Purchasing a New Hire Item and Creating a Matching Fixed Asset in Xero - Using HirePOS Purchase Orders

This guide outlines the simplest workflow for:

• Ordering a new hire item in HirePOS

• Adding that item to your HirePOS inventory

• Exporting the purchase to Xero

• Creating a corresponding fixed asset in Xero for depreciation

There is no direct link between HirePOS items and Xero fixed assets, so this process ensures both systems stay aligned with minimal double handling.

1. Go to Purchasing > Purchase Orders

2. Click New Purchase Order

3. Select your supplier

4. Add the item being purchased:

   • Use a clear description (this will flow through to Xero)

   • Enter quantity and cost

5. Save the purchase order

6. Send the PO to your supplier

At this stage:

• The PO is for ordering only

• No accounting impact has occurred yet

This is a separate step and is not automatically created from the PO.

1. Go to Setup > Items

2. Create a new item:

   • Assign a unique item code

   • Set pricing, categories, and hire settings as required

3. Save the item

This ensures:

• The item is available for hire immediately

• Your operational system is ready before or as stock arrives

Once the supplier delivers the goods:

1. Open the original purchase order

2. Enter the Date Received

3. Confirm quantities received

4. Save the PO

This step:

• Finalises the purchase in HirePOS

• Prepares it for export to Xero

1. Export the purchase order using your Xero integration/export process

2. This will create a Bill in Xero

Key point:

• The PO becomes a Bill in Xero, which is what drives the accounting and asset creation workflow

Once the bill exists in Xero, complete the asset setup.

1. Open the Bill created from the HirePOS export

2. Ensure the line is coded to the correct fixed asset account (for example, Plant & Equipment)

Then:

3. Go to Accounting > Fixed Assets

4. Create a New Asset

   • Enter asset name (match your HirePOS item where possible)

   • Enter purchase date and cost (from the bill)

   • Select the appropriate asset type (for depreciation rules)

Optional but recommended:

• Attach or reference the bill to the asset for audit purposes

• No automatic link exists between:

  • HirePOS items and Xero fixed assets

  • Purchase Orders and the Fixed Asset Register

• The connection is maintained through:

  • Consistent naming

  • Matching values (cost, date)

  • Referencing the Xero bill

To keep this process efficient:

• Use clear, consistent item names and descriptions in HirePOS

• Let the PO description flow through to Xero via the bill

• Avoid retyping values, rely on the exported bill where possible

• Create the fixed asset from the bill details, not from scratch

For more detail on the Xero side:

• Fixed Assets overview:
  https://central.xero.com/s/article/About-fixed-assets

• Create a fixed asset:
  https://central.xero.com/s/article/Add-a-fixed-asset

• Working with bills:
  https://central.xero.com/s/article/Add-edit-or-delete-a-bill

• HirePOS handles:

  • Ordering (PO)

  • Receiving stock

  • Creating hire items

• Xero handles:

  • Financial record (bill)

  • Fixed asset register

  • Depreciation

This separation keeps each system focused on what it does best, while still allowing a clean, traceable workflow from purchase through to asset tracking.