Linnworks Xero Integration: Step-by-Step Setup Guide (2026)

Linnworks is one of the most widely adopted order management platforms in the UK and among cross-border eCommerce sellers — the same markets where Xero holds dominant accounting market share. The combination is common: Linnworks centralises orders from Amazon UK, Amazon EU, eBay, Shopify, and your own website; Xero handles the books. The problem is that Linnworks and Xero do not connect natively. Every channel you sell on settles on its own schedule with its own fee structure, and the net payout Xero’s bank feed sees bears no resemblance to the gross sales figure in Linnworks. Amazon’s 14-day settlement bundles referral fees, FBA charges, storage costs, and refunds into one ACH deposit. eBay Managed Payments settles every 1–2 business days after deducting final value fees and promoted listing charges. Shopify Payments deposits daily. Record those net deposits as Xero income and your P&L overstates revenue, hides every fee, and makes per-channel profitability analysis impossible. This guide covers the correct Xero account structure for Linnworks sellers, the step-by-step SyncTools connection, and how to reconcile every channel settlement in Xero automatically.

TL;DR: Linnworks has no native Xero integration. SyncTools connects Linnworks to Xero through the Linnworks App Store — automatically syncing multichannel sales orders, purchase orders, marketplace fees, refunds, and channel payouts to the correct accounts. Per-channel P&L via Xero tracking categories, grouped invoicing for high-volume stores, and automated payout reconciliation. Setup takes under 25 minutes.

Using QuickBooks Online instead of Xero? See the Linnworks QuickBooks integration guide.

Related: Linnworks accounting guide — chart of accounts, channel fee structures, multichannel payout timing, and reconciliation principles before connecting any integration.

Why Linnworks Sellers Using Xero Have an Accounting Problem

Linnworks is an order management and inventory system, not an accounting platform. It tracks stock quantities, order statuses, and channel listings excellently — but it has no general ledger, produces no financial statements, and handles no tax filings. Every Linnworks seller needs a separate accounting system, and Xero holds over 75% market share in Australia and New Zealand, more than 30% in the UK (Fifth Person, 2024), and a significant share among UK-based cross-border sellers who use Linnworks to manage Amazon EU operations.

The accounting problem Linnworks Xero sellers face has three compounding layers:

Different fee structures per channel. Amazon charges referral fees (6–15% depending on category) plus FBA pick-and-pack fees plus monthly storage fees — all reported in separate columns in the Amazon settlement report, all deducted from your payout before the money reaches your bank. eBay deducts a final value fee (typically 12.9% on most categories) before every Managed Payments deposit. Shopify and direct channels charge gateway processing fees (typically 2.9% + $0.30 or the UK/EU equivalent). Pooling all of these into a single “Marketplace Fees” account in Xero makes it structurally impossible to know whether margin compression is coming from Amazon’s FBA cost increase, eBay’s promoted listing fees, or your own gateway provider.

Different payout schedules per channel. Amazon settles every 14 days. eBay Managed Payments settles every 1–2 business days. Shopify Payments settles daily. If you record each deposit as income when it hits Xero’s bank feed rather than when the underlying orders shipped, your monthly Xero P&L is driven by payout timing rather than actual sales performance — a distortion that compounds across a five-channel Linnworks operation.

Multichannel COGS and purchase order tracking. Linnworks tracks stock quantities in real time across multiple warehouses and channels, decrementing inventory as orders fulfil. But quantity tracking does not automatically update cost of goods sold in Xero. Without syncing purchase orders from Linnworks to Xero as bills — with actual unit costs per SKU — your Xero gross margin figures are estimates, not facts.

The most common Linnworks bookkeeping failure is recording the Linnworks order total as Xero revenue without adjusting for channel fees. Amazon’s referral and FBA fees alone reduce net proceeds by 25–40% on mid-priced products — but those fees do not appear in Linnworks’s order view, only in Amazon Seller Central’s settlement reports. Recording the Linnworks order total as Xero income overstates revenue by every dollar in fees.

