If you are a subcontractor doing construction work for a contractor, you’ll probably need to make a CIS deduction on your Sales Invoices. Xero will automatically calculate the CIS deduction for a Sales Invoice (Accounts Receivable Invoice) if two conditions are met:
The Organisation is CIS-enabled. You can check whether the Organisation is CIS-enabled in the Organisation CIS Settings.
At least one line item contains the "CIS Labour Income" system account.
This is how to create a Sales Invoice with CIS deduction in ApprovalMax:
On the main page, click on the
button and select "Sales Invoice" for your Organisation, then click on
On the item level, use the CIS account:
The CIS deduction will be calculated automatically based on the rate specified in the Organisation's financial settings. It doesn't have an impact on the Sales Invoice TOTAL.
Submit the Sales Invoice for approval.
This is how to create a Sales Invoice with CIS deduction in Xero and then push it to ApprovalMax.
The CIS deduction is calculated based on the Organisation settings and does not have an impact on the total amount.
Set up a Sales Invoice workflow in ApprovalMax.
Create a Sales Invoice in Xero, specify the CIS account for Accounts Receivable, save the request and submit it for approval:
Sync the requests from your Xero Organisation to ApprovalMax:
The CIS deduction will be calculated automatically based on the rate specified in the Organisation's financial settings. It doesn't have an impact on the Sales Invoice TOTAL.