Cin7 Xero Integration: Sync Inventory and Accounting

The Cin7 Xero integration connects your cloud inventory management platform to Xero's accounting system so that sales, purchases, inventory movements, and financial transactions flow automatically between the two. Cin7 acts as your inventory hub -- tracking stock levels, orders, and fulfilment across every sales channel -- while Xero remains your accounting system of record for invoices, bills, tax returns, and financial reporting.

Cin7 (formerly DEAR Systems) is a certified Xero connected app listed in the Xero App Store, with a 4.44 out of 5 rating from nearly 200 reviews. The integration eliminates the double-handling of data that plagues businesses running inventory and accounting on separate platforms. Instead of manually exporting CSVs or re-keying invoice data, every transaction created in Cin7 is synced to Xero automatically -- keeping your general ledger, VAT reports, and cash flow dashboards accurate without manual effort.

If you are evaluating Xero integrations for inventory accounting automation, the Cin7 Xero integration is one of the most fully-featured options available for product-based businesses in Europe and beyond.

Cin7 offers two distinct products, and both integrate with Xero -- but the integrations differ in scope and architecture. Understanding the difference matters before you commit to a plan.

Cin7 Core (formerly DEAR Systems) is built for small to mid-sized businesses. It offers around 30 integrations, strong manufacturing and bill-of-materials (BOM) features, and a straightforward Xero connection wizard. If you were previously using DEAR Systems with Xero, your integration continues to work under the Cin7 Core name with no migration required.

Cin7 Omni is the enterprise and mid-market product. It offers 500 or more integrations, advanced EDI and 3PL support, and a newer Xero V2 integration with improved sync performance. Cin7 Omni also includes enhanced COGS sync features that are not available in Core.

For most growing European businesses running Xero, Cin7 Core provides the best balance of features and cost. If you need 500+ integrations, EDI compliance, or advanced warehouse management, Cin7 Omni is worth the custom pricing conversation.

Understanding the Cin7 Xero sync data flow is essential before you connect the two platforms. Data moves in specific directions depending on the type of record.

When you first connect Cin7 to Xero, the integration imports your Chart of Accounts, customer and supplier contacts, tax rules, and payment terms. This ensures that every transaction Cin7 creates uses the correct Xero account codes and tax rates from the outset. The initial import is a one-time operation -- after this, Cin7 becomes the primary source for new records that are then exported to Xero.

Once connected, Cin7 continuously exports sales invoices, credit notes, purchase invoices (bills), payments, and optionally purchase orders and COGS journal entries. Products created in Cin7 are also linked to Xero items. The Cin7 Xero sync can run automatically at a configurable interval, or you can trigger a manual sync on demand. Auto-sync frequency, start date, and start time are all adjustable from the integration settings dashboard.

Follow these steps to complete the Cin7 Xero setup. The process takes 15-30 minutes depending on the complexity of your Chart of Accounts.

Before you begin, ensure you have the following in place:

• An active Cin7 Core or Cin7 Omni account -- all plans include the Xero integration at no extra cost
• An active Xero subscription with the required account types created (Sales, COGS, Inventory, and Expense accounts)
• Base currencies must match between Cin7 and Xero -- if your Cin7 base currency is EUR, Xero must also be set to EUR
• The connecting user must have the Integration: Accounting - Xero permission enabled in Cin7
• Be aware that installing the Xero integration enforces two-factor authentication for all Cin7 users on the account

In Cin7 Core, navigate to Integrations > Xero and click Connect to Xero. The wizard asks whether you want to keep your existing Cin7 data or start with a fresh account. For most businesses with existing inventory records, choose to keep your data and map it to Xero during the next step.

Cin7 imports your Chart of Accounts from Xero and presents a mapping screen. You must map each Cin7 account type to the corresponding Xero account. Account types must match -- for example, a Cin7 revenue account must map to a Xero revenue account, not an expense account. Tax rules are also mapped at this stage: select the Xero tax rate equivalent for each Cin7 tax rate, ensuring you match the correct direction (sales tax vs purchase tax).

The wizard gives you the option to import customers, suppliers, or both from Xero. If you already have customer records in Cin7, you can skip this step and rely on the ongoing sync to export new Cin7 contacts to Xero. You can also import contacts later via CSV if needed.

A summary screen lists everything that will be imported and mapped. Review it carefully -- once you click Complete, the process is irreversible and your Cin7 account is temporarily locked during the migration. You will receive an email notification when the migration finishes and your account is ready to use.

After the initial connection is complete, configure your ongoing sync preferences:

• Auto-sync frequency -- set how often Cin7 pushes data to Xero (e.g., every hour, every 4 hours, daily)
• Purchase order export -- enable or disable the export of purchase orders to Xero
• Invoice consolidation -- group sales invoices by day or month before exporting, reducing clutter in Xero (more on this below)
• Consolidation rules per sales channel -- set different grouping rules for Shopify, Amazon, WooCommerce, and other channels

These settings can be adjusted at any time from the Xero integration dashboard in Cin7.