Related: eCommerce bookkeeping guide — accounting fundamentals every multichannel seller needs before connecting any Linnworks integration.

What Data Syncs from Linnworks to Xero

Understanding exactly what the integration moves between Linnworks and Xero is the first step to configuring it correctly.

Linnworks Data	Xero Transaction Type	Xero Account
Sales order (per channel)	Sales invoice	Revenue: [Channel] Sales
Amazon referral fee	Invoice line / journal	Direct Costs: Amazon Referral Fees
Amazon FBA fee	Invoice line / journal	Direct Costs: Amazon FBA Fees
eBay final value fee	Invoice line / journal	Direct Costs: eBay Final Value Fees
Payment gateway fee	Invoice line / journal	Direct Costs: Payment Processing
Delivered purchase order	Bill (accounts payable)	Inventory Asset (at SKU unit cost)
Refund / credit note	Xero credit note	Sales Returns and Allowances
Marketplace facilitator tax	Credit note / journal line	Current Liability: Sales Tax Payable
Channel payout deposit	Bank transaction match	[Channel] Clearing (bank type)
Source-subsource	Xero tracking category	Sales Channel tracking category

What does not sync:

• Customer email addresses and shipping history (Linnworks CRM data)
• Linnworks analytics — pick rates, despatch times, channel conversion rates
• Live stock quantity movements (COGS posts when orders fulfil; live inventory counts stay in Linnworks)
• eBay or Amazon listing data (titles, images, pricing rules)

Sync frequency: SyncTools syncs Linnworks data to Xero every few minutes automatically once you enable automatic sync — covering the gap between Linnworks order processing and Xero invoice creation without manual intervention.

Related: multi-channel inventory accounting — COGS tracking, channel-level P&L, and inventory valuation when selling across multiple Linnworks platforms.

Xero Chart of Accounts for Linnworks Sellers

Setting up the right Xero account structure before connecting SyncTools is the most important step. Retrofitting a chart of accounts after months of synced data is significantly more work than doing it correctly at the start. This setup takes under fifteen minutes in Xero and needs to happen only once.

Xero organises its P&L into Revenue, Direct Costs (gross profit section), and Expenses (below the line). Here is how Linnworks transaction types map to the correct Xero account categories:

Revenue accounts — one per active Linnworks channel:

• Amazon Sales — gross product sales from Amazon, before any fee deductions
• eBay Sales — gross product sales from eBay, before final value fees
• Shopify Sales — gross product sales from your Shopify store
• Other Channel Sales — Etsy, OnBuy, ASOS Marketplace, or any additional sources

Separate Revenue accounts per channel are not optional if you want meaningful channel-level P&Ls. Consolidating all Linnworks revenue into one income line makes per-channel profitability analysis structurally impossible.

Direct Costs accounts — one per fee type:

• Amazon FBA Fees — pick, pack, ship, and monthly storage fees
• Amazon Referral Fees — percentage-based commission per Amazon order (6–15% by category)
• eBay Final Value Fees — percentage-based fee per eBay sale (~12.9% on most categories)
• Payment Processing Fees — gateway fees for Shopify, direct website, or non-marketplace channels

In Xero, Direct Costs accounts appear in the gross profit section of your P&L — which is exactly where marketplace fees belong. Placing them in the Expenses section instead puts them below the gross profit line, inflating apparent gross margin and making your Linnworks channel economics impossible to benchmark accurately.

Current Liability:

• Sales Tax Payable — tax collected from buyers but not yet remitted. For Amazon and eBay orders in marketplace facilitator states (all US states with economic nexus laws), these platforms collect and remit sales tax directly. Map their collected tax to this liability account — it is not your income.

Contra-Revenue account:

• Sales Returns and Allowances — refunds across all Linnworks channels, recorded as Xero credit notes. Using a contra-revenue account preserves your gross revenue figure for trend analysis and makes refund rate by channel visible in Xero reports.

