Unleashed vs Xero Inventory: When Xero's Tracked Inventory Is Enough

Where Logistify AI fits

Logistify works alongside Unleashed. It is a managed service, not an inventory system, and it doesn't replace Unleashed, Cin7 Core, Katana or Xero. With Unleashed, the Sales Order Service enters customer orders that arrive by email, PDF, Excel, EDI, WhatsApp, SMS, voicemail or paper as sales orders, creates sales quotes for quote requests, and replies to the buyer with the quantity available on each line. The Procurement Service follows up with suppliers on open purchase orders. The Accounts Receivable Service matches payments from your bank file to open invoices and records them in Xero or QuickBooks Online, whichever you use. Logistify operates in every region where Unleashed is sold.

• It doesn't do stocktakes, stock adjustments, warehouse transfers or assemblies in Unleashed, and it doesn't create, receipt or return purchase orders.
• It doesn't choose a warehouse or set batch numbers, serial numbers, bins or units of measure on orders.
• It doesn't chase customers for payment.
• It doesn't adjust stock in Xero's tracked inventory.

Side by side

When is Xero's tracked inventory enough?

Xero's help center says tracked inventory suits businesses that sell through invoices only, use the weighted average cost method, buy and sell finished goods, and may sometimes run negative stock. In that setup, Xero records quantity on hand and value for each tracked item, moves cost of goods sold when you sell, and records a backorder when you invoice more than you have. If you buy finished goods, sell them on invoices, and track no more than 4,000 items, you may not need a separate inventory system at all.

When do you need Unleashed?

Xero lists the cases where it says tracked inventory isn't suitable: more than 4,000 items to track, orders and payments through an online store, purchase order receipting, periodic inventory, manufacturing or assembling goods from components, or a costing method other than average cost, such as FIFO. Those are the jobs Unleashed is built for: purchase orders with receipts and landed costs, multiple warehouses, batch and serial tracking, stock counts, assemblies, and sales orders with allocations and backorders.

Can you use both at the same time?

Xero says it doesn't recommend using a third-party inventory app alongside Xero Inventory. With Unleashed, the stock is kept in Unleashed and the accounting goes to Xero. Unleashed's help center says the integration is one way: transactions flow from Unleashed to Xero, and edits made in Xero don't come back. Products aren't kept as separate items in Xero; their details travel on each transaction line. Each Unleashed account connects to one Xero organization. Before you connect, Unleashed asks you to make the Stock On Hand balance in Xero match the value in Unleashed's Stock On Hand Enquiry.

Why don't the stock values match after switching?

Unleashed's help center lists the usual causes: balances that didn't match when the integration started, transactions deleted or journals added or edited directly in Xero, draft journals not yet approved in Xero, and exports that failed. It recommends checking balances across both systems regularly.

Who should choose which

• Stay on Xero's tracked inventory if you buy and sell finished goods on invoices, track no more than 4,000 items, and use weighted average cost.
• Move to Unleashed if you assemble or manufacture, or need purchase order receipts and landed costs. Also look at Unleashed if you need features Xero's tracked inventory articles don't mention, such as multiple warehouses or batch and expiry tracking.
• Move to Unleashed if you sell through an online store as well as on account.
• If you move, plan the opening stock values with your accountant so Xero and Unleashed start from the same balance.