Multi-Company Tax Case Study

The Business Problem

As iTS restructured, customers moved between operating companies. The invoicing rules had to keep up. iTS Europe needed different tax rates for sales and for purchases. A customer's VAT number had to be recorded in the right place in Xero. Old company connections in Spain, Germany and France had to be retired without leaving invoices stranded. If a contact had been disabled in Xero, an invoice for that customer would fail without any warning.

The Solution

wildesoft.net reworked the Xero integration for the new structure:

• Operating companies: orders now go to the correct company, including the move of Service2Sales to iTS Benelux.
• iTS Europe tax: tax rates now come from a dedicated field. Input and output tax are applied correctly, and the right Xero contact is used for each currency.
• VAT numbers: customers' VAT numbers now become their account numbers in Xero.
• Old connections: the Spanish, German and French connections were removed cleanly.
• Disabled contacts: these are now detected and reported.

Each change was tested against iTS's real accounts and signed off by its finance team before going live.

The Result

Invoices land in the right company with the right tax treatment, and finance no longer has to fix tax codes by hand. When something does need attention, finance is told straight away.

See all case studies for Xero Invoicing