Clearing accounts (Bank type) — one per major channel:

• Amazon Clearing — posts all Amazon transaction components at gross value; zeroes when the 14-day settlement arrives in your bank
• eBay Clearing — same structure for eBay Managed Payments deposits
• Shopify Clearing — for Shopify Payments daily deposits

The clearing account type must be Bank in Xero — not Asset or Current Asset. Xero’s bank reconciliation workflow only enables one-click matching when the clearing account is bank-type. This is the single most common Xero-specific setup error.

Xero Tracking Categories for Linnworks Multi-Channel Sellers

Xero tracking categories are the equivalent of QuickBooks classes — they let you tag every transaction with a dimension so Xero can produce per-channel P&L reports without requiring separate Xero organisations for each sales channel.

For Linnworks sellers, the recommended tracking category setup is:

Tracking Category	Tracking Option	Applied To
Sales Channel	Amazon UK	All Amazon UK revenue and Direct Costs
Sales Channel	Amazon EU	All Amazon EU transactions
Sales Channel	eBay	All eBay transactions
Sales Channel	Shopify	All Shopify transactions
Sales Channel	Own Website	Direct channel transactions

SyncTools maps each Linnworks source and subsource to the corresponding Xero tracking category option automatically — every Amazon order gets tagged Amazon UK or Amazon EU, every eBay order gets tagged eBay, and so on. No manual tagging required after initial configuration.

With this tracking category applied, Xero’s P&L by Tracking Category report gives you channel-level revenue, Direct Costs, and gross margin side by side. This answers the questions that matter at scale:

• Is my eBay channel still profitable after the final value fee increase?
• Is my Amazon gross margin improving as I shift product mix toward lower-referral-fee categories?
• Which Linnworks channels are growing faster than their fee burden?

UK Linnworks sellers running Amazon UK and Amazon EU through a single Xero organisation particularly benefit from tracking categories: without them, it is impossible to separate the VAT implications of UK domestic sales from the import/export VAT treatment on EU transactions. Tracking categories make the separation visible in Xero reports and simplify the preparation of EC Sales Lists and VAT returns for cross-border trade.

Related: Xero eCommerce accounting guide — how to structure Xero for multi-channel eCommerce with clean P&L, tracking categories, and payout reconciliation.

Step-by-Step: Setting Up SyncTools for Linnworks → Xero

Before you start, confirm you have:

• An active Linnworks account with at least one connected sales channel
• A Xero account (Growing plan or higher recommended; Starter plan has invoice limits)
• Access to install apps in Linnworks (admin-level access required)
• Admin access to the Xero organisation you want to connect

Step 1 — Set Up Your Xero Chart of Accounts and Tracking Category

Create the accounts listed above in Xero before connecting SyncTools. Go to Accounting → Chart of Accounts → Add Account and add each account with the correct type.

Three accounts require specific Xero type settings that sellers commonly get wrong:

1. Clearing accounts must be Bank type — not Other Current Asset. Open Xero → Chart of Accounts → Add Account → Type: Bank. This enables Xero’s bank reconciliation matching for channel settlements.
2. Direct Costs for marketplace fees — not Expenses. In Xero’s account type dropdown, select Direct Costs (not Expense). This places fees above the gross profit line in your P&L.
3. Sales Tax Payable as Current Liability — not Revenue. Marketplace-collected tax is not your income.

After creating accounts, set up your tracking category: go to Accounting → Chart of Accounts → Tracking (or Accounting Settings → Tracking Categories in Xero’s new menu), add a category called Sales Channel, and create one option per active Linnworks source.

Step 2 — Install SyncTools from the Linnworks App Store

Direct sign-up on the SyncTools website is not available for the Linnworks integration. Installation must go through Linnworks.

