Xero Sales Invoices Flagged for Tax Adjustment Due to Rounding - Stack Overflow

Over the past couple of months, some of our users have reported an issue where sales invoices posted from SENPOS to Xero are being flagged for having a tax adjustment, requiring manual intervention to correct.

• The issue occurs when rounding is 6 cents or more.
• These invoices represent daily takings, with multiple cash sales contributing to the total.
• When opening the sales invoice in Xero, users see an alert prompting them to correct the problem along with a link to strategies to solve the problem:
  • Switch to Classic Invoicing and back, or
  • Change the amounts to Tax Exclusive and back. Screenshot of sales invoice alert

This has become a frequent frustration for our users, leading to complaints.

Below is a sample of the payload showing the line items of a flagged invoice.

• How should we be handling rounding in sales invoices to avoid these tax adjustment alerts?
• Is there a preferred way to structure rounding adjustments in Xero to prevent manual intervention?
• Has anyone else encountered this issue, and if so, how have you handled it?

<LineAmountTypes>Inclusive</LineAmountTypes>
<LineItems>
  <LineItem>
    <Description>Coffee Shop Food</Description>
    <UnitAmount>10.74</UnitAmount>
    <TaxType>OUTPUT</TaxType>
    <TaxAmount>0.99</TaxAmount>
    <LineAmount>10.74</LineAmount>
    <AccountCode>584</AccountCode>
    <Quantity>1.0000</Quantity>
    <LineItemID>8035b64a-bcd5-4bb1-a436-6464163fb7bc</LineItemID>
    <AccountID>ef54b3b0-88fc-4e0a-9d3f-7d8196b249f7</AccountID>
  </LineItem>
  <LineItem>
    <Description>Cash</Description>
    <UnitAmount>-10.80</UnitAmount>
    <TaxType>BASEXCLUDED</TaxType>
    <TaxAmount>0.00</TaxAmount>
    <LineAmount>-10.80</LineAmount>
    <AccountCode>521</AccountCode>
    <Quantity>1.0000</Quantity>
    <LineItemID>8d6a1597-7b94-4c86-8609-0a55c454c649</LineItemID>
    <AccountID>8ba6a37e-b789-40d6-baca-9f9218176578</AccountID>
  </LineItem>
  <LineItem>
    <Description>Rounding</Description>
    <UnitAmount>0.06</UnitAmount>
    <TaxType>BASEXCLUDED</TaxType>
    <TaxAmount>0.00</TaxAmount>
    <LineAmount>0.06</LineAmount>
    <AccountCode>860</AccountCode>
    <Quantity>1.0000</Quantity>
    <LineItemID>9ae1b7ff-5e82-4a12-8661-e37ecf5d3710</LineItemID>
    <AccountID>acb61721-96cb-43ec-a5ab-aff1a67dbe96</AccountID>
  </LineItem>
</LineItems>