Xero Invoicing and Bills Flashcards

A client wants to send a batch of invoices to multiple customers at once in Xero. Which feature should they use?

Answer: Batch invoicing from the Invoices list

In Xero you can select multiple draft invoices from the Invoices list and approve or email them as a batch.

When applying a credit note to an outstanding invoice in Xero, where do you initiate this action?

Answer: From the credit note itself using 'Allocate Credit'

You open the credit note and use the 'Allocate Credit' option to apply it against one or more outstanding invoices.

A bill in Xero has been partially paid. What status will it show?

Answer: Awaiting Payment

A partially paid bill remains in 'Awaiting Payment' status until the full balance is cleared.

Which Xero field on a bill determines which expense account the cost is posted to?

Answer: Account (on the line item)

The Account field on each bill line item maps the cost to the correct expense or liability account in the chart of accounts.

A US-based business in Xero wants to record that a supplier invoice is subject to sales tax. Where is sales tax applied?

Answer: On each line item via the Tax Rate field

Tax rates are selected on each individual line item of a bill, giving flexibility for mixed-tax invoices.

What happens in Xero when you void an approved invoice that has already been emailed to a customer?

Answer: It remains visible with a 'Voided' status and cannot be edited

Voided invoices stay in Xero with a Voided status for audit trail purposes and cannot be further edited or deleted.

In Xero, what is the purpose of the 'Due Date' field on an invoice?

Answer: It determines when payment is expected and drives the Aged Receivables report

The Due Date controls when the invoice appears overdue and is the basis for aging buckets in the Aged Receivables report.