1. In Linnworks, navigate to Apps → App Store
2. Search for Xero connector (look for developer name SyncTools.io)
3. Click Read More then Install
4. Accept the Third Party Integrations Disclaimer
5. Click Next → Install

A confirmation email arrives at the email address registered in your Linnworks account. A second email contains your SyncTools username and password. If your Linnworks account uses a team member’s email, have them forward both emails to you.

Log into SyncTools at system.synctools.io using the credentials from the second email.

Step 3 — Connect Xero to SyncTools

In SyncTools:

1. Go to Settings → Connections
2. Click the Xero icon and click Connect
3. Complete Xero’s OAuth authorization — choose the correct Xero organisation if you manage multiple (SyncTools connects to exactly one organisation per account)
4. SyncTools reads your chart of accounts, tracking categories, tax rates, and bank accounts, then pre-fills a recommended mapping table

The authorization takes about 30 seconds. Important: before enabling automatic sync, keep the automatic sync toggle OFF while you test manually. SyncTools recommends testing a few orders before enabling automatic sync to prevent configuration back-and-forth.

Step 4 — Map Linnworks Channels and Transaction Types to Xero

In the SyncTools configuration screen (click Configuration in the dashboard), work through each module:

Module 2 — Item configuration:

• Set the default sales account (the Revenue account for channel sales)
• Set the default purchase account for purchase order line items
• Set the default shipping account

Module 3 — Sales configuration:

• Enable sync for Paid orders; optionally enable Unpaid orders
• For unpaid orders, choose Xero invoice status: Awaiting Payment, Awaiting Approval, or Draft
• Set invoice date to Received date or Processed date
• Set whether to use Linnworks order ID or Xero-generated invoice numbers
• Configure the source/subsource filter to control which Linnworks channels sync

Tracking category mapping:

• In the source-wise configuration, map each Linnworks source to its Xero tracking category option (Amazon UK → Sales Channel: Amazon UK, eBay → Sales Channel: eBay, etc.)
• This is the step that enables per-channel P&L in Xero

Module 5 — Payment configuration:

• Enable Create Payment for Invoice if you want paid orders to post as paid Xero invoices with payment date and reference
• Map each Linnworks payment method to the corresponding Xero bank account (Amazon Clearing, eBay Clearing, etc.)

Module 6 — Tax configuration:

• Set the default sales tax rate for marketplace facilitator tax to a rate that maps to your Sales Tax Payable liability — not Xero’s standard output tax rate
• For UK VAT-registered sellers, configure advance tax settings by source to apply the correct Xero tax code per transaction type (Standard Rate for domestic UK, Zero Rate or Out of Scope for US or export transactions)

Module 7 — Refund configuration:

• Enable refund sync to create Xero credit notes automatically when Linnworks refunds occur
• Set the refund account (Sales Returns and Allowances) and credit note status

Step 5 — Configure Invoice Grouping and Run First Sync

Invoice grouping decision:

• Individual invoice sync — one Xero invoice per Linnworks order. Maximum granularity. Recommended for stores processing fewer than 200 orders per day.
• Grouped invoice sync — one summarized daily invoice per channel source. Recommended for stores processing more than 6,000 orders per month. Prevents hitting Xero’s invoice limits on lower plans and keeps accounts receivable clean.

Grouping options available: by source, by source + subsource, by source + country, or by source + subsource + country. Contact SyncTools support before configuring advanced grouping combinations.

Click Sync Now (or go to Sync Log → Download → select Sales → Retry Upload to test manually). After the first sync:

1. In Xero, verify each channel’s gross sales appear in the correct Revenue account
2. Confirm the correct tracking category is applied to each invoice
3. Check that each fee type appears as a separate Direct Costs line
4. Verify Sales Tax Payable reflects marketplace-collected tax, not income
5. Confirm clearing account balances match your next expected channel settlement amounts

After verifying, go to Settings → Connections and toggle automatic sync ON.

