If you're utilising Product Groups within Link My Books to categorise different types of products, you can enhance your financial analysis by assigning a specific Xero tracking option to each group. This allows you to easily track and analyse the performance of individual product groups directly in Xero.
IMPORTANT: UK VAT Configuration Conflict
If your Link My Books account is configured to handle a mixture of Standard, Zero, and Reduced-rated items for UK VAT, you will not be able to use this feature to assign Xero tracking options to product groups. This is because your product groups are already specifically designated within Link My Books for the allocation of correct UK VAT rates to your products.
How to Assign Tracking Options to Product Groups
Follow these steps to assign a Xero tracking option to your product groups:
Enable Product Grouping:
Navigate to Settings > Settlement Settings > Transaction Grouping. Ensure 'Product Grouping' is turned on.
Go to Product Groups:
From the Link My Books main menu, go to Inventory > Product Groups, then click on the 'Product Groups' tab. (Placeholder for Screenshot: Navigation to Inventory > Product Groups tab.
Select a Product Group:
For the specific product group you wish to assign a tracking option to, click the 'Action' dropdown menu next to its name.
Assign Tracking Code:
From the options that appear, select 'Assign Tracking Code'.
Choose a Tracking Option:
A dialog box will appear. Select the Xero Tracking Code (and its option, if applicable) you wish to apply to this product group from the available list. Then, click 'Save' or 'Apply' to confirm your selection.
How Xero Tracking Options Work with Product Groups
Once a tracking option has been successfully assigned to a product group, all future settlements sent from Link My Books to Xero will automatically have that chosen tracking option applied to any transaction lines associated with that product group.
This integration allows for powerful reporting in Xero. When you run a Profit & Loss report (or other relevant reports) in Xero, you can then choose to filter or compare by tracking categories. This enables you to see your product group revenue and expenses broken down in detail, providing granular insights into each group's performance.
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