Getting paid, 29 October 2026
Matching supplier invoices to jobs in Xero
To match supplier invoices to jobs in Xero, give every job a code, put that code on every merchant order, and when the bill arrives assign each line to the job with a tracking category (any plan) or to a project (Ultimate plan). Split mixed bills line by line. Then run a profit and loss report filtered by job each week.
Why do supplier bills need to go against jobs?
Because materials are often the biggest cost on a job, and without them coded you can't tell which jobs made money. Most firms code supplier bills to a single "Materials" account. That keeps the accountant happy but tells you nothing about the Henley Road kitchen versus the Mill Lane extension.
The owner of a renovation builder we work with didn't know whether he was making money on jobs until his supplier bills started going into Xero against each job automatically. Cost per job was the feature he valued most.
Tracking categories or Projects?
Both work. Tracking categories are lighter and are on every plan; Projects gives a fuller job view but is listed only on Xero's Ultimate plan as of October 2026.
| Tracking categories | Xero Projects | |
|---|---|---|
| Plans | All UK plans | Listed on Ultimate (£70 a month, 10 users) |
| What you tag | Lines on bills, invoices, bank transactions | Bills, spend money, expense claims, time |
| What you see | P&L and other reports filtered by job | Revenue, costs and margin per project, against budget |
| Labour | Only if wages are coded by job | Time tracked against the project |
| Suits | Firms that want job profit from existing books | Firms that also want time and budgets per job |
Prices are Xero's UK list prices excluding VAT, as of October 2026. Check Xero's pricing page for current offers.
It gives you a margin per job against a budget and pulls in time. Assign each bill and expense to the project as it's approved.
Add one option per job and tag every bill line. Run the P&L filtered by the Job category each week. Ask your accountant to set it up if you haven't before.
How do you set up jobs in Xero?
Set up the job list once and add to it every time you win work. With tracking categories, create one category called "Job" and add each job as an option. With Projects, create a project per job with its quote as the estimate.
- Pick a job code format.
Short and spoken easily over a counter: a number and street, like "14HEN", or a quote number.
- Create the category or project.
One "Job" tracking category with an option per job, or one project per job.
- Tell your merchants.
Ask each account to put your job code in the order reference field on every invoice.
- Forward merchant invoices to Xero.
Bills by email go straight to Hubdoc or your Xero bills inbox and become draft bills.
- Code each line on approval.
Pick the account (materials, plant hire) and the job. Split mixed bills.
- Archive finished jobs.
Keep them for reporting but stop them appearing in the drop-down.
How do you split one invoice across several jobs?
Code each line to its own job. One end-of-month merchant invoice often covers three jobs and some van stock. Here's how it breaks down.
Splitting a £1,422 merchant invoice across three jobs and van stock
Invoice total £1,422 including VAT at 20%. Each line coded to its job; VAT follows the line.
| Plasterboard and beads, ref 14HENJob: 14 Henley Road | £520.00 |
| Copper, fittings and valves, ref 7MILJob: 7 Mill Lane | £390.00 |
| Timber and fixings, ref 22ASHJob: 22 Ash Close | £215.00 |
| Sealant, screws and blades, ref STOCKOverheads: van stock | £60.00 |
| Net total£520 + £390 + £215 + £60 | £1,185.00 |
| VAT at 20%£1,185 × 20% | £237.00 |
| Invoice total£1,185 + £237 | £1,422.00 |
If a merchant only puts one reference on the invoice, check the delivery notes and code the lines yourself, or ask them to raise separate invoices per job. A metal fabrication firm we spoke to, eight staff plus four subbies, had exactly this problem: orders went through Dext into Xero, but splitting them across jobs was manual and fell apart when the office manager left.
How do you catch supplier price rises?
Compare the unit price on each bill with the price in your quote when you code it. A rise that hits once is annoying; a rise you don't notice repeats on every quote you send afterwards.
If each supplier bill is checked against your quoted price as it goes into Xero, you can update your price list the same week the rise lands. See supplier price rises on invoices.
What should you check each week?
A short list, kept up every week, keeps the books right and the job costs true.
Once bills are coded, add labour and the overhead share to see each job's profit: job costing for trades. If the bank and Xero still disagree, see why your Xero doesn't show your real position.
Where Nexley fits
Nexley is the AI back office for UK trade firms: five AI assistants run your tenders, quotes, buying, scheduling and invoicing. It connects to the tools you already work in, you run it all from WhatsApp, and you approve everything. £799 a month.
Nexley picks up merchant invoices from your inbox, reads each line, codes it to the job from the order reference or delivery address, splits mixed bills, and posts draft bills to Xero. It flags price rises against your quotes and asks on WhatsApp when it can't tell which job a line belongs to. You approve before anything is posted.
Common questions
Can I use Xero tracking categories as jobs?
Yes. Create a tracking category called Job with an option per job, tag each bill line and invoice to it, and filter your profit and loss report by it. Ask your accountant how they'd like it named so it fits their year-end work.
Do I need the Ultimate plan for job costing in Xero?
No. Tracking categories work on all plans. Xero lists Projects, which adds time tracking and budgets per job, on the Ultimate plan only as of October 2026.
What about bills that cover more than one job?
Code each line to its own job. If the merchant puts everything on one line, use the delivery notes or ask them to invoice each job separately.
Should van stock go against a job?
Not usually. Treat small consumables bought for the van as an overhead, and cover them in your overhead per man-day rather than chasing pennies per job.
Sources
- Xero: UK pricing plans
- Xero: Track projects
- Xero: Run financial reports and tracking categories
- Xero: Pay bills
- GOV.UK: Keeping VAT records
- GOV.UK: VAT domestic reverse charge for building and construction services
Every rule, rate and date above was checked against these sources on the date shown at the top.
Topic: Getting paid
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