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Resolving a "Transaction Limit" Error in Xero

Why you might be unable to send settlements to Xero and how to resolve it.

Written by Rachel Jones
Updated today

If you encounter an error when attempting to send settlements to Xero, it may be due to a subscription-based limit within your Xero account, or it could be caused by payment issues such as failed transactions or unpaid invoices.

Common Errors When Posting to Xero
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While Link My Books allows you to send an unlimited number of settlements across all of our plans, some Xero subscription tiers have strict monthly transaction limits.

Specifically, the Xero Ignite (UK) and Xero Early (US) plans have a monthly limit of: Additionally, the Xero Starter Plan also has strict monthly limits on the number of invoices and bills you can post.

  • 20 invoices

  • 10 bills UK / 5 bills US

Sole Traders in the UK may be on the Xero Simple plan which has a monthly plan limit of 10 invoices

If your business has exceeded these limits for the current month, Xero's system will prevent any additional invoices or bills from being created.

Important: Xero counts all invoices and bills created across all connected apps β€” not just ones you create manually. Each settlement that Link My Books sends to Xero uses one invoice (or bill) slot. So even if you have never manually created an invoice in Xero, you may still hit the limit if Link My Books or another connected app has been creating transactions on your behalf.

For example, if your Amazon account receives 5 settlements in a month and you have the Xero Simple plan (10-invoice limit), those 5 settlements already use half your monthly allowance β€” before you create a single invoice yourself.

The Solution

If you are on a Xero Ignite or Early plan and have exceeded your monthly limit, you will need to upgrade your Xero subscription to a higher-tier plan. Once upgraded, you will be able to send the remaining settlements for the month without encountering this error. If the error stems from an unpaid invoice, check your payment history and ensure your payment method in Link My Books is up-to-date before retrying.


How to Check Your Xero Usage

To see how many invoices and bills you have used this month:

  1. Log in to Xero

  2. Go to Settings > Subscription

  3. Look for the usage summary which shows how many invoices and bills have been created in the current billing period

This will help you confirm whether the limit has been reached and whether an upgrade is necessary.

Troubleshooting Tips for Xero Invoice and Bill Posting

  • Always ensure your payment information is valid and up-to-date.

  • Monitor your Xero plan to check for any limitations that could cause disruptions.

  • If issues persist after following the resolutions above, consider contacting Link My Books support for further assistance.

For more information on Xero's pricing and plan tiers, please visit their official website.

If you have any questions about this article or feedback on how we could make it better please reach out to the support team via the blue chat icon on the bottom right of the page or via email to [email protected].

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