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How to record Tax on Stock Orders sent to Xero


To apply tax on Stock Orders that have been sent to Xero from Retail POS.


  • Retail POS for Mac or PC
  • Xero


Stock orders are sent to Xero manually unlike the other entities such as On Account sales, Register closure and COGS.

Once an order has been received in Retail POS, it will create a red Xero tag in front of it and you can click on the tag to send it to Xero.

After the Stock Order has been sent to Xero you might want to add tax or remove tax from some/all of the products.

This can be divided into two situations:

  1. Products in order are Tax inclusive: In this scenario, the product’s supply price does include the tax and once you send the stock order to Xero, you do not want to add any further tax on the invoice. All you need to do is map the product with a Purchase account code with the tax rate set as 0%. This will make the stock order value in Retail POS equal to stock order value in Xero.

  2. Products in order are Tax exclusive: For some products which are tax exclusive in your Retail POS stock order, you might want tax to be applied to it once it is sent to Xero. In this case, you need to map it with a Purchase account code where the tax rate is equal to the tax that should be applied on the supply price.

For example: a product with a value of $15.00 and mapped to a purchase code with 10% GST would show the total value as $16.50 including tax on Xero invoice ($15.00 + 10% of $15 = $16.50).

Additional information

How to edit product account codes in bulk for the Xero integration



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