Multi-Bill PO Support in Xero

Overview

This guide outlines the implementation and operational workflow of a newly introduced AI task in EzzyBills, designed to handle multiple bills per Purchase Order (PO) in Xero. The aim is to enable accurate PO reconciliation by ensuring POs are marked as Billed only when all items have been fully receipted, even across multiple supplier invoices.

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Objectives

• Enhance PO lifecycle management in Xero for scenarios with partial or staggered billing.
• Enable automated reconciliation of PO item quantities across multiple bills.
• Provide accurate visibility into the status of partially or fully fulfilled POs.

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Default Xero Behavior vs. New AI Task

Feature	Default Xero PO Handling	New EzzyBills AI Task
Bill-to-PO matching	One bill per PO	Multiple bills per PO
Mark PO as Billed	Based on total amount tolerance	Based on full item quantity receipt
Item-level matching	Not required	Required (via item codes)
Lookback period	N/A	3 months of historical bills
Flexibility	Rigid, one-time	Dynamic, continuous tracking

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When to Use This Task

Use this AI task whenever a PO may receive more than one bill, such as in the following cases:

• Partial deliveries with partial billing.
• Recurring supplier charges linked to a single PO.
• Complex purchase agreements with staggered fulfilment.

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Implementation Steps

Step 1: Disable Xero’s Default PO Matching

In Xero export [146] workflow task setting, disable the automatic PO-to-Bill conversion logic to avoid premature closure of POs:

{
  "state": 146,
  "keywords": [
  {
      "name": "ConvertPOToBilled",
      "value": "false"
    }
  ]
}

This is crucial to allow the AI task to take over responsibility for marking the PO as Billed.

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Step 2: Ensure Item Code Presence

To enable reliable item-level matching:

• Item codes must be present on both:
  • The Xero Purchase Order
  • The Bills being exported from EzzyBills
• These item codes are used to:
  • Match line items from Bills to the corresponding PO items
  • Aggregate quantities received over time

❗ Missing or mismatched item codes will result in incomplete reconciliation and prevent the PO from being closed.

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Step 3: Add AI Task After Export to Xero

The workflow will be like this (Add AI task after Xero export)
AI Task Name: Mark Xero PO as BILLED if Fully Receipted

Once a bill is successfully exported to Xero. This task performs the following:

1. Find all bills linked to the same PO within the last 3 months.
2. Sum the received quantities for each item code across those bills.
3. Compare total quantities against the PO quantities.
4. Mark PO as Billed in Xero only if all items are fully receipted.

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Summary

The new EzzyBills AI task enhances Xero integration by:

• Supporting real-world billing patterns with multiple invoices per PO
• Improving accuracy through item-level reconciliation
• Giving finance teams better control over PO fulfillment and closure