This guide explains how to configure sales tax tracking in Synder Summary Sync when posting summaries to Xero.
Use this if:
- You use Xero Summary Sync
- You need to record tax amounts in liability accounts.
- You need sales tax to appear in Xero tax reports.
- You require tax reporting for compliance or filing.
Do not use this if you are using Per-Transaction Sync.
Tax configuration depends on whether tax should appear in Xero’s built-in tax reports. When you enable tax tracking, Synder adjusts how it creates entries on your accounting software. For each tax amount, Synder creates:
- A Taxable Sales Amount line with the mapped tax code.
- An Offsetting line with the zero-rated tax code.
This ensures that:
- Taxable revenue is reported correctly.
- Tax appears in the accounting platform tax reports.
- Income or tax amount is not overstated.
And gives you the ability to choose one of the following configurations:
- Option 1 — Tax tracking enabled
- Option 2 — Tax tracking disabled
Option 1: Tax Tracking Enabled
Use this setup if you want tax to appear in Xero’s built-in tax reports.
Step 1: Enable Tax Codes
- Go to Settings.
- Move to Mapping tab.
- Scroll down to Tax codes.
- Enable tax codes.
- Assign a default zero-rated tax code.
Synder uses the default zero-rated tax code as a fallback zero-rated tax for non–sales-tax-payable mapping lines. This setup allows Synder to apply the tax calculation logic in Summary mode.
Step 2: Map Sales Tax Rates
- Open Mappings list from the left-side menu.
- Assign tax codes to Sales Tax Payable lines.
- Map Sales Tax Payable lines to preferred accounts.
Note: Only Sales Tax Payable lines can be mapped to Xero tax rates. All other lines (shipping, discounts, etc.) will automatically use the selected zero-rated tax rate.
New summaries will reflect the tax codes. Rebuild the existing summaries to reflect the updated mapping. Refer to this guide on how to rebuild.
What you’ll see in Xero invoice
Example:
- Item total: 146 CAD
- Tax (5% GST): 7.30 CAD
- Total: 153.30 CAD
Result in Xero:
- Taxable sales: $146.00 (GST 5%)
- Offsetting zero-rated line
- Tax liability: $7.30
Example Invoice (Tax Tracking Enabled)
Tax shows up correctly in Xero’s Tax Summary report.
Balance Sheet view:
- Tax appears under the selected liability or clearing account.
Option 2: Tax Tracking Disabled
Use this setup if you do not need tax reporting in Xero and only want to record liability balances.
Tax tracking is disabled by default. With this feature disabled:
- Synder posts total tax directly to Sales Tax Payable (liability) account.
- Recommended account type: Current Liabilities.
- No tax codes are applied.
- Tax will NOT appear in Xero’s built-in tax reports
- Balance Sheet still reflects the tax owed correctly.
Example Invoice (Tax Tracking Disabled)
Balance Sheet reflecting the correct tax owed
Important Notes
- For Multi-State Mapping, enable Group by region or use the Groups feature for more granular mapping. Refer to this guide for step-by-step instructions on how to set up mapping groups.
After enabling Group by region, you may encounter following regions:
- “Unknown” – Missing or unrecognized state/country information. Use the manual groups feature to assign taxes to such mapping lines based on other available conditions in transactions.
- “N/A” – No shipping address is available(e.g., for adjustments).
- Synder always calculates tax as exclusive and treats all amounts as net (before tax).
- You can map only Output (sales) tax rates. Xero Summary Sync does not support Input (purchase) tax rates.
Consider one of the following options:
- Account for taxes on expenses manually. Synder records total fees in synced journal entries. Calculate tax separately based on the applicable percentage.
- Use the per-transaction synchronization mode to apply taxes to expenses/fees. Refer to this guide to understand how Synder handles taxes on fees in this sync mode.
FAQ
- I don’t see the desired tax code in the dropdown to choose. Why?
This can happen if the tax code is not set up in Xero. Create the tax code in Xero first. Then select it in Synder mapping. - How does Synder calculate the taxable amount for a summary entry?
Synder uses this formula: Taxable sales amount = Tax amount ÷ Tax rate × 100.
So if tax is $7.30 at 5%, the taxable amount becomes $146.00.
- Will tax rates be updated for historical summaries?
Tax codes will only be applied to newly generated summaries after enabling the setting. Rebuild the existing summaries to reflect the updates. - Why don’t my taxes appear in Xero tax reports?
If Tax Tracking is disabled in Synder, no tax codes are applied to summary lines. Taxes will not appear in Xero Tax Reports. Enable tax tracking in Synder if tax reporting in Xero is required.
Reach out to Synder Team via online support chat or email with any questions you have – we are always happy to help you!
