If your Australian group operates multiple entities—say, a franchisor with state-level subsidiaries, an NFP with separate projects and funding streams, or a holding company with several trading companies—you’ve probably felt the pain of keeping approval rules consistent across all books. Separate tenants in Xero often mean fragmented processes, duplicated effort, and unclear audit trails when month-end and BAS time roll around.

This guide shows you how to connect several Xero organisations to a single, reusable approval matrix so that bills, POs, and sales invoices follow the same policy regardless of which legal entity they belong to. Xero supports multiple organisations under one login (each is a separate “tenant” with its own subscription), which makes the approach below both practical and scalable.

Why Australian finance teams need one approval policy across several Xero organisations
Multi-entity structures are normal in Australia: consolidated groups with distinct ACNs, franchise networks, and NFPs with project-based ledgers. Yet many teams still hard-code approvals inside each tenant, leading to diverging rules, duplicated maintenance, and audit friction. Because Xero lets a single user connect to multiple organisations—each treated as a separate tenant/subscription—you can centralise policy in a workflow layer that routes by organisation automatically while keeping the ledgers separate for compliance.

Positioning: Approveit as the AI-enhanced workflow layer for Xero
Approveit acts as the orchestration layer on top of Xero: it plugs into your stack and applies smart routing and policy consistently across entities. Use it to define one approval matrix, add conditional rules, and sync the finalised transactions back to the correct Xero organisation—all with a clear audit trail. If you need a high-level overview of how integrations work, see the Integrations page; for decision logic and conditions, explore AI Decision Making.

What You’ll Set Up (bulleted outcomes)

• Connect multiple Xero organisations to Approveit using secure OAuth, one connection per organisation.

• Build a single approval matrix with rules (amount thresholds, cost centres, departments, projects, and locations).

• Route bills/POs/invoices to the right approvers per organisation and sync the approved items to the correct Xero tenant. For step-by-step patterns, see the Xero guides (e.g., Bills and POs).

• Maintain an audit trail that supports AU GST/BAS workflows (timestamps, attachments, approver identities, and policy references) without offering tax advice.

Prerequisites

• Xero access for each organisation you plan to connect. You’ll need to be the subscriber or be invited with a role that permits app connections. See Xero Central for inviting users and roles.

• Approveit workspace with access to Integrations, so you can connect Xero and manage multiple entity connections.

(Optional) Your approval policy documented: amount tiers (net and gross), category mapping (e.g., cost centres), project codes (tracking categories), and exceptions.

Connect Each Xero Organisation to Approveit

1. Go to Settings → Integrations → Xero → Add or update connection.
   Repeat this for each organisation you need to connect. Each connection maps one Xero tenant to your Approveit workspace. Approveit’s Xero guides show this screen and flow.

   Tip: Keep a simple checklist (Org name, ABN, who authorised, date/time).

2. During request creation, choose the Xero account and organisation the item belongs to.
   This step ensures the bill, PO, or invoice is posted back to the correct tenant once fully approved. Your end-users don’t need to remember policy nuances; they simply select the right entity and Approveit does the routing.

3. Confirm connection status in the Integrations panel.
   After connecting, verify that each tenant shows Connected with the correct org name. If something looks off, re-authorize the connection (common after password changes, permission updates, or security policy rotations).

4. Tip on Xero API limits (per organisation):
   Xero enforces per-tenant rate limits (e.g., 60 calls/min, 5,000 calls/day, and a small concurrent request cap). Plan your syncs and scheduled imports accordingly—especially if you run large batch posts near month-end. If multiple Xero orgs are connected, limits apply independently to each org’s connection.

Troubleshooting common connection issues

• “I can’t see the organisation when authorising.” Confirm you were invited to that org and assigned an appropriate role. Ask the subscriber to re-invite or elevate your access.

• “I keep getting 429 errors.” That’s a rate-limit signal. Throttle batch operations, spread them out over time, or run entity-by-entity to take advantage of per-tenant limits.

• “Which user should authorise?” Best practice is to use a service account (a dedicated Xero user) with least-privilege access sufficient for the integration, rather than a personal account, to avoid disruption when staff leave or passwords change. (This is a general integration hygiene recommendation.)

