Once you have set up your OFX platform to connect with Xero, all new bills and related transactions will sync automatically at the appropriate time. Transactions that occurred before the integration was live will not be synced automatically.

Requirements and Pre-requisites:

• You must have an active Xero integration set up in your OFX account.

• The Xero user authenticating the integration must have permission to create bills in Xero.

• If you transact in multiple currencies, your Xero plan must support multicurrency.

• Only new bills created after integration setup will sync; pre-existing bills and transactions require manual handling.

• The bills with payment feature is only available for Full Suite plan.

Next Steps:

To use the Xero integration for bills, follow these steps:

1. Set Up Xero Integration:

   • Ensure your OFX account is connected to Xero. For setup instructions, see: How to connect with Xero.

2. Bill Creation and Sync (Bidirectional): Bills can be created in either OFX or Xero and will sync bidirectionally. This makes bills a truly collaborative feature where finance teams can work in their preferred platform while maintaining data consistency across both systems.

   1. OFX to Xero Sync:

      1. Create/upload a bill in OFX.

      2. If the recipient has never been paid before via OFX, the bill will appear in OFX with Draft status.

      3. If the recipient has been paid before via OFX, the bill will appear in OFX with Awaiting Payment status.

         

   2. Xero to OFX Sync:

      1. A bill in Xero will only sync to OFX when it is in the "Awaiting Payment" status. This status is sometimes referred to as an "Approved Bill" in Xero.

      2. Once a bill reaches "Awaiting Payment" in Xero, it will sync to OFX for payment processing.

      3. The bill will sync to the “Awaiting Payment” status in OFX if it is for a recipient that you have paid previously otherwise if it is the first time you are paying this supplier it will go to “Draft” status to set up the banking details for the recipient

3. Bill Payment and Status Updates:

   1. When a bill is paid in OFX, the integration automatically updates the corresponding bill in Xero, marking it as “Paid” and adding the payment record.

   2. This keeps both systems in sync without manual intervention.

      

4. Handling Pre-Integration Transactions:

   • Transactions and bills created before integration will not sync automatically.

   • You can import historical transactions into Xero via CSV or set an opening balance.

5. Payments without Bills

   You can create payments without Bills, see How are Standalone Payments synced with Xero?

Why is this important:

The Xero integration for bills enables seamless, bidirectional syncing between OFX and Xero. This ensures your accounts payable process is efficient, reduces manual data entry, and keeps your financial records consistent across both platforms. By syncing bill statuses and payments automatically, you save time and minimise reconciliation errors.

Related FAQ Article:

• How do I create a payment?

• How do I upload bills?

• How are Standalone Payments synced with Xero?