Mapping and managing R&D expenditure from Xero

1. Overview

Once Xero is connected, you can map payroll and expense data inside Synnch to track R&D expenditure accurately.

This process takes place in the Expenditure Workspace (EWS) and involves:

• Mapping employees
• Mapping expense accounts
• Choosing allocation methods
• Applying apportionment logic

Proper configuration ensures expenditure aligns with recorded projects, activities and time entries.

2. Before You Begin

Ensure:

• Xero payroll is enabled (if mapping salaries)
• At least one pay run exists in the current financial year
• Relevant expense data exists in the current financial year
• At least one project has been created in Synnch

Without payroll or expense data, mapping options may not appear.

3. Access the Expenditure Workspace

1. Log into Synnch
2. Navigate to Company Menu → Expenditure Workspace
3. If required, confirm your Xero connection

You will now see employee and expense mapping panels.

4. Step 1: Mapping Employees

Synnch imports employee data from Xero payroll.

For each employee contributing to R&D:

1. Review the imported employee
2. Map them to an existing Synnch team member (if applicable)
3. Assign permission level:
   • Team Member (can log in and record time)
   • Staff Member (used for cost tracking only)

Employees must have:

• A base rate or annual salary
• At least one payroll entry in the current financial year

If payroll is missing, employee mapping will not function correctly.

5. Step 2: Mapping Expense Accounts

Next, select relevant expense accounts from your Xero Profit & Loss.

You can choose accounts related to:

• Contractors
• Materials
• Software subscriptions
• Utilities
• Other project-related costs

Important:

If payroll is already mapped through employees, do not remap wage-related accounts again under P&L.

6. Allocation Methods

Once mapped, expenses can be distributed across projects using different methods:

• Hours-based allocation

  Distributes expenditure based on recorded R&D time.

• Even split

  Divides cost evenly across selected projects.

• Manual allocation

  Allows custom distribution by value.

The appropriate method depends on how costs relate to project activities.

7. Apportionment Methods

Apportionment determines the eligible R&D portion of an expense.

Common methods include:

• Hours ratio (R&D hours vs total hours)
• Floor space (for rent/utilities)
• Manual percentage (with documented justification)

All manual apportionment should be supportable with evidence.

8. Ongoing Management

You can:

• Re-map employees if team structure changes
• Adjust expense account selections
• Re-sync data if new payroll or expense entries are added

Configuration can be updated at any time without losing historical data.

9. Next Step

After mapping and allocation are configured, proceed to:

Syncing and troubleshooting the Xero integration

This ensures your data remains up to date and correctly aligned.