Error: Out of Balance Error: An Adjustment / Rounding WISESYNC_ADJUSTMENT of 255.00 is greater than the set limit of +/- 10.00 and cannot be applied to this invoice.
A transaction has been created in Xer and cannot be removed: INV-1234


This error specifically relates to the creation of a record in your accounting package that has failed validation. As Wise-Sync validates each line of the invoice and invoice in total (to match against ConnectWise) a record which is required to be adjusted by more than 10.00 is considered to be too material to allow to post with an adjustment.

ConnectWise has a vast array of complex structures to support many tax regions. One of which being the US which has the most complex tax system on the planet. When there is an issue relating to the calculation of the sales tax, the ConnectWise invoice will always prevail (as the source of truth). In the case where ConnectWise has mis-calculated the tax rate, a validation error will be generated where the adjustment transaction is greater than the limit set in your account (Default: +/- 10.00)

Tax is the most common related reason for an "Out of Balance Error:" and  is normally a result of and issue relating to the following key areas.


IssueError Resulting
Tax Code MappingThe most common issue resulting from a large adjustment is where a Tax Code has different calculation methods or taxed elements (Service, Products, Expenses).

In order for an invoice to correctly calculate between the systems, the tax codes must use the same calculation methods to achieve the same taxable amount.

Xero: 

Refer to: Setup Tax Codes

QuickBooks Online:

Refer to: Setup Tax Codes

Tax can be calculated at three levels within Xero. These are Static Mapping, Group Mapping, Level Mapping

Static Mapping: 
Where static mapping is selected (all items are taxed using the same tax rate). The taxable state of a product is determined by the "Tax Flag" of the products sold. If an item has "Tax  = Y" then tax will be calculated on that line, for the rate defined in the static mapping in Wise-Sync

Group Mapping: Group Mapping will take the "Invoice Tax" code, and apply this tax code to all items, where the taxable flag is Tax = "Y".  When tax is applicable, tax will be applied based on the tax specificed at the invoice level. This method is commonly used when the tax rate is the same for all types and sales, however there may be different agencies that the tax is to be reported to (Eg. US: Federal, State, County, City). For tax Group Mapping to function correctly between applications, the group must be setup to calculate the same combined tax rate between ConnectWise and your Accounting Package. 

Line Level Mapping: Line level mapping will apply tax at the line level, to ensure that taxes are calculated using the same rates and methods. To function correctly, all of the component tax codes are required to ensure that the tax applied is applicable to the levels defined..
Tax Not Applied Correctly to an InvoiceIn some instances, the tax calculated on the invoice in ConnectWise may not correctly calculate the Tax. In this case the tax has been incorrectly calculated and may require that an invoice is reissued to the client (to correct the previous inconsistency.

To resolve this issue, set the Invoice to GL Reload, and then re-select the Tax Code, by clicking on the Tax Code selection tool while the invoice is in the GL Reload Status. Once the tax has been re-applied, the correct tax will be calculated for the invoice.

If the tax continues to be calculated at the wrong rate, ensure that the following applies:
  • That the Tax Code has the correct application of tax to "Products, Services and Expenses" to match the expected taxable supply.
  • That the start date (or end date) of the tax has not been set to a period that is outside of the range of the invoice in question.
  • That there are no exclusions for the tax code which would result in the tax not being applied due to the exclusion.
Generally when tax is not applied correctly it is a result of one of the above statements.
Products marked as Taxable, where tax is set to a a Non-Taxable code (or is blank)When a product is marked as taxable, and the tax is set to blank, and error will normally result as there is a conflict between the tax on the product lines and the way that the ConnectWise invoice will have calculated tax.

You can consider: 
  • Checking the Tax Code parameters in ConnectWise
  • Checking the Tax Rates / Codes setup in your accounting package to ensure that they have the same tax calculation methods (amounts / percentages).
  • That ConnectWise has calculated the tax based on the methods defined in the tax setup.
  • Where an Agreement is not taxable, and the items (additions) are taxable, tax will not be correctly calculated even when the correct tax code is selected on the agreement invoice.

Known Issue: 
Products incorrectly marked as "Non-Taxable" when "Down Payments Previously Taxed" is selected.

Requires Manual Work-Around.
This issue results to when a Down Payment is applied to a subsequent invoice, ConnectWise is incorrectly marking the items as "Non-Taxable" even where the items are set to Taxable in ConnectWise.

Updated: 06/03/2014 - ConnectWise have confirmed that this issue has been corrected in v2015.3, which is due for release in the coming days / weeks.

Updated: 23/02/2014
- Issue has been logged with the ConnectWise API team, updates will be posted as more information becomes available in response to the findings of this issue.

Refer: Tax Validation error when Down Payment applied to invoice, and was previously taxed:

Summary for the work-around is as follows:

a) Set the invoice to "Down Payment was previously taxed" and send to the client.
b) Set the invoice back to "GL Reload" and deselect the "Down Payment was previously taxed", re-close it and sync through Wise-Sync. A record will be created in Xero with the DownPayment invoice set to your Tax Exempt code as defined in Wise-Sync.
c) Update the invoice in Xero, so that the Down Payment Tax is correctly applied to the invoice line for the downpayment.
d) Delete the Batch for the invoice in ConnectWise
e) Set the Status to "GL Reload".
f) Re-set the "Down Payment was previously taxed" checkbox, and save the invoice as your "Closed - Emailed" status.
g) Create a Manual batch for the invoice which has been posted.