Build One Approval Matrix for All Organisations

Create a workflow template
Start with a ready pattern such as Xero Bill Approval or Xero Purchase Order Approval from Approveit’s template gallery. Templates accelerate rollout and come pre-wired for Xero fields and sync behaviour.

Define global approver tiers with conditional rules
Lay down your tiered policy once—then let conditions do the heavy lifting across entities:

• Amount thresholds: Use both Subtotal (Net) and Total (Gross) logic when needed. This accommodates mixed-GST scenarios and makes it easier to map policy to BAS reporting nuances.

• Category/Department/Project: Route by cost centre or tracking category (e.g., “WA Field Ops”, “NSW Retail”, “Grant A-2025”).

• Supplier risk or item type: Flag vendors that require extra scrutiny (e.g., new vendor, capex vs opex).

• Location or entity: Add a quick condition on “Organisation = AU-QLD Pty Ltd” to swap approvers without duplicating the whole matrix.

Why this matters: One matrix avoids drift. You change a rule once and every organisation respects it immediately—no more chasing policy parity across tenants.

Add organisation-specific overrides
Some roles (like CFO or Entity Manager) differ by org. Don’t clone the matrix—just insert entity-scoped overrides:

• If Organisation = QLD Pty Ltd → Approver Tier 3 = “QLD CFO”

• If Organisation = NSW Pty Ltd → Approver Tier 3 = “NSW CFO”

This keeps 95% of the matrix global while allowing the last mile to be entity-specific.

Save as a reusable template
Name it clearly (e.g., “AU Multi-Entity: Bills & POs”) so new flows can be spun up quickly for sub-ledgers or special projects (capital works, grants, or franchising campaigns).

If you want a broader view of workflow design patterns, this Workflow Automation page summarises how AI-powered rules, no-code builders, and integrations fit together.

Route Bills, POs, and Invoices (Then Sync to the Right Xero Tenant)

Bills (Accounts Payable)

• Requestors submit bills with supporting documents and select the organisation.

• The approval matrix triggers automatically (by amount, category, project, or supplier).

• When fully approved, Approveit posts the bill to the selected Xero organisation, preserving references (supplier, account, tax treatment) and attachments. See the Xero Bills guide for the screens involved.

Purchase Orders

• Teams raise POs upfront, following the same matrix and entity selection.

• Approveit generates the PO and syncs it into the correct tenant so receiving and matching are clean later on. See the Xero Purchase Orders guide for the setup flow.

Sales Invoices

• For AR approvals (e.g., discount approvals, credit notes), build a lightweight matrix that ensures pricing exceptions or grant-funded invoices get the right sign-off before posting. The Xero Invoices guide covers common patterns and conditional rule examples.

Pro tip: Where possible, standardise tracking categories (or at least agree a cross-entity mapping) so the same conditional rules behave predictably across organisations. This is particularly helpful when you consolidate for management reporting.

To understand how Approveit’s decision logic comes together with routing and human-in-the-loop controls, skim the AI Decision Making overview (it’s designed for non-data-scientists).

Audit Trail That Supports AU GST/BAS Workflows

Approvals can be the first line of evidence in your GST/BAS story: who approved, why they approved, what the supporting documentation said at the time, and how tax codes were selected. Approveit captures timestamps, approver identities, comments, attachments, and condition hits (which policy branch fired), and it keeps those records linked to the transaction that lands in Xero. This helps with BAS preparation and review, vendor disputes, and grant acquittals—without turning your month-end into a scavenger hunt. (This is general positioning, not tax advice.)

What auditors appreciate

• The approval path is visible, complete, and locked after posting.

• Evidence lives together with the transaction, not scattered across inboxes.

• Consistency: the same matrix across entities reduces exceptions and outliers.

Working With Xero API Limits (Multi-Org Reality)

When you connect multiple Xero organisations, remember that each connection has its own rate limits. That’s good news—you can parallelise work across entities—but you still need to be intentional:

• Batch thoughtfully: Schedule heavier syncs (bulk bill posts, large PO imports) to stagger across entities and avoid spikes.

• Monitor for 429s: If you hit 60 calls/minute or 5,000/day for a given organisation, throttle and retry later.

• Design for concurrency caps: Limit concurrent requests per tenant to avoid saturating the 5-request concurrent limit.

