Create Xero Invoice and Payment from PayPal Charge using Zapier

Take PayPal payments and use Xero accounting software? Use Zapier to automatically create a Xero Invoice and Payment when any PayPal charge is made, saving you time and ensuring data accuracy.

Zapier is an online service that automatically connects apps together. So when a PayPal charge is made it triggers a “Zap” (that we are about to create) to use the data from PayPal to create an Invoice and Payment in Xero.

Side Note. The PayPal payments I used while setting this up where created by the WordPress membership plugin MemberPress so you’ll see some references to fields specific to MemberPress.

Step 1 Sign Up to Zapier

Zapier provides a free 14-day full trial, and after that time you will need to Upgrade to a paid plan to work with Xero as it’s classified as one of their “Premium” platforms. Zapier plans start at US$25/month or US$240/year if paid upfront.

Step 2 Login to PayPal and Xero

Login to your PayPal and Xero accounts as you will need access to them with setting up a Zap.

Step 3 Create a Zap

1. Login to Zapier
2. Go to https://zapier.com/apps/paypal/integrations
3. Scroll to the bottom and click Make a Zap with PayPal
4. On “Select PayPal Trigger” page choose Successful Sale. Click Save + Continue.
5. On the “Connect PayPal” page an IPN URL is displayed and needs to be put into PayPal.
   1. 1. Click Copy to clipboard.
      2. Click on the link PayPal IPN settings to load the appropriate PayPal page.

   If there isn’t a Notification URL in PayPal paste in the value and make sure “Receive IPN messages” is turned on. If you already have a Notification URL then you need to do a more complicated task of enabling two tasks to trigger after there is a PayPal payment by following the instructions by Zapier at How to Use Multiple IPNs PayPal.

6. On the “Pick a Sample” page choose a sample and click Continue.
7. On the “Choose an Action App” page search and select Xero
8. On the “Select Xero Action” page select Create Sales Invoice
9. On the “Select Xero Account” page select Xero account, or if this is the first time using Xero in Zapier click Connect Account and follow the steps. When ready click Save + Continue.
10. The “Set up Xero Sales Invoice” page is where you set how fields from PayPal are exported to Xero. Clicking on the icon on the right of each text field will show all the sample options from the “Pick a Sample” page loaded earlier.This is customised to your requirements but I used the following, with the values in [] from the samples:
    • Contact Name: [First Name] [Last Name]
    • Email Address: [Payer Email]
    • Status: Approved
    • Due Date: [Payment Date]
    • Reference: [Subscr ID]
    • Sent to Contact: yes
    • Line Description: [Item Name] Membership
    • Line Quantity: 1
    • Line Unit Price: [Mc Gross]
    • Line Account Code: [Membership Fees]
    • Line Tax Type: [GST on Income]
11. Click Continue.
12. Check this works on the Testing page by clicking Send Test to Xero. This will create a Sales Invoice immediately in Xero, but as Unpaid.
13. The final OPTIONAL step is to create a payment in Xero by adding another action. Click the + on the left side.
14. On the “Choose an Action App” click on the Xero icon which should be displayed, if not do a search.
15. On the “Select Xero Action” choose Create Payment. Click Save + Continue.
16. On the “Select Xero Account” page there should already be a Xero account from earlier so make sure correct account is selected then click Save + Continue.
17. On the “Set up Xero Payment” page set up all the fields as required. This is customised to your requirements but I used the following settings, with the values in [] from the samples:
    • Invoice Number: [Create Sales Invoice][Invoice Number]
    • Paid To: [Membership Fees]
      • Note. The account that you select must be setup to take payments. This can be done in Xero, go to Settings > Chart of Accounts. Select account and make sure checkbox “Enable payments to this account” is ticked.
    • Amount: [Create Sales Invoice][Total]
    • Reference: [PayPal – Successful Sale][Subscr ID]
18. When finished setting up payment click Continue.
19. This will enable you to test the payment which is completely optional (but recommended). Click Send Test to Xero. This will immediately create a payment in Xero and mark previously tested invoice as paid.
20. If happy with how it works click Finish.
21. Give the Zap a name like “Create Xero Invoice and Payment from new PayPal Sale”
22. If you are ready for it to start working click on the OFF switch to turn it on.

Once the Zap is turned on Zapier will poll for any new PayPal charges every 5 – 15 minutes, depending on the plan you signed up for.