XERO Guide - Using - AA Carpets - As Example Company

AAA Carpets & Rugs - Assignment Guide
1. Update organisation details

a.On the menu bar, click on AAA Carpets & Rugs, and select settings from the dropdown menu.
Select organisation details and record the following details:

 Display name: AAA Carpets – your last name
 Legal name: AAA Carpets & Rugs
 What is your line of business: Carpet retailer
 A.B.N. 65 992 718 643
 Organisation type: Sole trader
Save the transaction
2. Add bank account details

a. From the drop menu on the menu bar from accounting select bank accounts
b. Click on ‘add bank account’ and record the details of the bank account:
As the name Eastern Bank is not in the drop down selection list, Click on ‘add it anyway’
c. Record the bank account details
 Bank: Eastern Bank
 Account Name: AAA Carpets Business bank account
 Account type: Other (or everyday)
 Account number: BSB 628908 number 239643100 AUD
Save the transaction
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3. Add contacts
a. From the menu select
b. Click on contacts – add contact

c. Add contact details: contact name
street address
tax: ABN
Click on save
Repeat the above steps for each customer and supplier contact
Hint: add a customer ‘cash sales’ to record cash sales
4. Add inventory items

a. Select products and services under business in the main menu bar
b. Click on new item

c. Record the following details for each inventory item
 Item code and item name
 Tick ‘I purchase this item’
 Unit (purchase)price
 Purchase account (Cost of Goods Sold)
 Tax rate: GST on expenses
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 Tick ‘I sell this item’
 Unit (selling) price
 Sales account (Sales)
 Tax rate: GST on income
 Tick ‘I track this item’
 Inventory asset account: Select inventory
d. Save the transaction
5. Chart of Accounts
a. From the dashboard select Accounting, then under advanced, select Chart of Accounts from
the drop down menu.
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b. A prepopulated Chart of Accounts will appear based on the business type selected
previously under organisation details.
c. Amend, delete or add accounts as required. A sample Chart of Accounts is attached to

your assignment.
Hint: delete any accounts that are not required.
6. Conversion (opening balances)

a. From the main menu, click on AAA Carpets, Settings from the drop down menu
b. Select ‘Looking for advanced settings’ at the bottom of the screen, then select click on
conversion balances to update opening balances.
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c. Enter the conversion date: this is the month in which you will begin recording transactions
d. Enter the opening balances for AAA Carpets & Rugs as shown on page 3 of the
assignment.
Total debits must equal total credits to be able to proceed to the next step.
Note: Record accumulated depreciation as -$X in the debit column of the trial balance.
e. Accounts Receivable opening balances
Record the opening balances for customers (accounts receivable) by creating a new invoice
for each customer
An example of an invoice with the relevant information is shown below:
When the opening balances for each customer has been recorded, the screen will display
‘matched’. This denotes that the total amount owing by each customer agrees with the
Accounts Receivable opening balance in the opening trial balance.
Click on next to continue
f. Record the opening balances (accounts payable) by creating a new bill for each supplier of
the opening balance owing at the conversion date.
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An example of a bill is shown below:
When the opening balance for each supplier has been recorded, the screen will display
‘matched’ which denotes that the total amount owed to each supplier agrees with the
accounts payable opening balance is the opening trial balance.
Click on next to continue
7. Inventory opening balances

a. From the menu bar click on business then select products and services from the drop down
menu
b. Click on import opening balances

c. Record answers to the following questions:
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Hint: save the file as a.csv file
Click on continue
Click on complete import
Once the file with the opening balances have been imported the following will be recorded
under products and services.
Useful links
8. Links to recording transactions

a. Invoicing
https://central.xero.com/s/topic/0TO1N0000017kmJWAQ/invoices-quotes#business
b. Purchases/Bills
https://central.xero.com/s/article/Purchases-Dashboard#Web
Note: you are not required to record purchase orders
c. Spend money
https://central.xero.com/s/global-search/%40uri#q=expense%20claims
d. Recording general journal entries

https://central.xero.com/s/global-search/%40uri#q=expense%20claims
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AAA Carpets & Rugs - Assignment Guide

1. Update organisation details

Select organisation details and record the following details:

2. Add bank account details

b. Click on contacts – add contact

4. Add inventory items

b. Click on new item

d. Save the transaction

c. Amend, delete or add accounts as required. A sample Chart of Accounts is attached to

6. Conversion (opening balances)

Click on next to continue

Click on next to continue

7. Inventory opening balances

b. Click on import opening balances

8. Links to recording transactions

d. Recording general journal entries

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