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Configuring tax for purchase orders

This guide will run you through how to set up your Current RMS tax to ensure that posts to Xero.

Charlotte Price avatar
Written by Charlotte Price
Updated over a week ago

Now that you can post your purchase orders to Xero, let’s help you configure tax for your purchase orders so that it pulls through to Xero.

First head to System Setup > Tax > Product Tax Class.

Here you will have to create a new Product Tax Class just for your Purchase Orders.

You will then need to visit System Setup > Tax > Tax Rates to create a new rate that will later be mapped in your integration setup.

Head back to System Setup > Tax Rule and add new Tax Rule for your Purchase Orders. Once this is done you can then head back to System Setup > Tax Rule to link your new Tax Class, new Tax Rate and Organization Tax Class together. This is what will be applied to your purchase orders when posted to Xero.

Next, set up a Purchase Tax Class for your text items in System Preferences > Free Text Item

This will allow you to set a default tax for your Purchase Order text items.

With that set up, you can then head to System Setup > Integrations > Xero to confirm your tax, cost, and revenue mapping is correct in line with your Xero accounts.

If you are happy with your mapping, then you can export your products and services. Add the Purchase Tax Class to the export, then reimport back into the system. You are now ready to build your purchase orders.


Do ensure that all your integration settings are mapped correctly as Xero will apply the tax that is linked to your chosen chart of accounts. You can override this by editing the posted Xero invoice and changing your tax.

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