FactoryOS Xero Integration

The FactoryOS Xero integration creates a two-way sync between your manufacturing operations and accounting records. When you complete a job or ship an order in FactoryOS, the integration automatically generates invoices in Xero with the correct line items, quantities, and pricing. Inventory adjustments from production runs, material consumption, and stock receipts flow directly to Xero's inventory tracking, ensuring your cost of goods sold (COGS) calculations stay accurate.

Key data synced includes:

• Sales invoices and credit notes from completed manufacturing orders
• Customer records with contact details and billing addresses
• Inventory levels and valuations based on real-time production data
• Payment status updates to reconcile accounts receivable
• Purchase orders and supplier bills for raw materials and components

This eliminates the need to manually re-enter financial data, reducing errors and freeing up time for production planning instead of administrative tasks.

Setting up the factoryos xero integration typically takes 15-30 minutes and requires admin access to both platforms. The connection uses OAuth authentication for secure, token-based access without sharing passwords.

1. Navigate to Integrations: Log into FactoryOS and go to Settings > Integrations > Accounting Software
2. Select Xero: Click "Connect to Xero" and authorize FactoryOS to access your Xero organization
3. Map accounts: Match your FactoryOS product categories to Xero chart of accounts (revenue accounts, inventory asset accounts, COGS accounts)
4. Configure sync settings: Choose what data to sync (invoices, inventory, customers) and set the sync frequency (real-time or scheduled)
5. Test the connection: Process a test invoice or inventory adjustment to verify data flows correctly

Most manufacturers enable automatic invoice creation and daily inventory syncs to balance real-time accuracy with system performance.

The FactoryOS Xero integration is particularly valuable for small to mid-sized custom fabricators and manufacturers who need tight coupling between shop floor operations and financial reporting. Metal fabrication shops use it to track job costing and material consumption across custom orders. Woodworking and furniture manufacturers rely on the integration to manage made-to-order inventory and project-based invoicing.

Common user profiles include:

• Custom fabricators running job shops with project-based billing and complex material tracking
• Contract manufacturers who need accurate COGS reporting for each client's production runs
• Small manufacturers (5-50 employees) without dedicated accounting staff who need automated financial workflows
• Make-to-order operations where inventory turns quickly and manual reconciliation creates bottlenecks

These businesses typically process 50-500 orders monthly and need their accounting system to reflect actual production status without manual data transfer.