Xero Certified Advisor Xero Invoicing and Bills 4

Question 1

A Xero invoice is marked 'Awaiting Approval.' What does this mean?

Accepted Answer

The invoice is saved as a draft and has been submitted but not yet approved

Answer

Awaiting Approval means the invoice has been saved but not yet approved — it won't affect accounts receivable until approved.

Question 2

In Xero, how do you record a supplier credit note (a reduction on an existing bill)?

Accepted Answer

Create a credit note under Accounts > Purchases

Answer

Supplier credit notes are created under Accounts > Purchases > Credit Notes, separate from the original bill.

Question 3

Which Xero feature lets you automatically populate invoice line items based on a previous transaction with the same contact?

Accepted Answer

Suggested line items / contact defaults

Answer

Xero remembers the last accounts and descriptions used for a contact and suggests them as defaults when creating a new transaction.

Question 4

A client in Xero wants to offer a 2% early payment discount on invoices. How is this best configured?

Accepted Answer

Using a discount field on invoice line items or at the header level

Answer

Xero supports a discount percentage field on individual line items or, in some configurations, at the invoice header level.

Question 5

When reconciling a bank payment in Xero against an existing bill, what does clicking 'Match' do?

Accepted Answer

It marks the bill as paid and clears the bank transaction

Answer

Matching a bank transaction to a bill marks the bill as fully or partially paid and removes the transaction from the reconciliation queue.

Xero Certified Advisor Practice Test