Drum Integration with Xero
Drum offers a tight integration with Xero, streamlining financial workflows and maintaining data consistency. This integration spans login, cost management, invoice management, and data synchronization.
0. Allowing "Advanced" Drum & Xero Connections
Drum users can connect one of their Xero tenants/accounts to Drum from the "Integrations" area of their Drum settings.
Clicking on the "Connect to Xero For Invoicing, Billing and Payroll" button under the "Additional Integrations" area of the integrations page and following the steps on Xero that follow will allow Drum to integrate with your Xero account.
Process: A user can click on the "Integrations" option from their user profile dropdown to view the Xero connection options. Clicking on the "Connect to Xero For Invoicing, Billing and Payroll" button will give Drum the required permissions.
Relationship: A Drum account can have a single connected Xero tenant. Each user can connect their own Xero accounts within that same tenant, but Drum allows Xero integration via an internal permissions in certain scenarios, even if a Drum user doesn't have their own Xero account.
1. Logging in with Xero
Drum users can leverage their Xero credentials for login, simplifying access and eliminating separate Drum logins if required.
If you've created your Drum account via the Xero App Store, this will be your default method of logging into your Drum account, but you can reset your password for a more standard login workflow if required.
Process: When creating a new Drum account, users are presented with the option to "Log in with Xero." Clicking this button redirects the user to Xero's authentication page. After entering their Xero credentials, the user is redirected back to Drum, and their Drum account is automatically created (or linked if it already exists). This is the default login method for Drum accounts created from the Xero App Store.
2. Cost Management
Drum's cost management features directly integrate with Xero's Purchase Order (PO) and bill functionalities.
Creating Xero Purchase Orders from Drum
Users can allocate costs against projects within Drum. These allocated costs can then be converted into Xero POs directly from Drum.
Process: Within a Drum project, users navigate to the "Costs" section. They add cost entries, specifying details like description, quantity, rate, and account code. Once costs are entered, users can view the cost that they want to convert to a PO and click the purchase order status indicator to select an associated Xero Purchase Order status. Drum then generates a PO in Xero, transferring the line items and account codes. A unique PO number is automatically generated in Xero. The Drum cost entry is then linked to the Xero PO.
Relationships: A Drum cost entry can be linked to one Xero PO. Syncing data between a purchase-order and Drum is manual (if changed in Xero) due to technical limitations.
Click on the "No PO" status to change the status of the Xero Purchase Order integration.
Choose an option from the drop-down menu to determine the status of the Purchase Order once integrated with Xero.
Creating Xero Bills from Drum
Beyond POs, Drum allows users to create Xero bills directly from a project cost.
Process: Similar to PO creation, users can select costs in the "Costs" section of a Drum project. A user must first set the bill issue date and due date for the bill to be valid in Xero. They can also click on the "Set Default Dates" to use the defaults they've set in their Drum account settings. Clicking the Xero bill status indicator allows a user to select the status of the associated bill in Xero and then generates that bill in Xero, populated with the relevant details from the selected Drum cost entries.
Relationships: A Drum cost entry can be linked to one Xero bill. A Xero bill can be created independently of a Xero Purchase Order, or it can be linked to a Xero Purchase Order.
Set the bill issue date and due date before changing the status from "No Bill" to a valid Xero bill status. Users can also click on "Set default dates" to speed up the process.
Once integrated, the bill can be easily viewed on Xero via the link and the status can be viewed from Drum.
Two-Way Synchronization for Bills
Bills created in Xero from Drum maintain a two-way sync. Changes made in either Drum or Xero are automatically reflected in the other platform.
Process: If a user edits a bill in Xero that was created from Drum, those changes are immediately reflected in the corresponding Drum cost entries. Conversely, changes to linked cost entries in Drum are pushed to the corresponding Xero Bill. This ensures data consistency.The ability to change values of a bill are limited by the status of the bill (e.g. approved bills have limited editing abilities).
Relationships: The link between the Drum cost entry and the Xero bill is maintained throughout the editing process.
3. Invoice Management
Drum's invoice management is tightly coupled with Xero.
Invoice Creation and Xero Connection
Invoices in Drum can only be raised if the user has a connected Xero account with the necessary permissions. This connection can be made via the "Integrations" link that appears from your user profile dropdown.
Process: When a user attempts to create an invoice in Drum, the system checks for a connected Xero account with the "Create/Read Invoices" permission. If the connection and permission are present, the user can proceed. If not, they are prompted to connect their Xero account and grant the necessary permissions. If a user cannot see the "Invoices" tab in a project, they do not have a valid associated Xero connection.
Converting Drum Invoices to Xero
With a single click, users can convert a Drum invoice into a Xero invoice.
Process: Within Drum's invoice creation workflow, after finalizing the invoice details, and changing the "Drum Status" to "Approved", the user can click on the Xero Status option and choose an associated Xero status to best fit their needs. Drum then generates the corresponding invoice in Xero, mirroring the structure and details. The Xero invoice number will then be populated in Drum.
