# How to use Xero's built-in document capture and when line items need more

Send the bill to Xero by email, upload or the app. Xero reads it and queues it in Documents. Review the details, create the bill, then check the account on each line.

## Short answer

1. Send the bill to Xero by email, upload or the app.
2. Open Documents and review what Xero read.
3. Create the draft bill.
4. Check the account, tax and tracking on each line.

## Before you start

- A Xero organisation on a plan that includes Smart Document Capture. Xero says it is available on its small business pricing plans. Some plans list a basic version. Check your plan.
- Your Xero organisation's Files address for email forwarding.
- Know that Smart Document Capture is for Xero only.

Xero renamed Files to Documents on 18 September 2026 and moved it to the Accounting menu. Source: [Xero blog, Files is now called Documents](https://blog.xero.com/product-updates/files-now-called-documents/).

## The manual way in Xero

1. **Send the document.** You can forward an email to your organisation's Files address, upload to Documents or photograph it with the Xero Accounting app. Xero accepts receipts, invoices and bills as JPG, PNG, Word and PDF files. Source: [Xero, Smart Document Capture](https://www.xero.com/au/accounting-software/store-files/).
2. **Open Documents.** Go to Accounting > Documents. Xero reads the file and queues it for your review. Xero says this takes about 30 seconds. Source: [Xero blog, Faster record-keeping with smart document capture](https://blog.xero.com/product-updates/smart-document-capture/).
3. **Review.** Check the details Xero read. Xero says you review and approve every extraction and match.
4. **Create the bill.** Pick Bills as the type. Xero creates a draft bill on the Bills page with the lines it read.
5. **Check each line.** Open the draft. Check the account, the tax rate and the tracking category on every line.
6. **Approve the bill.** Use your normal approval steps in Xero.

What Xero says it does:

- Reads itemised documents line by line.
- Matches a document to an existing transaction.
- Learns your patterns over time.
- Lists automatic local tax rate extraction and credit note handling among recent additions.

Where it stops, per Xero's own pages:

- It works inside Xero only.
- Email is by forwarding to your Files address. It does not connect to your inbox.
- Australia and New Zealand were listed as rolling out in beta in July 2026.
- Xero lists bank statement extraction and document chasing as coming.

## When line items need more

Xero's capture gets the bill into Xero. These jobs come after it:

- Choosing the right account for each line, every time, for each supplier
- Checking lines against a purchase order, including partial deliveries
- Checking the supplier's ABN and bank details
- Routing the bill to the right approver by amount, supplier or job
- Flagging a duplicate

Some teams do these by hand in Xero. Others add a tool.

## The Pulsify way

1. Forward the invoice to your Pulsify address. Pulsify reads each line and codes the account and GST per line. It learns from how that supplier was coded before.
2. Pulsify matches the lines to the PO, including partial deliveries. It checks for duplicates, a changed bank account and the ABN.
3. The bill goes to the right approver by amount, supplier, account or job.
4. After approval the bill is created in Xero with the source file attached.

Both can sit side by side. Xero's capture handles receipts and documents. Pulsify handles supplier bills.

## Worked example

Example Plumbing Supplies sends a 14-line invoice for $4,950 including GST. Xero reads the lines and creates a draft. You check the account and tax rate on each of the 14 lines. Twelve are right. Two need a different account. You fix them and approve the bill.

The check takes a few minutes per bill. It adds up when you have 200 bills a month.

## Common mistakes

- **Approving the draft without opening the lines.** The total can be right while the accounts are wrong.
- **Skipping the review step.** Xero says you review every extraction. Do it.
- **Assuming the tax rate is right.** Check it on each line.

## Next step

[Try an invoice](https://app.pulsify.tech/sign-up) and compare the lines it reads with your own. Read the [get invoices in guide](/guides/get-invoices-in/) and the [email inbox guide](/guides/email-inbox/). See also the [automated line item coding page](/automated-line-item-coding/) and the post on [OCR software for accounts payable](/blog/best-ocr-software-for-accounts-payable-australia/).

## Common questions

### Does Xero read line items from a bill?

Xero says Smart Document Capture reads itemised documents line by line. You still choose or check the account and tracking on each line. Check the draft bill before you approve it.

### Does Xero capture GST from a bill?

Xero's 18 September 2026 update lists automatic local tax rate extraction among recent additions. Check the tax rate on each line of the draft. You approve every extraction.

### Can Xero capture supplier credit notes?

Xero lists credit note handling among recent additions to Smart Document Capture. Review the draft credit note and allocate it to the right bill. Check Xero's current help for the steps in your region.

Source: https://www.pulsify.tech/how-to/use-xeros-built-in-document-capture-and-when-line-items-need-more/ (last checked 2026-10-19)