#Xero: Dental4Windows (D4W) with Xero Integration

Sina Burgo

November 23, 2024 02:36

In this article you will find the following:

Dental4Windows (D4W) integrates with Xero so your receipt totals can be synchronised to your Xero Bank Feed. Read the details below carefully to select suitable options for the practice.

Integration

About the integration

The D4W integration ONLY sends the Receipt Totals to Xero: No receipt-level details are included
This is a one-way integration: Data entered in Xero will not flow back to D4W
Any backdated receipts will NOT be included in the daily synchronisation and must be manually entered into Xero
If you delete or adjust a receipt in D4W after the receipt totals have been synchronised, you must manually update your Xero account accordingly
Each practice location must be individually mapped
You can send receipts from each location to a separate Xero organisation or all locations to the same organisation

Integration Methods

D4W offers two (2) methods to integrate with Xero:

Insert Daily Takings as Receive Money Transactions: The most common and recommended method. D4W receipt totals are sent to Xero as bank transactions, appearing in the Xero Bank Feed or clearing accounts for straightforward reconciliation.
Insert Daily Takings as Accounts Receivables: Less common, used only if your accountant prefers to manually pay off invoices in Xero. D4W receipt totals are sent as receivable entries, requiring additional reconciliation steps. This is not recommended unless you fully understand the implications.
Notes:
Regardless of the integration method, only D4W Receipts are sent to Xero—not invoices.
Sending receipts as Accounts Receivables can cause confusion if you’re not clear on the process. Consult your accountant to choose the best method for your practice.

Before You Start

An active Xero subscription is required to use this integration If you don't have one, visit www.xero.com to subscribe.
Choose the integration method that best suits your needs. The "Receive Money Transactions" method is the most common and recommended option, but we strongly advise consulting your accountant or bookkeeper to confirm it aligns with your practice’s workflow and bank account setup.
Your accountant or bookkeeper can advise you on the appropriate Sales/Revenue account and default bank account for the integration, especially if you opt for the "Accounts Receivables" method, which requires careful handling.

With this information handy, you are now ready to set up the Xero integration.

Dental4Windows Setup

Integration Method

Configure the integration method in Dental4Windows to determine how receipt totals are sent to Xero.

Go to Location Setup > General tab > Group: Xero
Xero Integration Method:
1. Insert Daily Takings as Receive Money Transactions (recommended)
2. Insert Daily Takings as Accounts Receivables (not recommended unless advised by your accountant)
If this is your first setup, proceed to the next steps. If changing an existing method, a warning dialogue will appear.
1. Click Yes only if you’re certain of the change and understand the implications.
  1. All existing account mappings for all locations will be permanently discarded.
  2. The new method applies only to new transactions; existing ones in Xero remain unchanged.
  3. You will need to reconfigure mappings (see Account Mapping below). Consult your accountant before proceeding.
2. If unsure, click No to cancel
  
  Note: Changing methods after setup can disrupt your Xero data. Ensure you’re prepared to reconfigure mappings if needed.

Security

To ensure that only authorised users can make modifications to your Xero configuration, you can select which users/groups are allowed to do so.

Go to Location Setup > Security tab
1. Select the User or the Group
2. Select Banks from Modes/Actions list
3. Tick Allow Modifications in Xero

Xero Management

To access the Xero Management screen

Go to Location Management > Banks tab
1. Menu Bar name: Operations > Xero Management
2. To make any changes, tick the Allow Modifications checkbox

Connecting to Xero

Open the Connections tab
1. Click Connect to Xero to open the Xero login page in your browser
Enter the Xero account email and password
1. Click Log in
2. Click Allow access to authorise D4W to access the data in Xero to enable the integration

Account Mapping

Map your D4W receipt totals to Xero accounts based on your chosen integration and banking methods. The integration method ("Receive Money Transactions" or "Accounts Receivables") determines how totals appear in Xero, while the banking method defines how receipts are grouped.

Highlight the Practice Location
Click Mapping

Mapping for "Insert Daily Takings as Receive Money Transactions"

With this method, receipt totals are sent as bank transactions to the Xero Bank Feed or clearing accounts. Follow these steps based on your banking method:

Select your Xero Organisation from the list
Select the Xero Banking Method:
1. All Receipts for this Location go into one Sales/Revenue Account
  1. If you cannot see any accounts in the Sales/Revenue Account or Bank Accounts lists, click Retrieve Accounts from Xero
  2. Select a Sales/Revenue account (e.g. 200 – Sales)
  3. If using a clearing account, select the Bank Account (e.g., a clearing account named "Clearing Account")
  4. Set default account for unmapped transactions (e.g. 260 - Other Revenue)
  5. Tick Include this Mapping in the Daily Synchronisation
  6. Click Update and Exit
    
