How to split a bill across tracking categories in Xero

Short answer

1. Open the bill in Business > Bills to pay.
2. Add one line for each tracking option that shares the cost.
3. Type each option’s share of the amount on its line.
4. Pick the tracking option on each line.
5. Check the lines add up to the supplier’s total.

Before you start

• Set up your tracking categories. Xero lets you keep two active at a time.
• Work out each share in dollars before you type. Xero does not split by percentage on a bill.
• Check the bill total, including GST, on the supplier’s invoice.

The manual way in Xero

1. Go to Business > Bills to pay. Open the draft bill, or choose New bill and enter the supplier, dates and bill number.
2. Look at the line items. Each active tracking category shows as a column. If you do not see one, add the category under Settings > General settings > Tracking categories. Xero Central has the full steps in “Set up tracking categories and options”.
3. Enter the first line. Add the description, the account and the tax rate. Type this option’s share in the amount.
4. Add another line for the next option. Use the same description, account and tax rate. Type its share.
5. Repeat for every option that shares the cost.
6. Click the tracking cell on each line and choose the option for that line. Xero Central covers this in “Assign tracking options to transactions”.
7. Check the bill total at the bottom. It must match the supplier’s invoice. Save the bill, or submit it for approval.

Limits to know:

• A line holds one option per category. You cannot tag one line with two options from the same category.
• There is no percentage field. You do the sums.
• Xero does not have a bulk way to add tracking options across many bill lines. This is an open request on Xero Product Ideas.
• If you miss a line, Xero has a Find and recode tool that can add a tracking option to lines that have none.

The Pulsify way

Pulsify reads the bill and puts every line in a review screen with tracking columns. These come from the categories already in Xero.

1. Forward the invoice to your Pulsify address. Pulsify reads each printed row as a line and codes the account and GST on each.
2. Open the bill in the review screen. Each line has a column for each tracking category.
3. Set the option on each line. To put the same option on every line, use Bulk edit above the line items.
4. Optional: turn on Tracking category pre-selection in Company settings > General > Processing. Pulsify then fills each line with the option you used most for that supplier and account. It is off by default.
5. Approve. Pulsify creates the bill in Xero with the tracking on every line.

Tracking is set per line in Pulsify too. Pulsify does not split one line by percentage across options.

Worked example

Example Plumbing Supplies sends an invoice for $6,600 including GST. It is a bulk order for six jobs. Your tracking category is “Job” with one option per job.

Line	Job option	Amount incl. GST
Copper pipe and fittings	Job 101	$1,100.00
Copper pipe and fittings	Job 102	$1,100.00
Copper pipe and fittings	Job 103	$1,100.00
Copper pipe and fittings	Job 104	$1,100.00
Copper pipe and fittings	Job 105	$1,100.00
Copper pipe and fittings	Job 106	$1,100.00

Six lines of $1,100.00 add up to $6,600.00. GST on each line is $100.00.

If the total does not divide evenly, put the spare cents on the last line so the bill total still matches the invoice.

Common mistakes

• Splitting the pre-GST amount on some lines and the GST-inclusive amount on others. Choose one and check the amount type at the top of the bill.
• Leaving a tracking cell blank on one line. That line then drops out of your tracking reports.
• Changing the bill total to make the lines fit. The total must match the supplier’s invoice.

Next step

Try an invoice and see the tracking columns on your own bill. For how Pulsify codes each line, see automated line-item coding. To connect Xero, follow the connect Xero or MYOB guide.