Unexpected Tax Code Used

Overview

The Unexpected Tax Code Used bookkeeping data check feature identifies transactions in Xero that have been given a tax code that is not the default tax code for the particular contact.

Transactions checked include:

• Customer Invoice Line Items (checked against the default sales tax code)
• Supplier Bill Line Items (checked against the default purchases tax code)
• Money In (checked against the default sales tax code)
• Money Out (checked against the default purchases tax code)

Note that transactions are only marked as unexpected where the applicable default tax code has been specified for the contact (either directly in Xero, or by using the Contact Defaults bookkeeping check feature in Xenon Connect).

Therefore, if the contact’s default tax code is blank, then transactions will not show up as unexpected for that contact.

Of course, some contacts will have transactions that have been legitimately coded to a tax code other than the default tax code for the contact. The purpose of the check is to verify that any differences are in fact correct.

Details provided for each transaction include:

• Type (e.g. invoice, bill, money in or money out)
• Contact name
• Date of transaction
• Details/description
• Net Amount of transaction
• Tax code used
• “Change to” value (Default tax code for contact, i.e. the expected tax code)

Changing the transaction’s tax code

If you decide that the tax code currently given to the transaction in Xero is inappropriate, you can quickly and easily change it using one of the following methods:

1. Select a tax code in the “Change to” column. The top value shown is the default tax code set up for the contact. The bottom drop-down menu allows you to pick any tax code, if appropriate. Then, click the “Save Changes” button.
2. If the transaction is reconciled (bank item) or has a payment or credit note allocated to it (invoice or bill) within Xero, then the tax code value cannot currently be updated directly from Xenon Connect (although we hope to allow this if Xero API constraints are updated in the future). Therefore, currently, such transactions must be updated using the “Edit in Xero” button.

View transaction in Xero

For each unexpected tax code used item found, you are able to click the View button after which you will be taken directly to the applicable transaction within your Xero account. This will allow you, for example, to investigate the item further.

Dismiss Item

If you decide that a particular transaction already has the correct tax code used, then you can click the “Dismiss” button to hide the item and prevent that transaction from appearing in the list again.

Show Dismissed Items

You can quickly include all previously dismissed transactions, by enabling the “Show dismissed items” toggle.

This allows you to recheck and edit any tax codes that have previously been dismissed in error.

Bulk Process Options

The following bulk actions can be taken by using the check boxes and Bulk Process Options drop down menu:

• Multiple transactions can be dismissed in bulk