# How to set a default account code for each supplier in Xero

Open the supplier under Contacts, edit it, and set a default purchases account and tax rate. Xero uses it when a bill is created from email, web or mobile. It may not apply to bills created by connected apps.

## Short answer

1. Open the supplier under Contacts > Suppliers.
2. Click Edit and find the financial details.
3. Set a default purchases account and tax rate.
4. Save.
5. Test with a new bill.

## Before you start

- Pick suppliers that always get the same account, like a power company or a fuel card.
- Check the tax rate for each supplier.
- Be ready for limits. A default is one account for the whole supplier.

## The manual way in Xero

1. Go to Contacts > Suppliers. Click the supplier.
2. Click Edit.
3. Open Financial details.
4. Under Purchases defaults, choose the Account and the Tax rate.
5. Click Save.
6. Repeat for each supplier that always uses the same account.

Limits to know:

- A default is one account for the supplier. It cannot cover an invoice with mixed costs.
- Xero applies defaults to bills created from email, web or mobile. Xero staff say it does not extend to e-invoicing or third-party apps. Users on Xero Product Ideas say bills from some integrations skip the defaults.
- Defaults do not update when your coding changes.
- Bank reconciliation also uses the default account, so a wrong default shows up there too.

## The Pulsify way

1. Connect Xero. Pulsify keeps a copy of your suppliers, accounts and tax rates, refreshed every hour.
2. Forward an invoice. Pulsify reads each printed row as a line.
3. Pulsify sets an account on each line from how that supplier's recent bills were coded in Xero. It also sets the tax code from the supplier's default purchase tax rate, then from their history.
4. Check the lines in the review screen and fix any that are wrong.
5. Approve. Pulsify creates the bill in Xero. Next time Pulsify uses your fix.

So you do not set defaults by hand. The coding follows what you have been doing.

## Worked example

Example Electricity Pty Ltd sends a monthly bill with two lines.

| Line | Xero default | What Pulsify picks |
|---|---|---|
| Electricity usage | Utilities | Utilities (last 20 bills) |
| Solar feed-in credit | Utilities | Solar Income (from past bills) |

A Xero default gives both lines "Utilities". Pulsify codes each line from the history, so the credit lands on its own account.

## Common mistakes

- Setting a default for a supplier whose invoices vary. Wrong defaults are quiet and spread.
- Leaving the default tax rate blank. The bill then needs a rate on every line.
- Assuming a default applies to bills that come in through an app. Test it first.

## Next step

[Try an invoice](https://app.pulsify.tech/sign-up) and see the account Pulsify picks for your own supplier. Read more on [automated line-item coding](/automated-line-item-coding/).

## Common questions

### Do contact defaults apply to every bill?

Xero says bills created from email, web or mobile pick up saved defaults. That does not extend to e-invoicing or third-party app creation. Users report that bills made through connected apps can skip them.

### Can a default cover freight and materials on the same invoice?

No. A default is one account for the supplier. If the invoice has several kinds of cost, each line still needs its own account. The default only gives you a starting point.

### What if the supplier's invoices change over time?

A saved default does not change on its own. You must update it by hand. Pulsify instead reads each supplier's recent bills, so the account follows what you have actually been coding.

Source: https://www.pulsify.tech/how-to/set-a-default-account-code-for-each-supplier-in-xero/ (last checked 2026-10-19)