How can you categorize a contact as a customer or supplier in Xero?

The categorization of a contact as a customer or supplier in Xero is often automatically determined during the transaction process, specifically when a transaction like an invoice, bill, or credit note is approved. This happens because Xero identifies the role of the contact based on the context of the transaction.

For instance, if you approve an invoice that is linked to a particular contact, Xero will recognize that this contact is being treated as a customer for that transaction. Conversely, if a bill is approved for a contact, Xero will categorize that contact as a supplier. This automatic categorization streamlines the workflow and ensures that contacts are appropriately tagged based on their interaction with the organization, minimizing the need for manual data entry errors or oversight.

Additionally, while manual assignment of contacts does allow for customization when creating a contact, and importing from a CSV file facilitates the onboarding of multiple contacts at once, this process doesn't inherently classify contacts based on transactions. Requesting support assistance from Xero is generally unnecessary for basic categorization tasks, as the platform is designed to handle this efficiently through its transaction processes.