I just can't get CIS to work

I’ve looked at all the info regarding entering CIS but it just doesn’t work.
I’m a subcontractor who has been paid and need to enter it correctly. Have set up separate cis bank and put payments in there but how do I split it up for the cis and move to main bank.

Hi @Kevin_Gravill

As an example, let’s say you’ve invoiced for £500 and received £400 because of the CIS.

You would mark the invoice as paid in full from the CIS bank account you’ve created. In the bank account, you would have a transaction of £500 tagged to the invoice.

In your current account you would have the £400 that was actually paid to you. Just tag this as a “transfer between accounts”, and select the CIS bank account, so your CIS account ends up looking similar to this:

This makes your current account correct (inline with your bank statement) and your CIS bank account with a balance of £100.

I hope that helps!

Hi, not really lol.
When placing a payment of the £500 I put in the CIS account. It shows green as money in and has a green tagged next to it.

How does this find its way into current account ? to be logged as £400.

I have no idea, if I de-tag this tagged payment in CIS it then gives me 5 options as to what to do, one is to tag as payment from customer as which I had done, another is to transfer between accounts, but that option only allows an incoming transfer from current account. It just doesn’t seem to work

Has the client paid the £400 into your bank account?

Hi, yes.
I do manual input from the bank rather than auto, but yes client paid £400 into my account

When you enter the £400 payment into your account, tag it as a “transfer between accounts” and select the CIS bank account. This will automatically create the balancing entry for you too.

Enter into which account first ? Don’t tag it as a payment from a customer ?

Sorry - enter the £400 into your current account (where you’ve actually received the funds). No need to tag it as a payment from a customer - the £500 entry took care of that.

Essentially the CIS account is acting as an intermediary, in a similar way as a merchant account (like PayPal or Stripe) would be. The invoice is “paid in full” but you don’t receive the full balance.

This gives you two entries on the CIS account - £500 in, £400 out (to your current account), leaving the 20% (£100) there.

Right, it seems a awfully strange concept. Here’s what I have ended up doing and it seems to do what I need. Have an invoice for £500. Once customer has paid, log a payment. I open that screen up and log £400 dont tick paid in full, enter date and enter it into CURRENT ACCOUNT. press save. This leaves the invoice as part paid, so then log another payment in the same manner but log £100 dont tick paid in full, enter date and enter into CIS account. This now shows up in both accounts and invoice fully paid. In the CIS account is basically the money that the contractor has paid for you and can be added manually to any end figures if necessary. This seems really simple as it also seems people have problems with this work around.

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