---
title: "Connecting to an Accounting System"
source_url: https://support.lucanet.cloud/en/documentation/xp-a---extended-planning-and-analysis/integrating-data/connecting-to-a-data-source/connecting-to-accounting-erp
language: en
last_updated: 2023-08-16
---
# Connecting to an Accounting System

## Overview

You can establish a direct data connection to an accounting system to pull in accounting data into xP&A.

The following applies:

- All integrations with accounting systems are established using **Merge**, a third-party platform that enables (API) integrations with different systems.
- In order to set up the integration, you must follow individual authentication procedures to link to your accounting system account with xP&A.
- Independent of the system, there is a set of default fields (variables and dimensions) that are pulled in.

## Supported Accounting Systems

Currently, xP&A supports connections to the following accounting systems:

- **QuickBooks**
- **Xero**

## List of Default Fields

The following default fields are pulled in from each accounting system that is integrated via Merge. They can be selected during the configuration process:

- **Variables**: One variable per GL Account
- **Dimensions**: Two tracking dimensions

## Prerequisites for the Setup

**Necessary Authentications**

You will need to ensure that you set up all necessary **authentications** that are requested in the connection flow.

These authentications differ slightly by accounting system -- [open this link to see a full breakdown](https://help.merge.dev/collections/8712682978-accounting-1) (by our API provider, **Merge**).

{% stepper %}
{% stepper-step %}
Choose one of the following options:

- Open the **Data** workspace from the overview on the start page and click **\+ New.**

- Open the model into which you would like to integrate the data, click the **+** sign next to **Data** in the overview, and choose **New data source**.
{% /stepper-step %}
{% stepper-step %}
In the **Data sources** dialog, open the **Accounting** tab and choose the system from which you want to integrate data.

'Accounting' tab
{% /stepper-step %}
{% stepper-step %}
Choose if you want to:

- Use xP&A's **P&L and Runway report**
- Use xP&A's **Full P&L and balance sheet report**
- Create the data source **manually** and link the data to your models by yourself (**Advanced**)
{% /stepper-step %}
{% stepper-step %}
Configure the steps of the **New Data Source** dialog as described in the following section.
{% /stepper-step %}
{% stepper-step %}
Click **Create data source**.
{% /stepper-step %}
{% /stepper %}

### Set-up Steps

The **New Data Source** dialog is displayed as follows, for example:

'New Data Source' dialog

#### Choose a connection

If you have not configured a connection yet, click **New Connection** and follow the steps in the connection set-up dialog, which depend on the selected system.

A detailed description on how to authenticate with each system can be found in [Merge's Help Center](https://help.merge.dev/collections/8712682978-accounting-1).

#### Select a dataset

Select the data set you would like to connect. The following options are available:

- **Profit and Loss**
- **Balance Sheet**

#### Select an accounting method

Select the accounting method to be used when generating the report. The following options are available:

- **Accrual**
- **Cash**

#### Advanced configuration

Select if you want to **pull classes and/or departments** or if you want to **pull vendors and customers**.

{% info-box %}
- Pulling in **vendors and customers** allows you to pull in departments, classes, vendors, customers, etc. as dimensions in xP&A, enabling you to model at a more granular level.
- Even if you do not select this option, you will still be able to [drill down](https://support.lucanet.cloud/en/documentation/xp-a---extended-planning-and-analysis/integrating-data/working-with-integrated-data/drill-down-on-integrated-data.md) to see actuals at this level of detail.
- Only select the dimensions you actually need, as refreshing the data source will take significantly longer if you have many tracking dimension items.
{% /info-box %}