Overview
The Zamp integration with Xero is able to calculate taxes for invoices and Credit Notes, and post them to Zamp. Follow the steps below to calculate taxes on both types of transactions.
Creating Invoices
Hit New Invoice.
Select a Contact.
Designate a Due date.
Select your line items, and an Account.
You don’t need to select a tax rate or enter a tax amount. Zamp will handle calculations.
Save & close the invoice.
After waiting a few seconds, reopen the invoice.
Total sales tax will now contain the Zamp-calculated tax amount, and the transaction will be posted to your Zamp account.
The tax rate will also be populated with the overall tax rate used for the entire transaction. See the below note for an important disclaimer for this rate.
Creating Credit Notes
Click New Credit Note
Select a Contact
Select your item(s) that are being refunded.
Similar to invoices, you do not need to edit the tax rate or enter a tax amount.
Click Save to trigger the calculation and posting process.
The credit note will be posted to Zamp as a negative transaction with its own tax calculation
Checking if Transactions Posted
How do you check if Zamp was able to calculate tax on your invoice or credit note?
Under History and notes, look for logs indicating the Xero API was triggered with the below detail:
Received through the Xero API from Zamp Tax(UAT New)
Item Rates and Tax Amounts
Due to a limitation with how Xero allows tax providers to calculate taxes on a given invoice, Zamp will create tax rates for transactions in accordance to the rates provided by our tax engine.
What does this mean?
If there are multiple items on an invoice with multiple levels of tax rates (i.e. State, county, city, etc), tax rates across items will match, and amounts for each item will use the same rate.
Example
If I have a transaction for Chicago, Illinois for 3 items, the tax rate and amount distribution will look a bit different:
Item | Tax Code | Cost | Tax Rate (Zamp) | Tax Amount (Zamp) | Tax Rate ( Xero) | Tax Amount (Xero) |
Wireless Mouse | R_TPP | $100 | 10.25% | $10.25 | 3.4167% | $3.42 |
Courier Service | Z-SRV500 | $100 | 0% | $0.00 | 3.4167% | $3.42 |
Installation Service | R_SRV | $100 | 0% | $0.00 | 3.4167% | $3.42 |
Reach out to your Zamp representative if you have questions about the above.