Add a supplier credit note, In the Account field, where the line item is: •
Labour - select CIS Labour Expense. Xero calculates the CIS deduction using the deduction rate selected on the subcontractor's contact record, and displays it separately on the credit note. • Another expense subject to CIS - select CIS Labour Expense. • Materials - select Materials Purchased. • Another expense not subject to CIS - select the appropriate account code. The contact name can't be changed on an approved CIS purchase credit note, as the deduction rate is associated with the contact name. If you need to change the contact, you need to void the credit note and add a new one under the correct contact. You can't edit the account code on a CIS purchase credit note that has been allocated to a bill, partially paid, or refunded. This is to ensure the accuracy of the CIS Monthly Return filed with HMRC.
You will need to clear the ‘total’ field as the credit note total may not match to original bill total.
Add a customer credit note, In the Account field, where the line item is: •
Labour - select CIS Labour Income. Xero calculates the CIS deduction using the Subcontractor Rate you set in your Financial Settings, and displays it separately on the credit note. • Other income not subject to CIS - select the appropriate account code. You can't edit the account code on a CIS sales credit note that has been applied to an invoice, partially paid, or refunded. This is to ensure the accuracy of the CIS Subcontractor (CIS Suffered) Report.
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