One of the most valuable aspects of the Cin7 Xero integration is its ability to sync cost of goods sold (COGS) and inventory valuation data automatically. This is where many businesses struggle with manual processes, and where the integration delivers the most time savings.

How COGS syncs to Xero: When goods are sold in Cin7, the system calculates the cost based on your chosen valuation method (typically weighted average or FIFO). Cin7 Omni creates a monthly COGS transaction that syncs to Xero as a manual journal entry -- debiting the COGS account and crediting the Inventory account. Cin7 Core handles COGS through journal entries tied to individual transactions.

Inventory adjustments: Stock adjustments made in Cin7 (write-offs, stocktake corrections, production completions) are synced to Xero as journal entries. A positive adjustment debits the Inventory account and credits an Expense account; a negative adjustment reverses this.

Manufacturing and BOM: If you use Cin7's production features, the cost of raw materials consumed during manufacturing is tracked within Cin7. When the finished goods are sold, the full production cost flows through to Xero as COGS -- giving you accurate margin reporting without manual cost allocation.

Important limitations:

• COGS sync is only available for the past 12 months of transactions
• You cannot re-sync COGS for periods on or before the Xero lock date
• Do not enable inventory tracking in Xero when using Cin7 -- Cin7 must be the sole inventory tracking system, otherwise you will get duplicate Cin7 Xero journal entries for COGS

High-volume e-commerce businesses selling through Shopify, Amazon, WooCommerce, and other channels can generate hundreds of individual invoices per day. Syncing every single invoice to Xero creates clutter and can hit Xero's API rate limits.

Cin7 Core solves this with invoice consolidation. Instead of exporting each invoice individually, you can group sales invoices by day or month before they are sent to Xero. Consolidation groups invoices that share the same date (or month), currency, tax-inclusive/exclusive status, and sales channel.

The multi-channel data flow works like this:

1. A customer places an order on Shopify (or Amazon, WooCommerce, etc.)
2. Cin7 receives the order and updates inventory levels across all connected channels
3. Cin7 creates a sales invoice and applies the consolidation rules you have configured
4. At the next sync interval, the consolidated invoice is exported to Xero with all line items grouped

This keeps your Xero ledger clean and manageable, even at high transaction volumes. Note that consolidation applies only to sales invoices and credit notes -- purchase invoices, service purchases, and purchase-related payments are always synced individually.

For a deeper look at how Cin7 handles e-commerce orders, see our guide to Cin7 Shopify integration.

Even well-configured integrations occasionally produce errors. Here are the most common Cin7 Xero sync issues and how to resolve them:

• Account mapping errors: If account types are mismatched between Cin7 and Xero, transactions will fail to sync. The fix is to disconnect the integration and re-run the Connect Wizard with corrected mappings.
• Duplicate COGS entries: This happens when inventory tracking is enabled in both Cin7 and Xero. Turn off Xero's built-in inventory tracking and let Cin7 handle COGS exclusively.
• Tax rate mismatches: Verify that the required tax rates exist in Xero for the correct direction -- sales tax rates for sales invoices, purchase tax rates for bills. Missing rates cause sync failures.
• Foreign currency errors: If Cin7 creates a transaction in a currency that is not enabled in Xero, the sync will fail. Enable the currency in Xero first, then re-trigger the sync.
• Lock date conflicts: Ensure that the Xero lock date and Cin7's sync date range do not overlap. Cin7 cannot post transactions to locked periods in Xero.
• Viewing errors: All failed syncs appear in the Errors tab of the accounting integration dashboard in Cin7, with details on the specific transaction and error message.

The Xero integration is included in every Cin7 plan at no additional cost. Here is the current pricing structure:

All plans include the Xero (or QuickBooks Online) integration, 24/7 global support, access to the Cin7 Help Centre, and the Cin7 Academy. A 14-day free trial is available for Cin7 Core plans.

It is worth noting that some user reviews mention significant annual price increases of 13-14% with limited additional features. Factor this into your total cost of ownership calculations when comparing Xero inventory apps like Cin7 against alternatives such as Unleashed, Katana, or Fishbowl.

The Cin7 Xero integration handles the heavy lifting of inventory-to-accounting sync, but it does not eliminate every manual task. Reconciliation exceptions, approval workflows, reporting, and anomaly detection still require human attention -- unless you add an automation layer on top.

FinTask's AI-powered platform picks up where integrations leave off. For Xero users already running Cin7, FinTask can automate invoice matching, flag reconciliation discrepancies before they become problems, and keep your accounts payable and receivable workflows running without manual intervention.

If your team spends hours each week on tasks that the Cin7 Xero sync does not cover, FinTask is the next step in your Xero automation journey.

Book a free demo and see how FinTask fits into your existing Cin7 and Xero workflow -- with real numbers tailored to your transaction volume.