Make sure taxes are correctly accounted for in Xero when creating invoices from Katana sales orders (SOs).
Why tax mapping is needed
When you connect Xero to Katana for the first time, you’ll be asked to map Katana Tax Rates to Xero taxes. This ensures that invoices created in Xero from Katana SOs use the correct tax values.
How to map tax rates
In the tax mapping step of the integration setup (the 3rd step), you’ll see a list of all Katana Tax Rates.
For each Katana tax, select the matching Xero tax rate from the dropdown menu.
The Done button will be enabled once every tax rate has been mapped.
Creating or deleting tax rates
Need a new tax rate in Katana?
You can create new Katana tax rates directly from the mapping screen.Want to delete an existing tax rate in Katana?
Exit the Xero integration setup (click the X in the top right corner).
Go to Settings > Tax rates in Katana.
Delete the tax rates you don’t need.
Restart the Xero connection setup.
Key notes
Mapping all Katana tax rates is mandatory—you cannot proceed until this step is complete.
If your taxes aren’t mapped correctly, invoices created in Xero from Katana may show incorrect tax amounts.
Katana doesn't differentiate between sales taxes and purchase taxes. If you need to apply different tax rates for purchases and sales for the same tax type, create 2 tax rates in Katana (one for purchases and one for sales) and map both to the same tax in Xero.
You can add "No tax" to a sales or purchase order line. During the initial Xero connection, a new tax called "No tax" with 0% rate will be created in Xero, and the Katana "No tax" rate is mapped to this new rate in Xero automatically.
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