory to a positive or nil balance. When this is completed the negin.data records will in most cases be cleared, allowing you to switch off the Negative Inventory Preference.

Verification Errors


The MYOB file will require data adjustments if it shows errors during the MYOB Verification process. This is because the data must be error-free to continue.
  1. What you can do:
    1. If you receive a message from us that we were unable to convert due to the verification it may be possible that you can fix it yourself.
    2. Run 'Verify your Company' from the File menu in MYOB to replicate the errors in the file. If you are unable to fix the errors, MYOB may be able to assist: MYOB Company Data file repair
    3. If you can fix so the file can run through the verification process without erroring then rezip and resubmit your file for conversion.

Open Orders With Received Items

If your MYOB file has Orders with Received Items you will need to receive those orders before we can convert the file. This is because an item's value cannot be determined until it is a bill.

All of the Orders with a 'tick' in the Received column are for Inventory and these are Orders that must be converted to a Bill. The tick indicates the user used the Received Items feature under the Inventory Command Centre to tell MYOB these Inventory Items Ordered have been received, However, the Invoice from the Supplier has not been received and the exact cost has not been recognised. What is meant to occur once the Bill arrives is that these Orders should be converted to a Bill. Unfortunately, many users don't do this.


The way MYOB operates is that it creates a temporary record that cannot be 'finalised' until the order is converted to a bill. Behind the scenes, MYOB creates an inventory tracking record to track this information. Once the inventory item is billed then MYOB will complete a cost of goods adjustment and the tracking record will then be cleared. At the moment in this file, there are tracker records that will need to be addressed prior to the data migration into Xero.

If these orders are now converted to a Bill it may double up the inventory/Creditors/GST etc.

Due to this, we need the user/s to make the necessary changes in the MYOB file in addition to any corrections required as only they know what has occurred. For example, have the items actually been received, has the invoice been paid etc., and the correct stock on hand figure.

One option that has been suggested is that the Orders be converted using the same date, and changed from GST to N-T. This allows the user to see the overall effect by studying transactions on that date, it also avoid unintended BAS implications.

If all Orders are processed hopefully this will remove the inventory trackers that are prohibiting conversion. 

.MYO

For .MYO conversions the amount of transactional history we can will depend on which financial year the .MYO file is sitting in.

For Both MYOB Desktop & Online Specifics

What you need to do - files with NO items against open orders

The next step for you is to adjust the items with negative inventory and reload the file for conversion. To update this information in MYOB you complete the following:
  1. Prepare a current Inventory value reconciliation report.
  2. Export this report and 'sort' by value so the items with a negative on-hand count appear at the top. This will show you the items that need adjusting.
  3. Make a backup as MYOB may process some transactions that cannot be reversed. Then either process a Purchase, or enter an Inventory Value Adjustment journal to bring the on-hand count to 0 or more. If doing an Inventory Adjustment Journal, it is recommended you use tomorrow's data and initially leave the adjustment value as $0.
  4. After processing the Purchases or Inventory Adjustment Journals, it is recommend you review all system transactions generated by MYOB. Look under the Transaction Journal > Inventory tab, with dates set to the date used. You may then need to process adjusting transactions to reverse the effect of the system generated transactions. If unsure, you should consult with your bookkeeper or accountant.
  5. Switch off the Negative Inventory Preference. If MYOB does not allow you to de-select it this indicates that not all negin.dat records were cleared. The file may need to be repaired to remove these records manually. FGH Tables may be able to assist with this.

What you need to do - files WITH items against open orders

The next step for you is to adjust the items with negative inventory and reload the file for conversion. To update this information in MYOB you complete the following:
  1. Make a backup as MYOB may process some transactions that cannot be reversed.
  2. Open the Purchases Register and set the dates from the earliest date the file was used to the latest transaction date, or 1 July 1900 to 31 Dec 9999 if unsure. Select the Orders tab. Identify any Orders with a tick in the Received column. These are Orders for Items marked a Received and sold. As with the Negative Inventory Items, MYOB tracks these Sales until this Order is converted into a Bill. Only then does MYOB finalise the COGs for the sale and clear the negin.dat record. It also reverses temporary transaction posted to your Inventory Accrual account. Open each Order and convert it to a Bill. Use tomorrow's date and ensure all Items have N-T as the tax code.
  3. Prepare a current Inventory value reconciliation report.
  4. Export this report and 'sort' by value so the items with a negative on-hand count appear at the top. This will show you the items that need adjusting.
  5. Then either process a Purchase, or enter an Inventory Value Adjustment journal to bring the on-hand count to 0 or more. If doing an Inventory Adjustment Journal, it is recommended you use tomorrow's date and initially leave the adjustment value as $0.
  6. After processing the Purchase or Inventory Adjustment Journals, it is recommended you review all system transactions generated by MYOB. Look under the Transactional Journal - Purchases and Inventory tabs, with dates set to the date used. There may be none, or there may be hundreds. You may then need to process adjusting transactions to reverse the effect of the system generated transactions, including a Service Credit to apply against the Supplier balance. If unsure, you should consult with your bookkeeper or accountant.
  7. Switch off the Negative Inventory Preference. If MYOB does not allow you to de-select it this indicates that not all negin.dat records were cleared. The file may need to be repaired to remove these records manually. FGH Tables may be able to assist with this.
If successful please reload the file for conversion.

