When a merchant is added in Fyle, the expense gets posted to the respective contact on Xero if there's a match and to 'credit card misc' if a match is not found. Since employees make purchases from merchants who may not be in the supplier/contact list you're maintaining in Xero, some expenses may be posted to 'credit card misc'.
If your accountant is interested in running contact-based reports to track expenses made with a particular merchant, the accountant may not be able to do so with the expenses getting posted to 'credit card misc'. Auto-creating a new contact in Xero whenever a new merchant is added in Fyle will help track expenses made with merchants outside the supplier/contact list you're maintaining in Xero.
Following are the steps to auto-create newly added fyle merchants as contacts in Xero.
Auto-Create Fyle Merchants as Contacts in Xero
To enable this feature,
Log in to your Fyle-Xero Integration using your Fyle Admin credentials.
Head to Configuration > General.
Enable the Auto-Create Fyle Merchants as Contacts on Xero toggle button.
Note: With this setting enabled, when the merchant added in Fyle does not have a corresponding match in the Xero contact list, the integration will auto-create a new contact on Xero and assign the respective bank transaction to the contact. If not enabled, the transaction will be recorded as 'Credit card misc' when no match is found in Xero for a merchant added in Fyle.
Do reach out to us at [email protected] if you need any assistance setting this up.