Creating Shipping and Insurance Items in Xero

When integrating eCommerce systems with Xero most often you need to create a Shipping Item and an Insurance Item. These Items are used to map sold Shipping and Insurance from your eCommerce system into your Sale (Accounts Receivable) in Xero.

Shipping and Insurance Items are mandatory for most of the eCommerce integrations so it’s best to do this before you start the integrations.

1. Sign in to your Xero account 
   
2. Navigate to Settings > Inventory Items
    
3. Select Add Item to add a new Item 
   
4. Enter an Item Code (e.g. SHIPPING) and a Description and select an (Income) Account and a Tax Rate. 
    
5. Save the item
6. Do the same for an Insurance Item if you provide Insurance for your eCommerce sales.
7. You can now configure your eCommerce connection to use this Item (Product) for the shipping costs:
   
   (sample eCommerce configuration)