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Configure your Xero account

Support
Updated

Introduction

Once you’ve finished the Anrok & Xero integration process, there are still a few additional steps you’ll need to complete within Xero before you can start creating and editing invoices. This will ensure that your Xero account has been properly configured for tax calculation.

 

 

Create items for all products and services

Items in Xero represent the products and services you are selling. Items help Anrok determine the taxability and tax rate of a product or service in a given jurisdiction — so they must be present on all of your invoices. If you haven't done so already, you'll need to make sure every product and service you sell has a corresponding item in Xero.

Try creating a new item in the demo above ☝️

  1. In the Xero app CleanShot 2023-07-19 at 15.00.52@2x.png, go to Products and services. Take me there!
  2. Click New item, then under New item, add the following information:
    • Code — add an item code to find and organize your items.
    • Name — add an item name for internal use only.
  3. Next to Purchase, deselect the checkbox  xero_empty_checkbox.png.
  4. Under Sell, add the following information:
    • Sale price — add the sale price of the item in your base currency.
    • Sales account — select the default chart of accounts code for revenue received when selling the item.
    • Tax rate — select Tax on Sales.
  5. When you are finished, click Save or Save & add another.

 

 

Check if your existing items have been configured correctly

If you already have items created in Xero, you will need to ensure each item has been configured correctly for tax calculation.

Try editing an existing item in the demo above ☝️

  1. In the Xero app CleanShot 2023-07-19 at 15.00.52@2x.png, go to Products and services. Take me there!
  2. Select an existing item, then click Edit item.
  3. When editing your existing item, make sure you have done the following:
    • Added a Name for the item.
    • Deselected the checkbox  xero_empty_checkbox.png  next to Purchase.
    • Added a Sale price and Sales Account.
    • Selected Tax on Sales as the Tax rate.
  4. When you are finished, click Save.

 

 

Add VAT IDs to your customer contacts

Adding a VAT ID to your customer contacts will be essential for tracking international economic nexus exposure. Once a VAT ID has been added, Anrok can use your customer's VAT ID to verify an invoice's taxability in a given country/region.

Try adding a VAT ID to a customer contact in the demo above ☝️

  1. In the Xero app CleanShot 2023-07-19 at 15.00.52@2x.png, go to Customers. Take me there!
  2. Select a customer contact, then click Edit.
  3. Go to Financial details, then under Tax, input the customer's VAT ID.
  4. When finished, click Save & close.

 

 

Switch to the new invoicing layout

Since Anrok depends on issue dates and due dates to be included on your invoices for tax calculation, it's required for you to switch to the new invoicing layout, if you are not using it already.

Try switching to the new invoicing layout in the demo above ☝️

  1. In the Xero app CleanShot 2023-07-19 at 15.00.52@2x.png, go to a new or existing invoice.
  2. At the bottom, click Switch to the new invoicing.

 

 

Now that you’ve set up your Xero account to work smoothly with Anrok, let's take a look on how to make sure Anrok's sales tax is added to your invoices. Check out our best practices for invoicing in Xero.

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