Xero Certified Advisor Xero Invoicing and Bills 3 — Questions and Answers
Question 1: A Xero user wants a bill to recur on the 1st of every month automatically. Which feature handles this?
- Invoice templates
- Repeating bills (Correct answer)
- Scheduled payments
- Bank rules
Correct answer: Repeating bills
Repeating bills in Xero let you set a schedule so Xero automatically creates the bill at the chosen frequency.
Question 2: When you copy an invoice to a bill in Xero, which data is NOT automatically carried over?
- Line item descriptions
- Account codes
- The payment date (Correct answer)
- Tax rates
Correct answer: The payment date
Copying an invoice to a bill transfers line items, accounts, and tax rates, but you must manually set the bill's due date and payment details.
Question 3: A customer has overpaid an invoice in Xero. How should the overpayment be handled?
- Delete the invoice and create a new one for the correct amount
- Record an overpayment in Xero, which creates a credit to apply to future invoices (Correct answer)
- Manually adjust the bank feed transaction
- Create a new invoice for the difference
Correct answer: Record an overpayment in Xero, which creates a credit to apply to future invoices
Xero allows you to record an overpayment against a contact, generating a credit balance that can be allocated to future invoices.
Question 4: Which report in Xero would you use to see all unpaid bills grouped by how overdue they are?
- Profit and Loss
- Aged Payables (Correct answer)
- Account Transactions
- Budget Manager
Correct answer: Aged Payables
The Aged Payables report shows outstanding bills sorted into aging buckets (e.g., current, 1-30 days, 31-60 days) by supplier.
Question 5: In Xero, which invoice status allows you to still edit the invoice details?
- Awaiting Payment
- Paid
- Voided
- Draft (Correct answer)
Correct answer: Draft
Only invoices in Draft status can be freely edited; once approved (Awaiting Payment or Paid), editing is restricted.
Question 6: A Xero advisor needs to attach a PDF of a supplier's original bill to the Xero bill record. Where is this done?
- In the contact's document library only
- Using the 'Attach files' option on the bill (Correct answer)
- Via the bank reconciliation screen
- Through the Files menu under the Accounts tab
Correct answer: Using the 'Attach files' option on the bill
Each bill in Xero has an 'Attach files' or paperclip icon that lets you upload supporting documents directly to that transaction.
Question 7: What does 'Account for' mean when setting up a repeating invoice in Xero?
- The GL account the revenue posts to
- How many periods ahead Xero should pre-create the invoice (Correct answer)
- The contact the invoice is sent to
- The currency used for the transaction
Correct answer: How many periods ahead Xero should pre-create the invoice
'Account for' tells Xero how many future invoices to create in advance when the repeating schedule runs.
Xero Certified Advisor Xero Invoicing and Bills 3
A Xero user wants a bill to recur on the 1st of every month automatically.
Which feature handles this?