Classify new contacts as customers or suppliers

Xero automatically classifies contacts as customers or suppliers once you've entered a sales invoice, bill, or credit note transaction for them. This page explains how the standard contact groups work, and how to create temporary groups if you need to manually classify contacts before you enter their first transaction.

All contacts group

All contacts you've added or imported into Xero display under All.

Image of the Contacts screen, and All Contacts list.

Customers and Suppliers groups

Once you've entered a contact's first sales invoice, bill or credit note, your contact will also display under the Customers or Suppliers group (depending on the type of transaction you entered for them). If you void this first transaction, your contact is removed from the Customers or Suppliers group, and displays only in the All group.

You aren't able to add contacts to the Customers or Suppliers group - Xero does this automatically.

Image of the Contacts screen, and Customers and Suppliers lists.

Create temporary groups to classify contacts as customers or suppliers

If you need to classify contacts you're expecting to become customers or suppliers, create your own contact groups, then add your contacts to these groups temporarily.

Image of the Contacts screen and 2 contact groups added: Customers - expected and Suppliers - expected.