The Karbon and Xero Blue Invoice Sync enables seamless synchronization of invoices between Karbon and Xero Blue. This integration allows you to create invoices in Karbon and automatically sync them to Xero Blue with accurate invoice details, ensuring your accounting records stay up to date.
Prerequisites
You must have an active Karbon account with administrator privileges.
You must have an active Xero (General Ledger) account with Primary Admin credentials.
Ensure you are logged into the correct Xero account that you wish to connect to Karbon.
You must have connected and authorized the Xero contact sync.
Steps
Setting Up the Xero Invoice Sync
1. Access Xero Settings – Invoice Sync
Go to Connected apps → Xero General Ledger in Karbon.
Confirm your Xero account is connected.
Note: If you haven’t set up contact sync yet, please refer to the [Contact Sync help document].
Find the Xero Invoice Sync section on this page.
Review these prerequisites:
Accounts in Xero match Karbon Service Types.
Tax rates are aligned between Karbon and Xero.
Primary currency in Xero matches Karbon’s currency.
Click Set up sync to begin the configuration.
2. Set Default Accounts for Revenue and Expenses
Each invoice line item in Xero requires an Account Code from the Chart of Accounts (COA).
Set the default revenue account in Xero. Karbon maps your Service Types to Xero accounts, but if no specific mapping exists, the default account will be used.
Set the default expense account. Any billable expenses added from a work item or contact will be attributed to this account in Xero.
Click Next to proceed.
3. Map Service Types to Xero Accounts
You’ll see a list of all Karbon Service Types.
By default, all service types map to your default revenue account.
You can assign specific Xero accounts for each Service Type for more detailed reporting.
Click Next when done.
4. Map Tax Rates
Link Karbon tax rates to corresponding Xero tax rates.
Complete the tax rate mapping for all applicable rates.
Click Next to continue.
Note: If percentages don’t match, you will see validation alerts prompting corrections.
5. Select Invoice Sync Start Date
Choose a start date for invoice syncing. Only invoices with an issue date on or after this date will sync to Xero.
This date can be set to any day in the future, giving you control over which invoices get synced.
Confirm your selection and click Next.
6. Review Settings
Review a summary of your configured account mappings, tax rate mappings, and sync start date.
You can return to this page anytime to update settings by clicking edit.
Creating and Sending Invoices in Karbon
Go to the Unbilled tab to view all items ready to be invoiced.
Click Create Invoice to generate the invoice.
Review the invoice details. You can edit descriptions, dates, and amounts if needed before sending.
Once finalized, click Approve and Send to issue the invoice.
Note: Once the invoice is sent, Karbon automatically updates the invoice status to Awaiting Payment and triggers the sync to Xero.
Verifying the Invoice Sync in Xero
Locate the client you invoiced.
Find the synced invoice. The invoice number will match the one created in Karbon.
Open the invoice and verify:
The Invoice Date and Due Date match what was entered in Karbon.
Each invoice line item reflects:
The correct Description from Karbon.
The correct Account Code based on your Service Type mappings.
Tax rates and total amounts align with the Karbon invoice.
Note: The invoice inside Xero will be created with a status of 'Awaiting Payment'
Further Reading 📖