Requirements: For a Drum invoice to be ready for Xero integration, the following are required:
All line items with non 0 totals must have an associated finance account.
The invoice must have an issued date and due date set.
The invoice must have a "Drum Status" of "Approved".
Relationships: A Drum invoice is linked to a single, corresponding Xero invoice.
From an invoice, once all requirements have been met, a user can change the "Xero Status" option to the appropriate status.
The "View on Xero" and "Preview Invoice PDF" buttons will appear below the line items once a Xero integration has been successful to simplify access between the two platforms.
Two-Way Synchronization for Invoices
Like bills, invoices also benefit from two-way synchronization.
Process: Changes made to a Xero invoice that originated from Drum are reflected in Drum. Similarly, modifications to the linked Drum invoice are pushed to Xero.
Relationships: The link between the Drum invoice and the Xero invoice is maintained throughout the editing process.
4. Data Synchronization
Upon initial connection of a Xero account (not including the "login only" connection), Drum automatically imports key data elements from Xero.
Process: During the Xero connection process, after the user authorizes Drum's access, Drum retrieves the connected Xero tenant's tax rates, finance accounts, line item codes, earning rates, and tracking categories from Xero. This data is then stored within Drum.
Relationships: Drum uses this synchronized data for cost allocation, invoice creation, and other financial operations.
5. Disconnecting from Xero
Users can disconnect their Drum account from Xero in two ways:
Disconnecting via Drum
Process: In Drum, users access their profile menu and select "Integrations." The Xero connection will be displayed. Clicking the "Remove" button disconnects Drum from Xero.
Disconnecting via Xero
Process: Users can also disconnect from within Xero by navigating to "Manage App Connections." Locating Drum in the list and clicking "Disconnect" will remove the integration from both sides.
Frequently Asked Questions about Drum's Xero Integration
This FAQ addresses common questions about Drum's integration with Xero.
General Questions
Q: Why should I integrate Drum with Xero?
A: Integrating Drum with Xero streamlines your financial workflows, reduces manual data entry, and ensures data consistency between your project operations and accounting. It allows you to seamlessly manage costs, create purchase orders and bills, generate invoices, and keep both platforms synchronized.
Q: What data is synchronized between Drum and Xero?
A: Drum synchronizes tax rates, finance accounts, line item codes, earning rates, and tracking categories from Xero. Additionally, purchase orders, bills, and invoices created in Drum can be pushed to Xero, and changes made in either platform are reflected in the other.
Q: What permissions does Drum need in Xero?
A: Drum requires permissions to create and read purchase orders, bills, and invoices within your Xero account, as well as to import accounting concepts such as tax rates, finance accounts and more.
The specific permissions requested will be displayed during the connection process with Xero.
Q: Can I use Drum without connecting to Xero?
A: While you can use many of Drum's core features without a Xero connection, certain functionalities, such as creating Xero Purchase Orders, Bills, and Invoices, require a connected Xero account with the appropriate permissions.
The invoicing features in Drum requires a valid finance connection.
Cost Management Questions
Q: Can I create a Xero Purchase Order from multiple Drum cost entries?
A: A cost in Drum can have a single associated Xero Purchase Order (this is optional). That purchase order can have multiple line items that reflect the cost in Drum.
Q: Can I create a Xero Bill without a corresponding Purchase Order?
A: Yes, you can create a Xero Bill directly from Drum cost entries, independent of a Xero Purchase Order. You can also link a Xero Bill to an existing Xero Purchase Order if needed by creating the purchase order first via Drum and later creating a Xero bill.
Q: What happens if I edit a Xero Bill that was created from Drum?
A: Any changes you make to the bill in Xero will be automatically reflected in the corresponding Drum cost entries, maintaining synchronization.
Invoice Management Questions
Q: Can I create invoices in Drum if I haven't connected to Xero?
A: No, Drum needs a valid finance connection to create invoices. This is how Drum can create unique invoice numbers and creates a clear delineation of responsibilities between the systems in your business.
Q: What happens if I edit a Xero invoice that was created from Drum?
A: Similar to bills, any edits to a Xero invoice originating from Drum will be automatically synchronized back to the corresponding Drum invoice and vice-versa.
Disconnecting Questions
Q: How do I disconnect Drum from Xero?
A: You can disconnect via Drum by navigating to your profile menu, selecting "Integrations," and clicking "Remove" next to the Xero connection. You can also disconnect from within Xero under "Manage App Connections."
Q: What happens to my data if I disconnect Drum from Xero?
A: Disconnecting the integration will stop future synchronization. Existing data that has already been synced will remain in both platforms. However, any subsequent changes will not be reflected in the other platform. You can always reconnect the integration to resume synchronization as required.