    Result: Totals appear in the selected Bank Feed or Clearing account as "Receive Money" transactions
2. All Receipts for this Location go into different Sales/ Revenue Accounts by Payment Type:
  1. If you cannot see any accounts in the Sales/Revenue Account or Bank Accounts lists, click Retrieve Accounts from Xero
  2. Against the relevant bank accounts, click Methods of Payment button
  3. Tick the payment methods and click OK
  4. Select the Default Sales/Revenue Account for any unmapped payment methods. This is an important step to catch any payment methods that you may add in the future that don’t get mapped
  5. Tick Include this Mapping in the Daily Synchronisation
  6. Click Update and Exit
    
    Result: Totals are split by payment type and appear in the corresponding bank accounts as "Receive Money" transactions
3. All Receipts for this Location go into different Sales/Revenue Accounts by Provider:
  1. 1. If you cannot see any accounts in the Sales/Revenue Account or Bank Accounts lists, click Retrieve Accounts from Xero
    2. Against the relevant bank accounts, click Providers button
    3. Tick to select the Providers to include and click OK
    4. Select the Default Account for any unmapped providers. This is an important step to catch any providers that you may add in the future that don’t get mapped
    5. Tick Include this Mapping in the Daily Synchronisation
    6. Click Update and Exit
      
      Result: Totals are split by provider and appear in the corresponding bank accounts as "Receive Money" transactions
4. All Receipts for this Location go into different Sales/Revenue Accounts by Payment Type and Provider:
  1. 1. If you cannot see any accounts in the Sales/Revenue Account or Bank Accounts lists, click Retrieve Accounts from Xero
      
      This process is similar to Dental4Windows Bank Redirections:
    2. Select the relevant Bank Account
    3. Tick box to select the payment method
    4. Select the providers
    5. Click Add
      Repeat steps c, d, e for all the payment methods for this account
      Repeat steps b, c, d, e for all relevant Bank Accounts.
    6. Select the Default Account for any unmapped providers. This is an important step to catch any providers that you may add in the future that don’t get mapped
    7. Tick Include this Mapping in the Daily Synchronisation
    8. Click Update and Exit
      
      Result: Totals are split by payment type and provider and appear in the corresponding bank accounts as "Receive Money" transactions
    9. Select the Sales/Revenue Account
    10. This location is now set up. Repeat the process for any additional locations.

Mapping for "Insert Daily Takings as Accounts Receivables"

With this method, receipt totals are sent as receivable entries in Xero, requiring manual reconciliation with invoices. Follow these steps based on your banking method.

Select your Xero Organisation from the list
Select the Xero Banking Method:
1. All Receipts for this Location go into one Sales/Revenue Account
  1. Select a Sales/Revenue account (e.g. 200 – Sales)
  2. Set default account for unmapped transactions (e.g. 260 - Other Revenue)
  3. Click Update and Exit
    
    Result: Total appears as a single Accounts Receivable entry in Xero, requiring manual invoice matching
2. All Receipts for this Location go into different Sales/ Revenue Accounts by Payment Type:
  1. Against the relevant bank accounts, click Methods of Payment button
  2. Tick the payment methods and click OK
  3. Select the Default Sales/Revenue Account for any unmapped payment methods.
  4. Click Update and Exit
    
    Result: Totals are split by payment type and appear as separate Accounts Receivable entries in Xero, requiring manual invoice matching
3. All Receipts for this Location go into different Sales/Revenue Accounts by Provider:
  1. Against the relevant bank accounts, click Providers button
  2. Tick to select the Providers to include and click OK
  3. Select the Default Account for any unmapped providers.
  4. Click Update and Exit
    
    Result: Totals are split by provider and appear as separate Accounts Receivable entries in Xero, requiring manual invoice matching
4. All Receipts for this Location go into different Sales/Revenue Accounts by Payment Type and Provider:
  1. Select the relevant Bank Account
  2. Tick box to select the payment method
  3. Select the providers
  4. Click Add
    Repeat steps c, d, e for all the payment methods for this account
    Repeat steps b, c, d, e for all relevant Bank Accounts.
  5. Select the Default Account for any unmapped providers.
  6. Click Update and Exit
    
    Result: Totals are split by payment type and provider as separate Accounts Receivable entries in Xero, requiring manual invoice matching

Account Setup in Xero

If using " Receive Money Transactions" you may need a clearance account in Xero for temporary holding of D4W receipt totals before reconciliation

Note: This step in NOT required for " Accounts Receivable"

Confirm with your accountant if a clearing account is necessary and for the correct code and name based on your practice account structure.

Log in to Xero
Go to Accounts > Chart of Accounts > Add a New Account
Configure the account:
1. Account Type: Current Asset
2. Tax: BAS Excluded
3. Enable Payments to this account: Check this box
Add details:
1. Code: A unique number (e.g. 181, limited to 10 characters)
2. Name: A short title (e.g. Clearing Account, limited to 150 characters)
3. Description (optional): A brief note (e.g. Used for temporary holding of D4W receipt totals)
4. Show on Dashboard Watchlist and Show in Expense Claims: Optional; typically unchecked
5. Click Save