Cimplico Sync, allows practices to replicate invoices into satellite Xero files (separate legal entities) to split out revenue relating to separate parts of the business(e.g. locations or divisions).
The Xero file set up for the 'consolidated' group is the file Ignition and XPM sync with.
Cimplico Sync replicates the invoices and contacts that are generated in Xero so the correct branding themes (ie ABN, Bank Account & logo) can be used. This allows practices to allocate invoices to different divisions/entities in Xero correctly, while maintaining a single client database and a single subscription to XPM and Ignition.
How does Cimplico Sync know where to sync the invoices for each entity?
Cimplico Sync knows where to replicate the invoices using Xero Tracking Categories. A tracking category for “Entity” is required and all entity files need to be included as labels appropriately. Tracking categories are the critical part of this process so ensure these are correct and have been allocated to each Ignition client before proceeding.
How does my client receive the invoice?
Every invoice needs to have a specific branding theme relating to the Xero file it’s being synced therefore you’ll need to manually send the invoices to the clients from the satellite (entity) files as this ensures the correct ABN, Bank Account & logo are used.
This can be actioned daily/weekly/monthly depending on the size and billing frequency of your practice.
Can I use invoice notifications in Ignition?
It’s best practice to have synced invoices sent from the individual satellite files. This ensures the correct branding theme is used every time.
For one section of the practice (e.g. Tax and Compliance) you could have the invoice sent from the group file and this would allow you to use the Invoice Notification via Ignition. Cimplico Sync will still sync the invoice to the relevant entity for you.
Which Xero Tracking Categories are used?
Ignition can connect to 2 tracking categories in Xero. Cimplico Sync requires one to be used for "Entities” which is used by sync the relevant invoices into the correct satellite file.
Depending on your setup, you may use the second tracking category for Division, Partner, or something else but the second tracking category needs to exist in the Satellite (entity) files as well.
I’m collecting fees through Ignition, how does this work with Cimplico Sync?
The payment collection process is the same. However, the invoice reconciliation process requires a manual step.
Ignition will deposit the disbursal into the group bank account and this will be coded to the Ignition clearing account using a Xero Bank Rule. Cimplico Sync will sync this payment into the Satellite files.
The fees belonging to each entity will then need to be split and transferred to the relevant entity bank accounts. You can easily identify this by running an Account Transactions report in Xero, grouped by Entity.
I currently use XPM. Does this impact my workflow and invoice matching process?
As XPM and Ignition sync to the Group Xero file, the link between Ignition → Xero → XPM is unchanged from the standard process.
What if I have one client in Ignition that I engage with services across multiple entities?
As Xero Tracking Categories can currently only be set at the client level in Ignition, you may need to create 2 different clients so invoices can be correctly linked to their respective entities.
When connecting Xero Blue is there anything I need to consider when setting up my Xero branding themes?
Yes, you would want to have one branding theme that covers both payment scenarios:
Ignition collected payments
Manual payments in the Payment Terms
It is recommended that you connect the branding theme from your main entity and either ensure invoice notifications are either turned off altogether or at least invoice notifications are turned off for any clients that will be engaged by a different entity from the default.
Cimplico Sync would love to see Ignition introduce the ability to assign a tracking category at a service level and a nominated disbursals account at the proposal level.
e.g. ABC Trust is a client for:
Financial planning (Proposal 1 - bank account 1 & tracking category 1)
Accounting (Proposal 2 - bank account 2 & tracking category 2)
Lending (Proposal 3 - bank account 3 & tracking category 3)
This suggestion has already been submitted to our product team for research, however in the meantime, please be aware of the considerations above!
Support for Cimplico Sync
For support and troubleshooting quires relating to Cimplico Sync please reach out to firstname.lastname@example.org