GST on prices and invoices can be handled differently, depending on whether you manage your prices in Xero or Upstock.
When managing prices in Xero
If you manage pricing in Xero, you can choose whether prices and invoices include GST. You can change this in Settings › Order settings
By default, we’ll set this option to be the same as your Xero settings, but you can change it at any time.
Once you have connected to Xero, it’s a good idea to place a test order and make sure the invoice is raised as expected.
When managing prices in Upstock
If you manage pricing in Upstock, you’ll notice that all prices exclude GST.
We do this to make pricing clear and consistent to people purchasing goods from different suppliers. Also, for business to business transactions, GST is less important when considering prices.
Invoices will be raised GST exclusive. In your order settings, the GST inclusive option will no longer be available.
What happens if my prices include GST in Xero?
If you choose to manage pricing in Upstock, we’ll import your Xero prices, then convert them in Upstock to exclude GST.
It’s important to note that this may result in small rounding differences compared to your inclusive prices in Xero.
Example of rounding differences
In this example, the product in Xero is $15 including GST.
When this is converted to GST exclusive using the IRD's recommended formula, the result is $13.0434783. Obviously it’s not practical to charge customers this amount, so we round it to $13.04.
If a single item is sold, there’s no difference. $13.04 excluding GST is $15 including GST.
If 10 items are sold, you’ll see a small rounding difference. $130.40 excluding GST is $149.96 including GST. That's $0.04 less than the original, inclusive price.
Unfortunately, there is no way to avoid this rounding difference, due to the formula used to convert prices.
Need help with pricing?
If you have any questions or need any help getting set up, please get in touch — we’d love to hear from you!