1) What this change is (in plain English)
You can now apply two Xero tracking codes to every settlement we send for a given marketplace (e.g., Amazon UK, Shopify). This lets you report in Xero across two dimensions at the same time—for example Market × Region or Market × Channel.
Previously: 1 tracking code per marketplace
Now: Up to 2 tracking codes per marketplace (the second one is optional)
2) Why it’s useful
Better reporting: Split results by two views (e.g., Market and Region) on the same P&L.
Flexible: Use 0, 1, or 2 codes—whatever suits your setup.
No disruption: Your current “Tracking Code 1” stays as-is unless you change it.
3) Requirements (read this first)
You must have at least two tracking categories in Xero (each with options).
Xero limitation: Your two codes must come from different Xero categories.
✅ Valid: LMB Marketplaces → UK and Region → Europe
❌ Invalid: LMB Marketplaces → UK and LMB Marketplaces → DE (same category twice)
ℹ️ In Xero, you can only use one option per category per line item.
4) Where to set it up in Link My Books
Settings → Settlement Settings → Tracking Codes → Update Settings
You’ll see for each marketplace:
Tracking Code 1 – your primary category (usually what you already use)
Tracking Code 2 – an optional secondary category (or set to None)
Each dropdown includes None and all the available Xero tracking categories/options we can see.
5) Step-by-step setup (2 minutes)
In Xero, confirm you have two different tracking categories (e.g., LMB Marketplaces and Region).
In Link My Books, go to Settings → Settlement Settings → Tracking Codes → Update Settings.
For each marketplace:
Pick Tracking Code 1 from Category A (e.g., LMB Marketplaces → UK).
Pick Tracking Code 2 from Category B (e.g., Region → Europe) or leave as None.
Click Update to save.
Note: If you use automatic tracking (e.g., WooCommerce/Square locations), that overrides manual Tracking Code 2.
6) How it works behind the scenes
Applies to all lines: Both tracking codes are applied to every line item of settlements for that marketplace.
Optionality: Tracking Code 2 can be None—you don’t have to use it.
Automatic vs manual: If automatic tracking is enabled for your source (e.g., WooCommerce/Square locations), it takes priority over manual Tracking Code 2.
Scope: Affects new or unsent settlements only. Already sent invoices/bills in Xero are not changed.
7) Examples you can copy
Market × Region
Code 1: LMB Marketplaces → UK
Code 2: Region → Europe
Market × Sales Channel
Code 1: LMB Marketplaces → DE
Code 2: Channel → D2C
8) FAQs
Q: Will this change my current setup?
A: No. Your existing tracking remains as Tracking Code 1 until you choose to add Code 2.
Q: Do I have to use Tracking Code 2?
A: No. It’s optional—leave it as None if you don’t need it.
Q: We use automatic location tracking (WooCommerce/Square). What happens?
A: Automatic tracking overrides manual Tracking Code 2.
Q: Does this update past invoices already sent to Xero?
A: No. It only applies to unsent settlements and new invoices going forward.
Q: I’ve added Tracking Code 2 but it isn’t showing on an invoice that’s already in Xero. Why not?
A: Tracking codes are applied at the moment we post a settlement to Xero, so any invoice already sent keeps the codes it had at that time. Adding Code 2 afterwards won’t change it. New settlements will carry both codes automatically. If you need the earlier invoices corrected, roll those settlements back and resend them and they will post with both codes applied.
Q: We’re getting a “tracking code” error when sending. What should we check?
A: Ensure Code 1 and Code 2 come from different Xero categories. Using two options from the same category will be rejected by Xero.
9) Troubleshooting checklist
Error mentions tracking codes:
Confirm different Xero categories for Code 1 vs Code 2.
Try setting Code 2 to None and resend to isolate the issue.
Second tracking code is blank on an invoice in Xero:
Check when the settlement posted. Anything sent before you saved Code 2 will keep its original tracking codes.
Find your most recent posting to compare. In Xero, search your invoices for the LMB reference prefix for that channel (for example LMB-tiktok or LMB-shopify) and open the newest one. If Code 2 is filled in there, the setting is working and only the earlier invoices are affected.
To correct earlier invoices, roll the settlement back in Link My Books and resend it.
If a settlement that posted after you saved Code 2 is still missing it, contact support so we can investigate.
Unexpected codes on invoices:
Check if automatic tracking is enabled for that source (it overrides Code 2).
Don’t see your categories/options in LMB:
Refresh your Xero connection or verify the categories/options exist and are active in Xero.
10) Good to know
You can mix and match per marketplace (e.g., use two codes on Amazon, one code on Shopify).
You can change tracking selections any time; changes apply to future/unsent settlements.
Best practice: Keep Code 1 as your primary structure (e.g., Market) and use Code 2 for analysis layers (e.g., Region/Channel).