diff --git a/commerce_xero.admin.inc b/commerce_xero.admin.inc
index 7186fe2..f942a98 100644
--- a/commerce_xero.admin.inc
+++ b/commerce_xero.admin.inc
@@ -19,7 +19,7 @@ function commerce_xero_account_form($form, &$form_state, $bank = NULL) {
   $bank_options = commerce_xero_bank_account_options();
   $rev_options = commerce_xero_revenue_account_options();
   $method_options = commerce_payment_method_options_list();
-  $tracking_categories = commerce_xero_tracking_categories_options_list();
+  $form_state['tracking_categories'] = commerce_xero_tracking_categories_options_list();
 
   if (empty($bank_options)) {
     drupal_set_message(t('Could not find any valid bank accounts associated with your Xero company. A bank account must have an account code in order to be used with bank transactions.'), 'error');
@@ -70,12 +70,13 @@ function commerce_xero_account_form($form, &$form_state, $bank = NULL) {
     '#default_value' => isset($bank) ? $bank->transaction_type : '',
   );
 
-  $form['tracking_category'] = array(
+  $form['tracking_option'] = array(
     '#type' => 'select',
     '#title' => t('Xero tracking category'),
     '#description' => t('Choose the tracking category the transaction should be listed under.'),
-    '#options' => $tracking_categories,
-    '#default_value' => isset($bank) ? $bank->tracking_category : '',
+    '#options' => $form_state['tracking_categories'],
+    '#element_validate' => array('commerce_xero_account_tracking_option_validate'),
+    '#default_value' => isset($bank) ? _commerce_xero_account_extract_tracking_value($form_state['tracking_categories'], $bank->tracking_option) : '',
   );
 
   $form['actions'] = array('#type' => 'actions');
@@ -100,6 +101,49 @@ function commerce_xero_account_form($form, &$form_state, $bank = NULL) {
 }
 
 /**
+ * Helper function to extract tracking category option key from tracking
+ * categories array based on the the label.
+ *
+ * @param $categories
+ *   Tracking categories.
+ * @param $option
+ *   The tracking option.
+ * @return integer
+ *   The key in the array.
+ */
+function _commerce_xero_account_extract_tracking_value($categories, $option) {
+  return array_reduce($categories, function(&$result, $item) use ($option) {
+    if (!empty($result) || !is_array($item)) {
+      return $result;
+    }
+
+    $values = array_flip($item);
+    if (isset($values[$option])) {
+      $result = $values[$option];
+    }
+
+    return $result;
+  }, '');
+}
+
+/**
+ * Commerce Xero Account Tracking Category/Option Validate
+ */
+function commerce_xero_account_tracking_option_validate($element, &$form_state) {
+  // Set the value for the tracking category by its respective tracking option.
+  if (!empty($form_state['values']['tracking_option']) && $form_state['values']['tracking_option'] <> '_none') {
+    $opt_value = $form_state['values']['tracking_option'];
+    foreach ($form_state['tracking_categories'] as $category => $options) {
+      if (is_array($options) && isset($options[$opt_value])) {
+        form_set_value(array('#parents' => array('tracking_category')), $category, $form_state);
+        form_set_value($element, $options[$opt_value], $form_state);
+        break;
+      }
+    }
+  }
+}
+
+/**
  * Commerce Xero Account Form Validate
  */
 function commerce_xero_account_form_validate($form, &$form_state) {
@@ -115,7 +159,7 @@ function commerce_xero_account_form_validate($form, &$form_state) {
 }
 
 /**
- * Commerce Xero Account Form Delete 
+ * Commerce Xero Account Form Delete
  */
 function commerce_xero_account_form_delete($form, &$form_state) {
   $form_state['redirect'] = 'admin/commerce/config/xero/account/' . $form_state['account']->id . '/delete';
@@ -136,6 +180,7 @@ function commerce_xero_account_form_submit($form, &$form_state) {
       'bank_account' => '',
       'transaction_type' => '',
       'tracking_category' => '',
+      'tracking_option' => '',
     );
   }
 
@@ -144,6 +189,7 @@ function commerce_xero_account_form_submit($form, &$form_state) {
   $bank->bank_account = $form_state['values']['bank_account'];
   $bank->transaction_type = $form_state['values']['transaction_type'];
   $bank->tracking_category = $form_state['values']['tracking_category'];
+  $bank->tracking_option = $form_state['values']['tracking_option'];
 
