Synder’s Xero Summary Sync makes it easy to track taxes on your sales, ensuring accurate financial reporting and compliance with local regulations.
By default, Synder posts summarized entries to Xero as invoices and credit notes (as well as corresponding payments), each with lines representing categories such as product sales, shipping, discounts, and tax.
If tax tracking isn’t enabled, tax amounts are simply mapped to accounts in Xero and can be split by region, but they won’t appear in Xero’s built-in tax reports.
When tax tracking is enabled, Synder records taxes in a format that Xero recognizes, ensuring they’re included in Xero’s tax summary and liability reports.
Enabling tax tracking
1. Open Synder and go to Xero Summary Sync settings:
Log into your Synder account, then navigate to Settings.
2. Enable tax tracking:
In the Mapping tab, turn on the Enable Tax Tracking toggle.
3. Select the tax rate:
Choose the default zero-rated (0%) tax rate. This will be used for non-tax lines (explained below).
4. Map your sales tax rates:
Go to Mapping, where you’ll now see a new column for tax mapping. For each Sales Tax payable line, map your actual sales tax rates from your platform to the corresponding Xero tax rates.
Note: Only Sales Tax payable lines can be mapped to Xero tax rates. All other lines, such as shipping, discounts, etc., will automatically use your selected zero-rated tax rate.
How it works
Example:
Shopify order:
- Item total: $146.00 CAD
- Tax (GST 5%): $7.30 CAD
- Order total: $153.30 CAD
With tax tracking enabled:
- For each tax line, Synder creates two lines in Xero:
- Taxable Sales Amount with your mapped tax rate (e.g., GST 5%);
- Offsetting Line with the default zero-rated tax rate.
This way, Synder posts not just the tax amount but the taxable sales amount that generated it.
- The taxable sales amount is calculated using the formula:
Tax amount ÷ Tax rate × 100 (e.g., $7.30 ÷ 5 × 100 = $146.00)
These two lines offset each other financially, keeping your income accurate while ensuring that Xero’s tax summary correctly includes your tax amounts.
- Result:
- Tax shows up correctly in Xero’s Tax Summary report.
- Your balance sheet displays tax amounts in the appropriate liability or clearing accounts.
Important notes
- Line amounts: Tax is always calculated as exclusive—Synder treats all amounts as net, before tax.
- Tax mapping: Only Output (sales) tax rates can be mapped. Input (purchase) tax rates are not supported for Xero Summary Sync.
- Zero-rated default: All lines not mapped as Sales Tax payable (e.g., shipping, discounts, non-taxable sales) will use your selected zero-rated tax rate, ensuring consistency in your tax reporting.
Reach out to Synder Team via online support chat, phone, or email with any questions you have – we’re always happy to help you!