How Channel Payout Reconciliation Works in Xero

The clearing account structure is what makes Linnworks–Xero payout reconciliation a one-click operation rather than a manual monthly exercise. Here is the concrete mechanics using an Amazon 14-day settlement as the example.

Concrete example — Amazon UK 14-day settlement:

Your Amazon UK store earns £6,000 in gross sales during the settlement period. Amazon deducts:

• £720 in referral fees (12% average across categories)
• £540 in FBA pick, pack, and ship fees
• £90 in FBA storage fees
• £120 in refunds processed during the period

Net Amazon settlement deposit: £4,530

What SyncTools posts to Xero as orders and fees occur:

Entry	Debit	Credit
Gross sales (£6,000)	Amazon Clearing	Amazon Sales (Revenue)
Referral fees (£720)	Direct Costs: Amazon Referral Fees	Amazon Clearing
FBA fees (£540)	Direct Costs: Amazon FBA Fees	Amazon Clearing
Storage fees (£90)	Direct Costs: Amazon FBA Fees	Amazon Clearing
Refunds (£120)	Sales Returns and Allowances	Amazon Clearing

Amazon Clearing account balance: £4,530

In Xero’s bank feed: When the £4,530 Amazon deposit appears, Xero presents the match against the Amazon Clearing balance. You click OK — Xero debits your operating bank account and credits Amazon Clearing, which zeroes out. Reconciliation complete.

Your Xero P&L shows:

• Revenue: £6,000 gross Amazon sales (£120 contra refund, net £5,880)
• Direct Costs: £1,350 Amazon fees (broken out by category)
• Gross contribution from Amazon: £4,530

Without automation, you would need to download the Amazon settlement report from Seller Central, extract each fee line, create Xero invoices and credit notes manually, split the bank transaction, and match it — for every 14-day Amazon settlement cycle, then repeat for eBay and Shopify separately.

A timing nuance worth knowing: Amazon FBA monthly storage fees are invoiced at the start of the following month but apply to the prior month’s inventory. SyncTools uses the service date rather than the invoice date to post storage fees — so your March FBA storage costs appear in March’s Xero P&L, not April’s. This prevents the common error of seeing higher-than-expected costs in April (when the storage invoice arrives) and lower-than-expected costs in March (when the service actually occurred).

Related: automated reconciliation for eCommerce — how to eliminate manual payout reconciliation across all Linnworks channels.

Grouped Invoice Sync for High-Volume Linnworks Sellers

For Linnworks sellers processing thousands of orders per month, individual invoice sync creates volume in Xero that can hit platform limits and slow performance. Xero’s Growing plan supports unlimited invoices, but high invoice volumes still create noise in accounts receivable and slow down reconciliation audits.

SyncTools’ grouped invoice sync consolidates all Linnworks orders for a given source into one summarized daily invoice in Xero. The grouped invoice carries the channel name as the contact (e.g., “Amazon UK — Daily Summary”) and contains summarized line items for gross sales, shipping, and any applicable tax — without losing transaction-level detail in Linnworks itself.

Grouping thresholds and options:

Store Order Volume	Recommended Sync Mode
Under 200 orders/day	Individual invoice sync
200–400 orders/day	Grouped by source (daily)
400+ orders/day	Grouped by source + subsource (daily)
Complex multi-region	Grouped by source + subsource + country

SyncTools also supports weekly and monthly grouping for sellers whose accountants prefer period-level posting.

Important: SyncTools recommends contacting the support team before configuring multi-layer grouping (source + subsource + country) to avoid configuration errors that require manual correction. The team provides assisted setup at no additional cost.

Sales Tax and VAT Handling for Linnworks Sellers Using Xero

Linnworks multichannel sellers face distinct sales tax scenarios depending on which channels they sell through and which countries they trade in.

Marketplace Facilitator Tax (Amazon, eBay — US States)

Amazon and eBay are marketplace facilitators for sales tax in all US states that have economic nexus laws. They collect and remit sales tax on eligible transactions directly to state tax authorities. The tax appears in your Linnworks order data and settlement reports — but it is not your revenue and creates no remittance obligation for you.

