💡 Why this matters
When Auxo Workshop is connected to Xero, stock movements and job costs are posted to Xero at specific points in the workflow. Because inventory uses average cost and some movements only post at invoicing time, balances in Auxo Workshop and Xero may not always look identical at a glance.
This guide explains:
How stock and WIP are posted from Auxo Workshop to Xero
Which Auxo Workshop reports should be compared to which Xero accounts
A practical reconciliation process you can follow at month‑end or any time
Why small variances are normal, and when they need attention
🔄 How Auxo Workshop posts to Xero
Understanding the posting logic is essential before attempting reconciliation.
📦 Inventory (Stock on Hand)
When a stock purchase order is finalised
Auxo Workshop posts the following to Xero:
Debit Inventory Asset (Stock on Hand)
Credit Accounts Payable
GST is included where applicable
When a stocked part is issued to a job
On‑hand quantity reduces in Auxo Workshop
No journal is sent to Xero at this stage
The value moves into WIP in Auxo Workshop and appears in the WIP (Work in Progress) Report – Parts column
When the job is invoiced (stocked parts)
Auxo Workshop posts:
Debit Cost of Goods Sold using the average cost at time of posting
Credit Inventory Asset (Stock on Hand)
📝Note: This is only relevant for parts with a tick in the "Stocked" checkbox when viewing the Edit Part screen, if this is unticked the part is not considered 'Stocked' and the journal postings will not occur.
🧾 Job‑ordered parts (purchase order raised directly to a job)
When the job purchase order is finalised
Auxo Workshop posts:
Debit WIP
Credit Accounts Payable
GST is included where applicable
This value appears in:
Auxo Workshop WIP Report → Orders column
Xero WIP general ledger account
When the job is invoiced
Auxo Workshop posts:
Debit Cost of Goods Sold using the receipt cost
Credit WIP
The value is removed from:
WIP Report → Orders column
Xero WIP account
🔍 Which Auxo Workshop reports match which Xero accounts
This is the most important section for reconciliation.
📦 Inventory (Stock on Hand)
What to compare
In Auxo Workshop
Stock Valuation Report
As at date
Total on‑hand value
WIP Report
Parts column total
Add these two values together for the same date
In Xero
Trial Balance
Inventory Asset (Stock on Hand) account balance
Same as at date
Example:
Stock Value = 22.50:
{Auxo Workshop Stock Valuation Report screenshot}
WIP Parts = $7.50:
{Auxo Workshop WIP Report → Parts column screenshot}
Xero Stock on Hand Account (for matching date range) = $30
{Xero Trial Balance screenshot}
Small differences are expected due to:
Average cost recalculation over time
Backdated transactions
Rounding
Manual journals entered directly in Xero
🧾 Work in Progress (WIP)
What to compare
In Auxo Workshop
WIP Report
As at date
Orders column total only
In Xero
Trial Balance
WIP general ledger account
Same as at date
Example:
Auxo Workshop WIP Report → Orders Cost = 27.50
{Auxo Workshop WIP Report → Orders column screenshot}
Xero = 27.50
{Xero WIP account screenshot}
These values should usually match closely.
✅ Recommended reconciliation process
This process can be followed at month‑end or at any time.
📦 Step 1 – Reconcile inventory
Run the Stock Valuation Report (On-Hand) as at your chosen date
Run the WIP Report for the same date
Add:
Stock Valuation total
WIP Report Parts column total
Run the Xero Trial Balance for the same date
Compare the Auxo Workshop total to the Inventory Asset (Stock on Hand) balance in Xero
If there is a variance, check whether any purchase orders have been received or partially received but not finalised.
To check this:
Open the Purchase Order List
Filter by Status = Received or Partially Received
These orders have not yet been posted to Xero
🧾 Step 2 – Reconcile WIP
Run the WIP Report as at the same date
Use the Orders Cost column total only
Compare this value to the WIP balance in Xero
If the balances differ, check for:
Purchase orders received or partially received but not finalised
Failed Xero syncs
Manual journals in Xero
Date mismatches
Timing of supplier credits
🧮 Step 3 – Adjusting Xero to match Auxo Workshop
Small variances are normal and may accumulate over time. To correct these, a periodic manual journal can be entered in Xero.
Inventory adjustments
Adjust the Inventory Asset (Stock on Hand) account by the variance
Post the other side of the journal to Cost of Goods Sold
WIP adjustments
Adjust the WIP account by the variance
Post the other side of the journal to Cost of Goods Sold
This brings Xero back into alignment with Auxo Workshop totals.
📉 Why inventory balances may not match exactly
Inventory differences usually occur because:
Stocked parts use average cost at time of invoicing
Xero stores historical posted values
Average cost changes over time
Rounding differences accumulate
A small variance is expected.
Large or increasing variances should be reviewed.