Xero Certified Advisor Xero Invoicing and Bills 2 — Questions and Answers
Question 1: A client wants to send a batch of invoices to multiple customers at once in Xero. Which feature should they use?
- Repeating invoices
- Batch invoicing from the Invoices list (Correct answer)
- Invoice templates
- Email templates
Correct 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.
Question 2: When applying a credit note to an outstanding invoice in Xero, where do you initiate this action?
- From the customer's contact record
- From the credit note itself using 'Allocate Credit' (Correct answer)
- From the bank reconciliation screen
- From the chart of accounts
Correct 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.
Question 3: A bill in Xero has been partially paid. What status will it show?
- Draft
- Awaiting Payment (Correct answer)
- Awaiting Approval
- Paid
Correct answer: Awaiting Payment
A partially paid bill remains in 'Awaiting Payment' status until the full balance is cleared.
Question 4: Which Xero field on a bill determines which expense account the cost is posted to?
- Description
- Account (on the line item) (Correct answer)
- Reference
- Tracking category
Correct 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.
Question 5: A US-based business in Xero wants to record that a supplier invoice is subject to sales tax. Where is sales tax applied?
- In the contact's default settings only
- On each line item via the Tax Rate field (Correct answer)
- Automatically based on the payment account
- In the organization's tax settings, not on the bill
Correct 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.
Question 6: What happens in Xero when you void an approved invoice that has already been emailed to a customer?
- It is automatically deleted from the system
- It remains visible with a 'Voided' status and cannot be edited (Correct answer)
- It reverts to Draft status for editing
- It is moved to the archive folder
Correct 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.
Question 7: In Xero, what is the purpose of the 'Due Date' field on an invoice?
- It sets the invoice issue date for tax reporting
- It determines when payment is expected and drives the Aged Receivables report (Correct answer)
- It triggers an automatic payment from the bank feed
- It locks the invoice from further editing
Correct 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.
Xero Certified Advisor Xero Invoicing and Bills 2
A client wants to send a batch of invoices to multiple customers at once in Xero.
Which feature should they use?