When you set up tax rates within Xero for taxes like state or local sales taxes, HST, VAT, or GST, Entryless replicates the tax categories you defined.
Tax settings are imported when you import your Chart of Accounts from Xero during initial setup and are attached to Entryless in a specific general ledger (GL) expense account.
When selecting a GL expense account, Entryless applies tax rate settings automatically. Tax rates are handled at the line item level if there are multiple expense accounts created for differing tax rates.
Once you import your Chart of Accounts, all Tax rates are attached on Entryless into a specific general ledger expense account. When selecting a general ledger expense account, tax rate settings are applied automatically, and these are being handled at every line item level if you add more expense accounts.
Tax Exceptions to Consider
If there is a difference between the tax rate settings imported to Entryless from Xero and the tax amounts displayed on the line item of a particular bill, Entryless will alert you to the mismatch. If this happens, you can either:
- Apply the tax rates defined in Xero, which will change the bill amount in Entryless to match your defined tax settings, or
- Accept the tax amount(s) on the specific bill, which will override the default tax settings that would normally be applied to the bill.