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Community > Small Business >

Sales tax is not included in the total when using “Assign expenses to a customer”.

Started by Jay Kvam -   in Small Business

To request reimbursement for the full cost of an item, thus including sales tax, one has to include the full amount on a bill to the customer. Xero, however, doesn’t include sales tax in the total when using the “Assign expenses to a customer” feature.

This means that the sales taxes, having already been input, must be reentered on the bill. In addition to that added inefficiency, there is a case when doing so is a problem, that is when a “Tax Amount” was added for the item. Unfortunately, that column is absent and cannot be added to a bill.

Furthermore, if an adjustment was made to the sales tax amount using the “includes Adjustment to Tax” feature, say in the case of a receipt error, then there seems to be no way to have that be reflected on the bill either, as that line cannot be added to the bill below the Sales Tax line as it can be with expenses.

Improving how expenses are assigned and addressing the identified issues would be appreciated.
Appreciate where you're coming from, Jay. We've had other requests for both use of the sales price of the billable expense item and adjustment of the tax amount where you can add your vote and follow the conversations.
When we do have news to share on these requests we'll be sure to pop in and share with everyone interested there.

Kelly M (Community Manager)  

Jay, include the cost of the sales tax in the item price.

Nancy Wauchope  

Yeah, in line with what you suggest, Nancy, I’ve found that if I change “Amounts are” to “No Tax”, then I’m able to assign the full amount of the expense to the customer, and so have been doing that for all my billings.

I did; however, run into an interesting case where a dinner check was split with the client. Using “No Tax”, I could bill him; however, the sales tax for my share won’t be available for reporting. No simple way to address that, without having to convolute the system, which is a no-go.

Jay Kvam