Enter your idea

Hubdoc's integration with Xero can be great when it enables automatic reconciliation of an invoice with accounts in Xero. However, if any portion of an invoice is allocated to an account in Xero that has a 0% tax rate, Publishing to Xero fails with the error message "Validation Err. Line item tax amounts do not total to document tax amount".

An example of where this occurs is where 50% of a transaction is deemed a business expense, while 50% of the transaction has a private use component, where the private use component is treated as personal drawings, e.g., the business is paying the full home broadband invoice for the home from which the company director/owner works full time, but only 50% of this is deemed as a tax deductible business expense. For the half of the invoice that is treated as personal drawings, the tax component cannot be claimed by the business. Therefore, while the invoice shows e.g., $10.42 in tax, only $5.21 of tax is claimed in Xero. This is a correct reconciliation, but fails the Hubdoc-Xero validation because the tax amounts do not match.

Hubdoc needs a way to allocate tax amounts within a 0% transaction line so that it passes the validation while still being claimed as part of the overall transaction. It appears as though there is a facility for this, because as per the attached screenshot there is a line item for "Includes No GST 0%" but this is not correctly allocated by Hubdoc in attempting the reconciliation.