Xero Invoices Management

Overview

Invoices are the core transaction entity in Xero for billing and accounts payable. For MSPs, invoices represent two primary flows: sales invoices (ACCREC) for billing managed services clients, and supplier bills (ACCPAY) for vendor costs like software licenses, hardware purchases, and ISP charges.

Anti-triggers

• A quote or proposal the customer has not agreed to — an invoice is a

demand for payment, not an offer; use salesbuildr-quotes, connectwise-cpq-quotes, or pandadoc-documents.

• Collecting the money the invoice asks for — Xero records the receivable;

the hosted payment rail is alternative-payments-invoicing and recording the receipt is xero-payments.

• Aged receivables or revenue totals — do not aggregate invoice rows by

hand; use xero-reports.

• The same operation in QuickBooks — use qbo-invoices.
• An invoice raised outside the ledger — a PSA bills from

agreements and time, and a distributor bills the MSP for licences; neither posts to Xero until it is entered. Use halopsa-invoices, syncro-invoices, or pax8-invoices.

Core Concepts

Invoice Types

Invoice Status Lifecycle

DRAFT --> SUBMITTED --> AUTHORISED --> PAID
                                  \--> VOIDED
                                  \--> DELETED (draft only)

Invoice Numbering

Xero auto-generates sequential invoice numbers (e.g., INV-0001, INV-0002) or you can set custom numbers using the InvoiceNumber field. MSPs often use prefixes like MS- for managed services or PJ- for project invoices.

Key Fields

An invoice needs Type, a Contact with a valid ContactID, and at least one line item. Line items need Description, and — to reach AUTHORISED — UnitAmount and AccountCode. LineAmountTypes (Exclusive, Inclusive, NoTax) determines whether UnitAmount includes tax. SubTotal, TotalTax, Total, AmountDue, AmountPaid, and AmountCredited are read-only and calculated by Xero.

See references/fields.md for the complete field reference.

API Patterns

Both create and update go through POST — POST /Invoices creates (or batch-creates via an Invoices array), POST /Invoices/{InvoiceID} updates. There is no PATCH and no DELETE for authorised invoices; set Status: "VOIDED" instead.

curl -s -X POST "https://api.xero.com/api.xro/2.0/Invoices" \
  -H "Authorization: Bearer ${ACCESS_TOKEN}" \
  -H "xero-tenant-id: ${XERO_TENANT_ID}" \
  -H "Content-Type: application/json" \
  -d '{
    "Type": "ACCREC",
    "Contact": { "ContactID": "'${CONTACT_ID}'" },
    "Date": "2026-03-01T00:00:00",
    "DueDate": "2026-03-31T00:00:00",
    "LineAmountTypes": "Exclusive",
    "Reference": "March 2026 Managed Services",
    "LineItems": [
      { "Description": "Monthly Managed Services (25 endpoints)", "Quantity": 1, "UnitAmount": 2500.00, "AccountCode": "200", "TaxType": "OUTPUT" }
    ],
    "Status": "DRAFT"
  }'

Filtering uses the where query parameter with URL-encoded expressions — Type=="ACCREC", AmountDue>0, Contact.ContactID==guid("..."), Date>=DateTime(2026,3,1). Add ?summarizeErrors=false to batch requests to get per-invoice errors instead of a single aggregate failure.

See references/api.md for the full request catalog (filters, bills, void, batch, credit notes) and the endpoint reference.

Common Workflows

Monthly MSP Billing Cycle

1. Generate invoices for all managed services clients (1st of the month) — batch-create as DRAFT
2. Review drafts for accuracy
3. Authorize invoices to finalize
4. Email invoices to clients via /Invoices/{InvoiceID}/Email
5. Track payments as they arrive
6. Follow up on overdue invoices (Status=="AUTHORISED" && DueDate < today)

Tracking Categories for Service-Line Reporting

Attach a Tracking array to each line item (Name/Option pairs like Department + Region) so P&L can be filtered by service line later.

Credit Notes for Service Adjustments

Partial credits go through /CreditNotes with Type: "ACCRECCREDIT" rather than editing the original invoice — the invoice stays intact for audit.

Find Unbilled Clients

Compare the set of active customer contacts against the Contact.ContactID values on ACCREC invoices in the billing period.

See references/examples.md for working JavaScript implementations of these workflows.

Error Handling

Common API Errors

Validation Errors

Validation failures return HTTP 200 with the error attached to the invoice object — check HasErrors on every returned invoice rather than relying on the status code:

{
  "Invoices": [
    {
      "InvoiceID": "00000000-0000-0000-0000-000000000000",
      "HasErrors": true,
      "ValidationErrors": [
        { "Message": "Account code '999' is not a valid code for this document." }
      ]
    }
  ]
}

Gotchas

• Validation failures look like successes - A 200 response can still contain HasErrors: true; parse per-invoice results, especially in batches.
• Create as DRAFT, authorise separately - AUTHORISED invoices cannot be edited, only voided; a bad batch created straight to AUTHORISED means voiding and re-issuing.
• Void, never delete - DELETED is only available for drafts. Voiding preserves the audit trail and the invoice number.
• Batch without `summarizeErrors=false` hides detail - The default collapses batch failures into one message, so you cannot tell which invoice broke.
• `InvoiceNumber` collides silently across types - Reusing a number a voided invoice already consumed still fails; omit the field to let Xero assign one.
• Line item detail drives reporting - Splitting services, licenses, and add-ons into separate lines with consistent account codes is what makes downstream P&L and margin analysis usable.

Related Skills

• Xero Contacts - Managing invoice recipients
• Xero Payments - Recording payments against invoices
• Xero Accounts - GL account codes for line items
• Xero Reports - Financial reporting on invoices
• Xero API Patterns - API reference