I’ve added a Cis payment as per instruction in Knowledge base article, however once I get to the bit where it says this…
" On your main business account you will eventually see the NET payment received from your client, in this case that would be £400. Simply tag this payment as a “ Bank Transfer ” to the “ CIS Deductions ” account. "
What is the “Main business account” ? Is this the current account ? I’ve looked and the transaction doesn’t appear here, or is it the Cis deductions account I have just created as per the knowledge base article instructions ?
The transaction for the net payment (the invoice minus CIS deductions) would be when the client pays. So in the example, the invoice is £500, but the client only pays £400 because of the CIS deductions.
The invoice would be marked as paid in full (£500) to the newly created CIS Deductions bank account. When your client pays the £400, you would create the bank transaction as normal in the current account (or whatever bank account the client paid to), and tag it as a transfer to the CIS Deductions bank account.
Please accept my apologies - I got it the wrong way around above.
When the client pays, you would mark the invoice as paid in full from the CIS Deductions account (so the full £500 in the example). and then transfer what they actually paid from the CIS Deductions account to your actual bank account (£400 from the example), leaving you with £100 in the CIS account.
So in your example you have 2 “money in” transactions, whereas you should have 1 money in and 1 money out:
£500 money in (full payment against the invoice), tagged to invoice
£400 money out (actual funds received from client), tagged as a transfer to your bank account
