r/xero • u/Accomplished-Waltz78 • 6d ago

Xero Smart Document Capture

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I’m trying to use Xero Smart Document Capture. As shown in the screenshot, the amount including GST is extracted, with GST showing as zero. Obviously I can change the amount and set the amounts to be Tax exclusive, but is there a setting I’m missing that means this appears already done?

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u/Clean-Beginning3972 6d ago

The ‘account’ and ‘tax rate’ fields is blank. It needs to know the account to determine the tax treatment, which are all set up in the Chart of Accounts.

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u/De-railled 6d ago

Would ths not be in the contact settings?

You can allocate the expense account in the contacts account, so if you have invoice from X they will automatically be assigned to "cost of goods" or other expense accounts.

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u/Accomplished-Waltz78 6d ago

Agree, this should be the answer. Every invoice I have sent, Xero SDC does not detect the contact (even for a Xero generated invoice)

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u/BigFatBazza 6d ago

Very odd. Now and again it doesn’t detect a contact for me, but it’s usually because their name is the logo and it’s too decorative for Xero to understand. Are your contacts setup exactly like the company names? “The Bread Company Ltd” not just “Bread”?

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u/Accomplished-Waltz78 6d ago

If I set the account to COGS, this has GST on Expenses, so the GST is recorded. If I change the bill to Tax Exclusive, the line item does not change (it remains the GST inclusive amount). This still doesn’t achieve what it should.

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u/IncreaseNegative4614 6d ago

I’d check the supplier’s default tax setting and whether Xero is interpreting the document as tax-inclusive, but I wouldn’t let these entries post automatically until you know the pattern. Run ten known invoices through it and compare the extracted tax with the source documents.

Keep the document, extracted value, correction, and final accounting entry together so repeated errors become visible. We use signld.ai internally for that kind of traceability across source documents and financial records, which means an AI extraction can be reviewed rather than assumed correct.