• Use entity isolation: If one org’s limit is reached, keep working on others rather than stopping the entire run. Xero’s own docs discuss tenants/connections and best practices here.

Security & Access Controls

In Xero

• Ensure the user authorising Approveit has appropriate access to each organisation. If you can’t see an org during authorisation, invite the user or adjust roles.

• Consider a dedicated integration user (service account) per org with least-privilege access needed for posting transactions.

In Approveit

• Restrict who can modify the global approval matrix vs. who can raise requests.

• Use teams/groups to scope approver visibility (e.g., entity managers only see their org’s approvals).

• Review the Integrations tab regularly to verify connection health; re-authorise when personnel changes or security policies rotate credentials. You can learn how Approveit ties systems together on the Integrations page.

FAQs (Multi-Entity + Xero)

Can one Approveit workspace connect to multiple Xero organisations?
Yes. You connect each organisation separately (one OAuth connection per tenant), then apply one approval matrix across them. This is aligned with Xero’s multi-organisation model (separate tenants/subscriptions under one login).

Do approvers need a Xero seat?
Not necessarily. Approvers act in Approveit; only the authorised connector needs sufficient Xero permissions to post. Check with your compliance policy and auditor preferences—some organisations prefer approvers to have read-only Xero access for context.

What if approval rules vary slightly by entity?
Keep one global matrix and add entity-specific overrides (e.g., different CFO for Subsidiary A vs. B). This avoids cloning and keeps your rule maintenance simple.

Will this help at BAS time?
Yes. A consistent approval trail (who, when, why, what supporting docs) improves GST coding discipline and makes evidence easier to retrieve during BAS prep and reviews.

What about rate limits across many entities?
Plan syncs and imports for each entity separately; limits apply per tenant connection (60/min, 5,000/day, with a small concurrency cap).

Example: Franchise Group With State Entities

Scenario

• Parent company with QLD, NSW, and VIC subsidiaries (each a separate Xero org).

• Group policy:

  • Tier 1: Line Manager approves ≤ $5,000 (net)

  • Tier 2: State Ops approves $5,001–$25,000

  • Tier 3: State CFO approves $25,001–$100,000

  • Tier 4: Group CFO approves > $100,000

• Exceptions: Marketing spends over $10,000 require the Group Marketing Director as an additional approver; new vendors require Procurement sign-off.

Build in Approveit

• Create one “Xero Bill Approval” template.

• Add conditions on Subtotal (Net) and Total (Gross) where GST handling matters.

• Add Organisation override for Tier 3: “If Org = QLD Pty Ltd → Approver = QLD CFO; if Org = NSW Pty Ltd → Approver = NSW CFO” (and so on).

• Insert category-based conditions for marketing and new vendor workflows.

• Roll out the same template to POs, ensuring encumbrance control before spend is committed.

• Publish and train teams to select the correct organisation during request creation.

Outcome

• One matrix governs all three entities.

• Clear audit trail for state-level approvals and group exceptions.

• Consistent tax coding behaviours driven by conditions and templates.

Rollout Plan (Low-Risk, High-Signal)

1. Pilot with one org, one document type (e.g., POs for NSW). Measure cycle time and exception rates.

2. Add QLD and VIC using the same matrix with entity overrides.

3. Expand document types (Bills, then AR Invoices) once POs are steady.

4. Review API usage weekly during rollout; if you see 429s, stagger syncs.

5. Educate requestors to select the correct organisation every time (use a required field and clear labels).

6. Lock ownership of the approval matrix (who owns changes; change-log discipline).

7. Document the evidence path for auditors: where to find approvals, comments, attachments, and policy condition hits (screenshot a sample trail and keep it in your month-end checklist).

Quick Steps Recap (for your SOP)

• Integrations: Settings → Integrations → Xero → Add or update connection (repeat per organisation).

• Workflow: Start from Xero Bill/PO templates; define tiers + conditions (net/gross thresholds, category, project, location).

• Overrides: Swap CFOs and managers by organisation without cloning the whole flow.

• Operate: End-users select organisation at request creation; Approveit routes and posts to the right tenant.

• Comply: Use the audit trail to support GST/BAS workflows and audits.

• Scale: Respect per-tenant rate limits; schedule batch posts and large imports sensibly.