Sending Contractor Invoices to Xero

Our standard Xero Integration allows you to send Recipient Created Tax Invoices as Draft Purchases to Xero, separate from your Xero Payroll or KeyPay pay runs. Here's how:

Create a Self-Employed Contractor

To set up a self-employed contractor in Karmly, head to Manage > People, select the Resource and apply the following settings:

• Business - This checkbox must be ticked - this will make them a self-employed contractor in Karmly so that they appear in the Invoice Summary. 
• Business Tax Number - If they're sales tax registered their Business Tax Number must be entered.
• Trading Name - May be entered if applicable. 
• Recipient Created Invoices - Enable this setting if they should be able to access Recipient Created Tax Invoices (RCTIs).

Create a Contractor Invoice

If you have contractors set up as Businesses you can create a payable invoice for them from the Invoice Summary screen under the Pay tab. Here you will see all your resources who are set up as a business in Karmly and have time recorded in the selected period to review and pay.

You can use the Select Period drop-down to select a custom period, or all overdue (prior to the Current Payable period) payable time.

If you then tick All Businesses and click New Invoice Batch you can quickly and easily create invoices for the specified period. 

Send to Xero

Once you have created the draft invoices they will appear on the payments screen under the draft tab.

Invoices can be sent to Xero by clicking the green Send to Xero button or ticking the invoice and selecting Send from the option menu in the top right corner.

Once your invoice has been successfully sent to Xero it will appear in the Sent tab grouped by invoice date.

Your invoice is now available to view and approve in Xero from Accounts > Purchases > Draft.

Your contractors can view their RCTIs in their Karmly login when they navigate to the Payslips tab.

Full support material for Xero can be found here.