In Xero, create a tax rate called “Marketplace Facilitator Tax” or “MF Tax” mapped to your Sales Tax Payable current liability account. Set this rate to not appear on tax returns (since eBay or Amazon already remitted it). SyncTools applies this rate to marketplace-collected tax lines, keeping them out of your Xero income and off your tax return.

Do not use Xero’s built-in US Sales Tax or BAS/GST output tax rates for marketplace facilitator tax — Xero’s standard rates will add the collected tax to your return as output tax you owe, creating a false liability.

UK VAT for Linnworks Sellers

For UK VAT-registered Linnworks sellers, the configuration is more nuanced:

• Amazon UK domestic sales — Standard Rate (20%) VAT on UK B2C sales
• Amazon EU sales post-Brexit — Amazon is the deemed supplier for UK-based sellers on Amazon EU, so these transactions are typically outside the scope of UK VAT. Map to an Out of Scope or No VAT Xero tax code.
• eBay UK sales — Standard Rate (20%) on UK B2C; eBay handles OSS/IOSS for EU consumer sales
• Own website sales (EU consumers) — if you’re registered for OSS, map to the correct Xero tax code per country. SyncTools applies the Linnworks tax rate to the Xero line item — confirm your Linnworks tax rates match your Xero tax code configuration.

For VAT-registered UK sellers using Xero’s MTD VAT filing, SyncTools maps Linnworks transaction types to the correct Xero tax codes so your Xero VAT return (Box 6, Box 7, etc.) pulls accurate data without manual adjustment.

Australian and New Zealand GST

Xero is the dominant accounting platform in Australia and New Zealand, where many Linnworks sellers operate. For AU/NZ-registered entities:

• GST applies to domestic Australian and New Zealand sales; foreign sales are typically GST-free
• Xero tracks GST via its BAS/GST return automatically when the correct Xero tax codes are applied
• SyncTools maps domestic vs. export transactions to the appropriate Xero tax code using Linnworks’s delivery country data

Related: Xero eCommerce accounting guide — full Xero tax configuration for eCommerce sellers across UK, AU, NZ, and US markets.

Common Linnworks Xero Setup Mistakes

Most Linnworks–Xero integration problems trace back to five setup errors. These apply specifically to Xero’s account type structure and the Linnworks App Store installation path.

Mistake 1 — Skipping Linnworks App Store and trying to sign up directly

The SyncTools Xero connector for Linnworks is only available through the Linnworks App Store. Direct sign-up on the SyncTools website creates a standalone SyncTools account not linked to your Linnworks data. If this happens, contact SyncTools support to merge or reinstall correctly.

Mistake 2 — Creating clearing accounts as Asset type instead of Bank type

Xero’s bank reconciliation workflow — the one that lets you click OK to match a channel deposit against your clearing balance — only works when the clearing account is Bank type. If you create Amazon Clearing as an Other Current Asset or a regular asset account, Xero’s bank reconciliation screen will not offer the match. You will need to manually journal every settlement. Re-create the account as Bank type before running your first sync.

Mistake 3 — Using Expense-type accounts for marketplace fees instead of Direct Costs

Xero’s P&L is structured as Revenue → Direct Costs → Gross Profit → Expenses → Net Profit. Marketplace fees (Amazon referral fees, FBA fees, eBay final value fees) are platform selling costs that should appear in the gross profit section. Putting them in Expenses inflates your gross margin and hides the true economics of each Linnworks channel. The distinction matters for benchmarking gross margin against industry averages and for identifying which channel’s fee structure is compressing profit.

Mistake 4 — Mapping marketplace facilitator tax to Xero’s standard output tax rate

Xero’s built-in tax rates (GST, VAT, US Sales Tax) populate tax returns as output tax. Mapping Walmart-collected or Amazon-collected marketplace facilitator tax to these rates will add already-remitted tax to your Xero return as output tax you owe — a liability that does not exist. Create a dedicated marketplace facilitator tax rate in Xero, set it to map to Sales Tax Payable (liability), and configure it to not appear on tax returns.

