For Admins, Managers, and payroll users: Use this article to create, manage, and connect Xero allowance mappings before syncing timesheets.
Staff members should contact their manager or payroll administrator if they have a question about an allowance, pay rate, or hours.
Go to Finance
From the left navigation menu, select Finance.
This opens the Finance area, where pay calendars, shift pay rates, allowances, leave, timesheets, notifications, staff mapping, and Xero settings can be managed.
Open the Allowances tab
At the top of the Finance page, select Allowances.
The Allowances page shows recurring or one-off allowances applied to shifts and pay runs.
You can view allowance details in the table, including:
Name
Type
Requestable
Xero Allowance
Review existing allowances
Use the allowance table to check which allowances already exist.
The Xero Allowance column shows whether an allowance has been assigned to a Xero allowance pay item.
If the value shows Not Assigned, the allowance is not currently linked to a Xero allowance.
You can also use the Search allowances field to find an allowance by name.
Create a new allowance
Select Create Allowance.
The Create Allowance window will open.
Complete the required fields:
Name
Enter the allowance name, such as Sleepover Allowance.Type
Select the allowance type from the dropdown.Xero Allowance
Select the matching Xero allowance pay item, if available.Requestable
Turn this on if staff should be able to request this allowance from their dashboard.
Select Save to create the allowance.
Important: Only create, edit, or connect allowances if you are authorised to manage payroll settings.
Select the allowance type
In the Type field, open the dropdown and select the correct allowance type.
Available types may include:
Active Jobs
Transport
Travel
Laundry
Meals
Tools
Tasks
Choose the type that best matches how the allowance should be used.
Assign the Xero allowance pay item
In the Xero Allowance field, select the matching Xero pay item.
If no Xero allowance pay items are available, the field may show a message such as No allowances exist in the selected finance account.
If this happens, check that:
Xero is connected
The correct Xero organisation is linked
The allowance pay item exists in Xero
The connected Xero organisation has payroll access enabled.
Select the Xero pay item that matches the allowance type and your organisation’s payroll setup.
If the required Xero pay item is missing, create or update it in Xero only if you are authorised to manage payroll settings.
Edit an existing allowance
To update an existing allowance, select the three-dot menu on the right side of the allowance row.
Select Edit.
The Edit Allowance window will open.
Update the allowance details as needed, then select Save.
You can edit details such as:
Name
Type
Xero Allowance
Requestable status
Save the allowance
After entering or updating the allowance details, select Save.
The allowance will appear in the Allowances table.
Check the Xero Allowance column to confirm whether the allowance is assigned or still showing as Not Assigned.
Important Notes
Allowances must be created in Diversity Sync’d before they can be applied to shifts or pay runs.
Xero allowance pay items must exist in Xero before they can be assigned in Diversity Sync’d.
If an allowance is not assigned to a Xero pay item, it may not sync correctly during timesheet or payroll export.
If Requestable is enabled, staff can request the allowance from their dashboard.
Review which allowances are requestable before making them available to staff.
Each connected Xero organisation may have its own allowance pay items.
Use clear allowance names so finance and payroll users can identify them easily.
Important: Do not change allowance mappings if payroll has already been processed or finalised in Xero. Follow your organisation’s payroll correction process instead.
Troubleshooting
If you cannot see the Finance menu:
Check that your account has the correct Finance permissions.
Contact your system administrator if you need access.
If you cannot see the Allowances tab:
Confirm you are in Finance.
Check that your role has permission to manage allowances.
Refresh the page and try again.
If no Xero allowance pay items appear:
Confirm that Xero is connected.
Check that the correct Xero organisation is linked.
Make sure the allowance pay item exists in Xero.
Confirm the Xero account has permission to access payroll and pay item settings.
Try reconnecting Xero if the connection has expired.
If the allowance does not save:
Make sure the Name field is completed.
Select a valid Type.
Check whether any required Xero allowance field is missing.
Refresh the page and try again.
If timesheets are not syncing correctly:
Confirm the allowance is assigned to the correct Xero Allowance.
Check that the allowance is attached to the correct shift or pay run.
Review the connected Xero organisation.
Contact your payroll administrator or system administrator if the issue continues.