Nominal codes Square uses to integrate with Xero

[johnkiran]

After the initial set up process to integrate Square with Xero, how do I change the nominal codes square uses to create the invoices in Xero? I also want to use a NO VAT code as opposed to 0% VAT code so that service charge does not appear as a 0% sale

[Summer2024 · Accepted solution]

Hi, @johnkiran !

I'm not super familiar with the Xero + Square integration, but I did some research and this is what I could find as far as making this work. I've listed the steps below! 

To change the nominal codes Square uses in Xero:

Log in to your Square Dashboard
Go to Account & Settings > Business > Integrations

Find and open the Xero integration.

1. Open your Xero Integration Settings
   You should see:

   • Sales 

   • Fees 

   • Bank Accounts 

2. Update the Account Mappings
   For each type of transaction (sales, fees, refunds, etc.), choose the Xero chart of accounts code you want Square to use.
   Change it from the default to your preferred nominal code.

To use a NO VAT code instead of 0% VAT:

1. Log in to Xero

2. Go to Settings > Chart of Accounts and make sure your “NO VAT” tax rate is set up correctly.

3. Back in the Square to Xero integration settings, find the Tax Mapping section.

4. Change the mapping from 0% VAT to your NO VAT tax rate.

Let me know if this works! 

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