Hope you can help,
A customer has paid an amount into my account so that I can go and buy materials for them to be installed, not a payment for labour/payment from customer !!, how would this be annotated in QF in “Banking” tagging the payment as I don’t want to be charged tax on this as it’s not a payment for work done.
Many thanks
Andy
Hi @andyburns
If you’ve received a ‘pre-payment’, it can be logged in a few ways to reflect on their account. As you’ve mentioned tagging, the way you would do this is as follows:
- Click ‘Tag Me!’ and select 'Payment from a customer’s
- Select ‘Pay down multiple invoices’ and enter the clients name
- Enter the clients name
- Tick ‘Assign to account’ and complete the process.
This will then show up as a pre-payment against this client. When it comes to tax, this isn’t included in your Profit & Loss report (and therefore your earnings). If you’re VAT registered and using the cash accounting scheme, it will show up there as this is a requirement for the scheme itself.
I hope that makes sense?