Xero Tax (UK) | Warning when reclassifying assets and liabilities that Xero automatically reverses the balances
I've had an issue when filing accounts on Xero tax that I reclassified an asset as a liability, and it would be helpful to have a warning pop up to let us know that Xero automatically reverses them. It caused significant issues not realising this.
Stewart Anderson
shared this idea
Hey Stewart, this is now possible by using the new Company Accounts option instead of classic Xero Tax. Company Accounts doesn’t automatically move negative asset or liability balances to the opposite side of the Statement of Financial Position. The balance remains in the group determined by its report-code mapping, which allows balances such as provisions to remain with debtors where appropriate.
If a balance does need to move when it becomes negative, you can configure a Switch Rule, similar to the switch option available in Xero reports:
- Open the filing in Company Accounts.
- Open the Statement of Financial Position.
- Select the relevant statement group and open the Switch Rules panel.
- Choose the source group and the destination group.
- Select the specific report code in the destination group.
- Set the rule to move negative items or the entire group, then save it.
Switch Rules apply separately to each accounting period, and Xero automatically handles the sign conversion when a balance moves between asset, liability or equity groups. If you want the balance to remain in its original group, no Switch Rule is needed.
Switch Rules are available for the Statement of Financial Position only, not the Profit and Loss. 😊
