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Kaz24
September 1, 2022
Question

QBO Credit Memo for CIS Invoice

  • September 1, 2022
  • 2 replies
  • 0 views

I noticed an error on a CIS Invoice immediately after emailing it. No payment was made and the customer requested a Credit Note and the issue of a new CIS invoice.  I created the credit note but it does not show ‘Less CIS Tax’ in line with the original invoice, so the credit note is more than the original invoice.  How can this difference (CIS tax) be accounted for, I need to send an end of month Statement but that is also obviously showing the difference in figures. I’d have thought the Credit Memo would match the invoice?


Karen

2 replies

JessT
JessT
September 1, 2022

Thank you for posting in the Community today, Karen.

 

I thought of the same thing but cannot confirm it because we're unable to provide advice in this case. Please refer to an accounting professional or a bookkeeper. This way, they can provide the best advice on how to handle your transactions.

 

If you have any other concerns, feel free to go back to this thread.

paul72
paul72
September 3, 2022

Hi @Kaz24 

Truth is that Intuit / QB do not understand CIS.  Certainly not when it comes to credit notes.

By not building in the CIS function into Credit Notes, QBO treats them (for CIS purposes at least) as a part payment rather than a reduction in the value of the work done.  Since CIS is cash-based (the deduction date is the date of payment) QBO is effectively saying that the work was done, the credit note was the payment & the deduction is owed to HMRC.

Ridiculous!

 

It's been raised as an issue on here many times over the last few years (both sales & purchase credits have the same problem).

 

The easiest option is persuade the customer to accept a corrected invoice.  If you noticed it so quickly, they surely won't have logged it onto their system.

Alternatively, void & raise a new 'correct' invoice.

If the customer insists on a credit note, the only workaround I can find is discussed here ... https://quickbooks.intuit.com/learn-support/en-uk/transactions/how-do-i-create-a-cis-credit-note-to-cancel-an-existing-cis/00/263636

 

Hope this helps.

K
Kaz24Author
September 3, 2022

Hi@paul72 

 

Thank you so much for your reply.  The customer was very understanding and accepted a corrected invoice.

 

It is absolutely ridiculous!  QB/Intuit need to get this sorted!  I wasted hours on this, I thought I was doing something wrong.  I used Desktop for 10 years and never had a problem I couldn't solve, way better than Online version.

 

I understand the workaround and will keep it for future use, hopefully I won’t have to use it.  Once again, thank you for explaining it and your assistance.

 

Regards

 

 

 

 

 

 

 

 

 

 

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