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Map Penalty Interest to Xero

Daniel Martin
  • Updated

Overview

If your firm uses Xero integration, Penalty Interest must be mapped to a Xero general ledger (GL) account before batches containing penalty interest are exported.

Penalty Interest exports to Xero as GST-exempt income and credits the selected revenue account. If mapping is not completed, the batch update process will fail and require manual GL recoding.

This article explains how to configure the GL mapping and the implications of not completing it before batch export.

Who can do this

  • Users with the Manage Chart of Accounts permission.

Before you start

Before mapping Penalty Interest:

  • Xero General Ledger integration must already be enabled in OneLaw.
  • Penalty Interest must be enabled in Practice Settings.
  • A suitable revenue GL account must exist in Xero or be created.
  • You must have permission to manage GL mappings.

Steps

  1. Open the Chart of Accounts

    • In OneLaw, go to the Accounts tab on the navigation ribbon.
    • Click Chart of Accounts.
    Navigation ribbon showing the Accounts tab selected, with Chart of Accounts highlighted in the Firm & GL section.

    Result: The Chart of Accounts window opens, displaying the GL mapping configuration.

    Chart of Accounts window showing the GL Accounts section, with the Penalty Interest field highlighted and an empty dropdown ready for selecting a Xero revenue account. GST Rates mapping appears below, and Reload GL Accounts and Add GL Account buttons are visible at the bottom.

  2. Map Penalty Interest to a GL account

    Locate the required Penalty Interest revenue account in the GL Accounts section.

    • If a suitable revenue account already exists, select it from the dropdown.
    • If your firm does not yet have a suitable revenue account for Penalty Interest:
      • Create a new revenue account either directly in Xero, or
      • Select Add GL Account in the Chart of Accounts window in OneLaw.

    If the account is created directly in Xero and does not appear in the dropdown list, select Reload GL Accounts to refresh the available accounts.

    If you are unsure which revenue account to use, consult your firm’s accountant or financial administrator.

    • Select Save & Close to confirm the mapping.
    Accounts_Firm&GL_Chart of Accounts window.png

    Result: Penalty Interest is now mapped and ready for GL export.

    Note: For detailed information about creating and managing GL accounts when using the Xero integration, refer to the Xero Integration Manual.

Important - If Penalty Interest is not mapped

If Penalty Interest is applied before a GL account is mapped, the issue will surface during batch processing:

  • When Update Batch is selected in the Batch Listing window, the system displays an error indicating missing GL coding.
  • You must use Edit GL Coding in the General Ledger Export tab.
  • Assign the correct GL account to each Penalty Interest line.
  • Export cannot proceed until all coding issues are resolved.

Note

  • The Edit GL Coding and Export to GL options are not available until Update Batch has been selected.
  • Manual recoding applies only to the current batch. Future batches will continue to generate errors until Penalty Interest is correctly mapped in the Chart of Accounts.

To avoid disruption during batch processing, ensure Penalty Interest is mapped to a GL account before users begin applying it to ARs.

 

Result

When Penalty Interest is correctly mapped:

  • Penalty Interest exports to Xero as a separate invoice line within the GL batch.
  • The Accounts Receivable control account is debited.
  • The mapped revenue account is credited.
  • The transaction exports as GST-exempt income.

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