How does Xero handle line items added to an invoice from a project?

Xero provides flexibility when it comes to managing line items on invoices that are associated with specific projects. When line items are added to an invoice from a project, they are not automatically assigned to that project. Instead, users need to manually assign these line items to the desired project to ensure accurate tracking and reporting.

This manual assignment process allows users to have greater control over their project accounting, ensuring that costs are allocated correctly and that project profitability can be assessed accurately. By not automatically associating line items, Xero encourages users to explicitly define the relationship between each line item and the projects, thus preventing any potential misallocation.

Having the ability to manually select the project for each line item supports better management of resources, budgeting, and financial insights for various projects within the organization.