Mistake 5 — Enabling automatic sync before testing manually

SyncTools processes the first sync against all your account mapping decisions. If a mapping is wrong, every synced transaction goes to the wrong account. Always test 5–10 orders manually using the Sync Log → Download → Retry Upload workflow before enabling automatic sync. Catching a wrong Direct Costs mapping during testing takes five minutes. Discovering it after three months of synced data requires corrective journal entries across every prior period.

Related: best eCommerce accounting software — comparison of accounting tools for multichannel sellers at different scale points.

Linnworks Xero vs. Linnworks QuickBooks: Which Integration Is Right for You?

Both integrations use SyncTools and follow the same clearing-account reconciliation model. The right choice depends on your accountant’s platform and your geographic market.

Dimension	Xero	QuickBooks Online
Dominant market	UK, Australia, New Zealand	United States, Canada
Per-channel reporting	Tracking categories	Classes
Invoice limits (entry plan)	Starter: limited; Growing: unlimited	Simple Start: limited; Essentials+: unlimited
VAT/GST filing	Native Xero VAT returns and BAS	Limited; US sales tax focus
Multi-currency	Established plan required	Advanced plan required
Bank reconciliation	Excellent (bank feeds, rules)	Strong (bank feeds, rules)
Linnworks integration path	Linnworks App Store → SyncTools	Linnworks App Store → SyncTools

For UK and Australian Linnworks sellers: Xero is the standard choice, and your accountant is almost certainly Xero-certified. For US-based Linnworks sellers managing primarily Amazon US and Shopify US: QuickBooks Online is more common.

If you manage both a UK entity on Xero and a US entity on QuickBooks, SyncTools can connect separate Linnworks accounts to separate accounting platforms — contact the SyncTools team for multi-entity configuration.

Frequently Asked Questions

Does Linnworks integrate with Xero?

Yes. Linnworks integrates with Xero via SyncTools, installed through the Linnworks App Store (Linnworks → Apps → App Store → search “Xero connector”). SyncTools automatically syncs Linnworks sales orders, purchase orders, marketplace fees, refunds, and multichannel payouts into the correct Xero accounts without manual CSV exports or spreadsheet journals. Setup takes under 25 minutes.

How do I connect Linnworks to Xero?

Install the SyncTools Xero connector from Linnworks → Apps → App Store (developer name: SyncTools.io). After installation, log into SyncTools at system.synctools.io, go to Settings → Connections, click the Xero icon, and complete the OAuth flow. Map each Linnworks source and transaction type to the correct Xero account and tracking category, then click Sync Now to test before enabling automatic sync.

Why does SyncTools need to be installed from the Linnworks App Store?

Linnworks uses App Store installation to link your Linnworks account credentials to SyncTools automatically. Direct website sign-up creates a disconnected SyncTools account with no Linnworks data access. The App Store installation is the only path that correctly establishes the Linnworks–SyncTools data connection.

What Linnworks fees sync to Xero?

SyncTools syncs all major Linnworks channel fee types to separate Xero Direct Costs accounts: Amazon referral fees (6–15% by category), Amazon FBA pick/pack/ship fees, Amazon monthly storage fees, eBay final value fees (~12.9%), and payment gateway processing fees for Shopify and direct channels. Each fee maps to its own account — not a single “Marketplace Fees” catch-all — so your Xero P&L shows the cost structure of each channel separately.

How does Linnworks payout reconciliation work in Xero?

SyncTools posts every Linnworks sales order, fee, and refund to a bank-type clearing account in Xero for the corresponding channel as transactions occur — at gross value. When Amazon, eBay, or Shopify deposits the net settlement to your operating bank account, Xero’s bank feed presents the deposit for matching against the clearing account balance. Because SyncTools has already posted the gross and contra-entries, the clearing account balance equals the net deposit exactly. One-click reconciliation — no manual journals.

