# How to code one invoice to several accounts in Xero

In Xero, give each cost on the supplier's invoice its own bill line. Pick the account and tax rate on each line. The lines together must match the invoice total.

## Short answer

1. Open the bill in Business > Bills to pay.
2. Add a line for each cost on the invoice.
3. Pick the account on each line.
4. Pick the tax rate on each line.
5. Check the lines add up to the supplier's total.

## Before you start

- Have the supplier's invoice open next to the bill.
- Know which accounts you use for materials, freight, labour and similar costs.
- Check the amount type at the top of the bill: Tax Exclusive, Tax Inclusive or No Tax.

## The manual way in Xero

1. Go to Business > Bills to pay. Open the draft bill, or choose New bill. Enter the supplier, bill date, due date and bill number.
2. Set the amount type at the top of the bill to match the invoice.
3. On the first line, type a description and the amount. This is one cost on the invoice.
4. Click the Account cell. Choose the account for that cost.
5. Click the Tax rate cell. Choose the rate for that line.
6. Add a new line for the next cost. Repeat steps 3 to 5.
7. Check the total at the bottom matches the supplier's invoice.
8. Save the bill, or submit it for approval.

Limits to know:

- One line holds one account. Split a cost by entering two lines.
- Xero does not learn the coding from earlier bills for the same supplier.
- There is no bulk edit for the account on many bill lines. Each bill is edited by hand.
- For a mixed GST invoice, see [how to split an invoice with mixed GST lines](/how-to/split-an-invoice-with-mixed-gst-lines/).

## The Pulsify way

1. Forward the invoice to your Pulsify address.
2. Pulsify reads each printed row as its own line. It sets an account on each line from how that supplier's past bills were coded in Xero. It matches the tax rate printed on the line to a tax code in your ledger.
3. Open the bill in the review screen. Every line, account and tax code is editable. A line with no account or tax code is marked amber.
4. Fix any line that is wrong. Pulsify uses what you pick next time.
5. Approve. Pulsify creates the bill in Xero with each line on its account.

## Worked example

Example Plumbing Supplies sends an invoice for $2,134 including GST. It has five lines.

| Line | Account | Tax rate | Amount excl. GST |
|---|---|---|---|
| Copper pipe | Materials | GST on Expenses | $850.00 |
| Fittings | Materials | GST on Expenses | $320.00 |
| Labour, 4 hours | Subcontractor Labour | GST on Expenses | $360.00 |
| Delivery to site | Freight - Inbound | GST on Expenses | $90.00 |
| Waste disposal | Waste Disposal | GST on Expenses | $320.00 |

The lines add up to $1,940.00. GST is $194.00. The total is $2,134.00, which matches the invoice.

## Common mistakes

- Using one account for the whole bill because it is quicker. Your reports then hide what the money was spent on.
- Setting the amount type wrong. A tax-inclusive invoice entered as tax exclusive adds GST twice.
- Forgetting to check the rate on a freight or levy line. See the mixed GST guide.

## Next step

[Try an invoice](https://app.pulsify.tech/sign-up) and see each line coded on your own bill. More on how it works is on the [automated line-item coding page](/automated-line-item-coding/).

## Common questions

### Can one Xero bill line go to two accounts?

No. A line has one account. To charge a cost to two accounts, enter two lines and divide the amount. The lines together must equal the original amount.

### Does Xero code each line from the supplier's past bills?

Not from the bill history. Xero can fill in defaults saved on the supplier's contact record. Those apply to the whole bill, not each line. A line-by-line choice is still yours.

### Can I edit the account on many bills at once in Xero?

There is no native bulk edit for bill accounts. It is an open request on Xero Product Ideas. Find and recode can change the account on posted transactions. See our guide on bulk changing account codes.

Source: https://www.pulsify.tech/how-to/code-one-invoice-to-several-accounts-in-xero/ (last checked 2026-10-19)