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DanielReid
February 28, 2020
Question

RCTI solution?

  • February 28, 2020
  • 2 replies
  • 0 views

I understand that Quickbooks doesn't support issuing RCTI's (receipt created tax invoice), and have been doing them manually outside of QuickBooks for some time with a word doc RCTI template I have.

 

Instead of issuing an RCTI,  would I be breaking any rules by issuing an invoice that has a negative dollar amount?

 

So for example instead of issuing an RCTI from the client to our business for $500 inc gst - could I just send an invoice to the client from our business to them for '-$500' or a credit/credit note of $500?

 

I'm sure its been asked before but couldn't find anything on this topic.

 

thanks

 

2 replies

Bonny_
Bonny_
February 28, 2020

Hi DanielReid,

 

From ATO guidelines, the requirements to issue an RCTI include:

  1. the buyer must be approved by ATO to issue RCTIs
  2. the RCTI should be issued within 28 days of making or determining the value of the purchase
  3. both the buyer and seller must have a valid ABN.

Also, looking at a sample template provided by the ATO here, there is a requirement of having details of both recipient/supplier and value of taxable supplies. The solution you suggested would not have all the requirements listed there.

 

Since we don't offer an RCTI solution, the best practice to record this in QuickBooks Online would be to record a separate invoice for the income and expense items. 

 

Bonny

D
DanielReidAuthor
February 28, 2020

Thanks for your reply, an invoice with a negative amount would still have the exact same info as an RCTI, it would contain both parties, plus the value of taxable supplies would all be included in the document. So as long as all the info is in there, is there any reason we couldn't do this?

 

thanks

AlcaeusF
AlcaeusF
February 28, 2020

Thanks for getting back to us, @DanielReid.

 

Since QuickBooks Online (QBO) currently doesn't offer Recipient-created tax invoices (RCTI) solution as mentioned by my colleague above, I highly suggest contacting the Australian Taxation Office (ATO). One of their representatives can provide more information and further discuss this matter.

 

To reach them, consider checking out this link: https://www.ato.gov.au/About-ATO/Contact-us/.

 

I'll pass along this suggestion to our Product Developers. They're always looking for ideas to consider on how to improve QBO. In the meantime, I recommend visiting our Blog site. This is where we share recent happenings and future developments, such as updates to newly added features.

 

Please let me know if you have any other concerns in the comment section below. I want to make sure everything is taken care of for you. I'm always here to help. Have a good one!

    I
    IntuitSheila
    April 3, 2023

    Hi ICEGM,

     

    I can see how helpful it is to be able to create an RCTI (receipt created tax invoice) in QuickBooks Online version, the direct way for the recording of this is not yet available. I have already submitted the product enhancement request to our Product Development Team so we can look into this further. We cannot provide any turnaround time as to when this will be available but what we do here is that, we have a product/feature release at a specific time - every month and hopefully we could include this feature soon.

     

    You may also check our feature enhancement implemented for the past periods through the link https://quickbooks.intuit.com/au/product-updates/

     

    For the mean time, you may follow the RCTI invoice format from ATO and record the full amount of sales as invoice in QuickBooks Online then taxes paid as expense.

     

    Post again in the Community if you have more questions, I'll be here to help you.

     

    I
    ICEGM
    April 3, 2023

    It is very annoying how these threads do not even understand what us as customers are asking for. I don't need a special way of recording RCTI's these are just recorded as a normal Supplier Bill. The problem comes about in the way we need to issue the Bill to the Contractor as an RCTI. Easy enough to achieve if I can print or email the Supplier Bill on an altered Supplier Bill Template that has all the requirements of the Australian Taxation Law. Its such an easy solution, it would seriously take someone 30 minutes to cut and past the code from the invoice print sequence and alter it to reflect a Supplier Bill. Problem solved. But NO, its all too hard... we want to make a mountain out of a mole hill and make a big deal about why we cant comply with Australian Law year after year. You people are a disgrace.

    I
    IntuitSheila
    April 3, 2023

    Hi ICEGM,

     

    Bill in QuickBooks is for recording purposes on what was actually done outside. The system uses check as the default transaction mode of payment which's why it shows as Bill Payment (Check). If you want to send proof of your expense, you can manually view and print the bill payment by looking for the transactions in your suppliers. 

     

    Or another option I can think of is to use the print menu directly from your browser. But it's not the same as part of the QuickBooks Online print feature.

     

    Also, you'll want to run and customize the Transactions List by Vendor report to access the bills of your vendors.

     

    Check this link to learn more about Enter bills and record bill payments in QuickBooks Online.

     

    Furthermore, if you still need help with your account, I recommend contacting our Customer Care Team. That way, one of your care agents can further check your account in  secure form.

     

    Drop a comment below if you have additional questions. I'm around to help you!

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