   if (isset($bank->id)) {
     $ret = drupal_write_record('commerce_xero_bankaccount', $bank, array('id'));
@@ -161,15 +207,15 @@ function commerce_xero_account_form_submit($form, &$form_state) {
         'type' => 'xero_textfield',
         'settings' => array(
           'xero_type' => array('BankTransaction', 'Payment'),
-        ),  
-      ),  
+        ),
+      ),
       'display' => array(
         'default' => array(
           'type' => 'xero_reference',
           'label' => 'inline',
           'settings' => array(
             'display' => array('type', 'guid'),
-          ),  
+          ),
         ),
       ),
     );
diff --git a/commerce_xero.install b/commerce_xero.install
index c697568..6dd7e66 100644
--- a/commerce_xero.install
+++ b/commerce_xero.install
@@ -19,6 +19,7 @@ function commerce_xero_schema() {
       'payment_method' => array('type' => 'varchar', 'length' => 100, 'not null' => TRUE),
       'transaction_type' => array('type' => 'varchar', 'length' => 100, 'not null' => TRUE),
       'tracking_category' => array('type' => 'varchar', 'length' => 100, 'not null' => TRUE, 'default' => ''),
+      'tracking_option' => array('type' => 'varchar', 'length' => 100, 'not null' => TRUE, 'default' => ''),
     ),
     'primary key' => array('id'),
     'unique key' => array(
@@ -116,3 +117,11 @@ function commerce_xero_update_7002() {
   $schema = drupal_get_schema_unprocessed('commerce_xero', 'commerce_xero_bankaccount');
   db_add_field('commerce_xero_bankaccount', 'tracking_category', $schema['fields']['tracking_category']);
 }
+
+/**
+ * Add the tracking option field to the bank accounts table.
+ */
+function commerce_xero_update_7003() {
+  $schema = drupal_get_schema_unprocessed('commerce_xero', 'commerce_xero_bankaccount');
+  db_add_field('commerce_xero_bankaccount', 'tracking_option', $schema['fields']['tracking_option']);
+}
diff --git a/commerce_xero.module b/commerce_xero.module
index 65d4226..510c09d 100644
--- a/commerce_xero.module
+++ b/commerce_xero.module
@@ -149,6 +149,37 @@ function commerce_xero_views_api() {
 }
 
 /**
+ * Implements hook_xero_make_info().
+ */
+function commerce_xero_xero_make_info() {
+  return array(
+    'tracking' => array(
+      'file path' => drupal_get_path('module', 'commerce_xero') . '/commerce_xero.make.inc'
+    ),
+  );
+}
+
+/**
+ * Helper function to extract the correct array if 1 or greater elements in a
+ * Xero result set.
+ *
+ * @param $arr
+ *   The array of one or more items for a xero type i.e. pass in
+ *   $result['TrackingCategories'].
+ * @param $type
+ *   The xero type, singular, to check in the array.
+ * @return array
+ *   An array of one or more items.
+ */
+function _commerce_xero_extract_items($arr, $type) {
+  if (isset($arr[$type][0])) {
+    return $arr[$type];
+  }
+
+  return $arr;
+}
+
+/**
  * Load xero bank account.
  *
  * @param $id
@@ -243,20 +274,24 @@ function commerce_xero_revenue_account_options() {
  */
 function commerce_xero_tracking_categories_options_list() {
   $xero_tracking_categories = &drupal_static(__FUNCTION__, array());
+  $ret = array('_none' => t('- None -'));
 
   if (!$xero_tracking_categories) {
     $xero_tracking_categories = xero_query('get', 'TrackingCategories', FALSE, FALSE);
+    $xero_tracking_categories = _commerce_xero_extract_items($xero_tracking_categories['TrackingCategories'], 'TrackingCategory');
   }
 
-  $options = array('' => t('-- None --'));
-  $options += array_reduce($xero_tracking_categories['TrackingCategories'], function(&$result, $item) {
-    foreach ($item['Options']['Option'] as $option) {
-      $result[$item['Name']][$option['Name']] = $option['Name'];
+  $n = 0;
+
+  foreach ($xero_tracking_categories as $category => $options) {
+    $category_name = $options['Name'];
+    foreach ($options['Options']['Option'] as $option) {
+      $ret[$category_name][$n] = $option['Name'];
+      $n++;
     }
-    return $result;
-  });
+  }
 
-  return $options;
+  return $ret;
 }
 
 /**
@@ -548,6 +583,16 @@ function commerce_xero_create_banktransaction($payment, $order, $bank) {
   $transaction['BankTransaction']['LineItems'][0]['LineItem']['AccountCode'] = $bank->revenue_code;
   $transaction['BankTransaction']['LineItems'][0]['LineItem']['LineAmount'] = $total_amount;
 
+  // Add tracking category.
+  if ($bank->tracking_category) {
+    $tracking_options = array(
+      'options' => array(
+        $bank->tracking_category => $bank->tracking_option,
+      ),
+    );
+    $transaction['BankTransaction']['LineItems'][0]['LineItem']['Tracking'] = xero_make('tracking', 'all', $tracking_options);
+  }
+
   // It is safe to only have the total amount because the line items are inclusive.
   $transaction['BankTransaction']['Total'] = $total_amount;
 
@@ -608,3 +653,4 @@ function commerce_xero_create_invoice_payment($payment, $order, $bank, $invoice)
 
   return FALSE;
 }
+