Multi-Location Files - MYOB

Xero does not accept multiple locations so we are unable to convert files with this feature. If you would like to reduce multiple locations to a single location, FGH Tables may be able to do this for you. However, we cannot guarantee a successful conversion even if you have paid for this service.

Multi-Currency 

Warning
We cannot convert files where multi-currency has been used.
If multi-currency has not been used in the file then there is a possibility that you may be able to turn off this feature and re-submit the file for conversion. You will need to have the ability to make adjustments in the MYOB file. Adjustments can not be made if you have 'Read only' access.
Criteria to remove multi-currency:
  1. No transactions at all in the file using a foreign currency
  2. No balances in any foreign currency accounts
To turn off multi-currency please follow the steps below:
1. Check any multi-currency accounts for a Balance. If $0 proceed to step 2.
2. Delete currencies in the currency table. You can find currencies in the 'Lists' tab.
Note: If you are unable to delete this currency as it is linked to an account you will need to unlink the relevant accounts. This message usually refers to either receivables and/or payable accounts associated with the currency. Once these links have been removed you will need to re-try to delete the currency.
3. Change any Foreign exchange accounts to AU currency.
4. Remove any foreign currency linked to your contacts.
5. Turn-off multi-currency in the file by un-ticking 'I deal with multiple currencies'.
Once the multi-currency has been successfully removed you can re-load your file for conversion.

Files with Linked Accounts Receivable/Payables

If the trade debtor and/or trade creditor(s) have been used as a linked account elsewhere in addition to sales or purchases, the file will require data adjustments. Trade debtors and trade creditors should only be used once within the linked accounts. In Xero Trade Debtors and Trade Creditors can only be used as system accounts for raising invoices and credit notes.
Info
For example: You might have used one of these accounts as a linked accounts for the undeposited funds account; or trade debtors for both purchases and sales.

Correct

Deposits Against Orders

There are system differences between MYOB and Xero. For example, in MYOB you can apply deposits against orders whereas in Xero you cannot.

A deposit paid on an order will result in a payment before the invoice is created. An order does not have a debit and credit entry and is not structured like an invoice. An order is just a flat document and does not comply with accounting rules. Deposits paid on orders in MYOB at the time of conversion will result in an Out of Balance.

During the conversion process, our conversion tool will go through the information in the 'accounts' and identify any account that has been 'linked' in MYOB. For example, 'customer deposits' linked to 'trade debtors'.

During the conversion 'orders' are converted as 'draft invoices' and any 'deposits' are created into Credit Notes. The Conversion Process creates a Credit Note for the amount deposited.  There will be a separate Credit Note for each Deposit and Contact.

In Xero, you will need to determine if the order should stay in 'Draft', be deleted or needs to be approved (processed). If the deposit needs to be allocated against an Invoice in Xero you can complete the following post-conversion:
  1. Identify the draft invoices that need to be approved.
  2. Approve the 'draft invoice so that this is now appears in 'awaiting payment'.
  3. Allocate the Credit Note against the relevant Invoice.
If you prefer to have your deposit account separated then you can complete the following:
  1. Create the deposit account in the Chart of Accounts.
  2. Move the balance from the Trade Debtor/Creditor to the relevant deposit accounts.
NotesNote: There could be a "deposit out of balance" issue. This can happen if your deposit account is not balanced to all open deposits against orders. If it is balanced, it will be $0 and all deposits show up as credit notes.

INP Tax Codes in MYOB

If transactions have been entered into the source file as Input Taxed then the transactions will convert into Xero as Input Taxed. As an example, if the INP code includes 10% in the source file then we will bring in the transaction and include a second description link to include the 10% portion.

This will ensure that the tax matches the source file.

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