The main difference between the two tax settings is how we export data to Xero.

  • If you use 'Let Xero calculate tax', please make sure the amounts in bold and the tax code in the dropdown are correct.

  • If you use 'Send exact tax amount', please always make sure NET and TAX are correct. 

Pro Tip: Datamolino exports only the amounts in bold - these are the ones that need your attention when reviewing your documents.

Let Xero calculate tax 

This is the default tax setting in Datamolino.

With this setting, Datamolino exports only TOTAL or NET for line items (amounts in bold). The rest is calculated by Xero based on the tax code you select from a drop-down.

Before exporting all you need to do is review the amounts in bold and the tax code selected from the drop-down. The rest is ignored when exporting, so there is no need to worry if we didn’t capture tax values. 

Exporting 'Invoice Total'

  • In this case, Datamolino exports TOTAL and Xero calculate NET and TAX based on the tax setting selected from the dropdown. 

  • Your amounts are then shown in Xero drafts as 'tax inclusive'. Once you approve the draft and it is in 'Awaiting Payment', Xero automatically shows all amounts as 'tax exclusive.

Exporting 'Line items'

  • Most invoices list line items as NET values. Some lines do not contain tax rates as a percentage so Datamolino cannot calculate the TOTAL. 

  • In these cases, Datamolino sends the NET value of the line item to Xero as 'tax exclusive'. The rest is calculated by Xero after exporting. 

Send Exact Tax Amount

There are some instances when ‘Let Xero calculate’ might not work, so we have introduced ‘Send exact tax amount’.

An example use case for this setting is when a supplier rounds numbers differently than Xero, which may lead to small differences (usually only 1p difference). If numbers calculated by Xero don't match numbers sent by Datamolino, Xero makes the tax adjustment. Using the previous example, Xero would make 1p tax adjustment to match the amounts sent by Datamolino.

With 'Send exact tax amount', please always make sure NET and TAX are correct. Also, the tax code in the drop-down should match the tax rate on the invoice.

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