Does SyncTools sync Linnworks purchase orders to Xero?

Yes. SyncTools syncs delivered purchase orders from Linnworks as bills in Xero, with each line item mapped to the correct inventory asset account at the actual unit cost recorded on the PO. When orders ship, SyncTools posts the corresponding COGS entry at the SKU purchase cost — giving you accurate gross margin figures in Xero rather than estimates.

Which Xero plan do I need for the Linnworks integration?

The Xero Growing plan or higher is recommended for Linnworks sellers. The Starter plan limits invoices and bills to a fixed number per month — a constraint Linnworks sellers hit quickly, especially at medium order volumes. The Established plan is required for multi-currency support, which matters for UK sellers managing Amazon EU alongside Amazon UK in one Xero organisation. SyncTools works on all Xero plans; the invoice limit is Xero’s, not the integration’s.

Can SyncTools backfill historical Linnworks data into Xero?

Yes. SyncTools supports historical backfill of Linnworks transaction data on Standard and Plus plans — useful when migrating from manual bookkeeping or switching from a different sync tool mid-year. Historical transactions follow the same account mapping as live sync. Contact SyncTools support to configure the backfill start date.

Connect Linnworks to Xero — and Stop Reconciling Manually

Every channel settlement you manage manually in Xero is a recurring bookkeeping task. A 25-minute integration setup eliminates it entirely. The clearing-account structure does the work: SyncTools posts gross Linnworks sales to revenue, channel fees to Direct Costs, refunds as credit notes, and payout deposits reconcile to your Xero bank feed in one click per settlement cycle.

The setup principles are straightforward. Build your Xero account structure first — clearing accounts as Bank type, marketplace fees as Direct Costs, tax as Current Liability, tracking categories per channel. Install SyncTools from the Linnworks App Store. Connect Xero via OAuth. Map each source and transaction type. Test manually before enabling automatic sync. After that, SyncTools handles every channel settlement automatically — Linnworks orders post to Xero, fees land in the right accounts, and your per-channel P&L is always current.

Start your free SyncTools trial — installation from the Linnworks App Store takes under five minutes. Full configuration is typically complete within 25 minutes.

Integration pages:

• Linnworks Xero Integration — feature overview, sync options, plan details, and data flow diagram
• Linnworks QuickBooks Online Integration — for Linnworks sellers using QuickBooks instead of Xero

Related guides:

• Linnworks accounting guide — chart of accounts, channel fee structures, payout timing, and multichannel reconciliation principles for Linnworks sellers
• Linnworks QuickBooks integration — step-by-step setup for Linnworks sellers using QuickBooks Online instead of Xero
• Xero eCommerce accounting guide — how to structure Xero for multi-channel eCommerce with tracking categories, bank feeds, and clean reconciliation
• multi-channel inventory accounting — COGS tracking, channel-level P&L, and inventory valuation across multiple Linnworks platforms
• Amazon Xero integration — deep dive on Amazon-specific fee accounting and settlement reconciliation for Xero users
• eBay Xero integration — eBay Managed Payments reconciliation in Xero for Linnworks sellers who also manage eBay directly
• automated reconciliation for eCommerce — how to eliminate manual payout reconciliation across all marketplace channels
• eCommerce bookkeeping guide — accounting fundamentals every multichannel seller needs before connecting any integration
• Xero Power BI connector — sync Xero data to a database and connect Power BI, Tableau, or any BI tool for cross-channel dashboards beyond Xero’s built-in reports
• NetSuite Power BI connector — for enterprise Linnworks operations on NetSuite, sync to a SQL database and connect Power BI without a SuiteAnalytics Connect license
• Dynamics 365 Business Central Power BI connector — sync D365 BC data to your database and avoid OData throttling on large transaction histories