A mismatch between the Xero invoices and the IR 345 total is usually caused by one of the following:
- one or more of the pays in the month have been reversed in FlexiTime and the payroll invoices in Xero were not adjusted
- one or more invoices in Xero have been edited.
When a pay is finalised in FlexiTime, Accounts Payable invoices are created in Xero for each payment to be made in the pay, including for each employee, and one invoice is created for Inland Revenue. When payments are made, these invoices can be reconciled against your bank statement lines. Once an invoice is sent to Xero, FlexiTime has no visibility or control over the invoice. If a pay is reversed in FlexiTime, the Xero invoices for the employee and Inland Revenue must be manually deleted or adjusted in Xero. If a payroll invoice is manually edited in Xero, FlexiTime won't know about it.
FlexiTime recommends using the Pay Summary Report to reconcile each paydate with its corresponding Xero invoices. You can also view the invoice history in Xero to see if it has been edited, or select the All invoice view in Xero and search for Inland Revenue to see if any invoices have been deleted.