I am working on a project as a project manager for another company. During this project there has been several trips to a location, where I pay for the trip ie Travel, subsistence, materials ect, out of my own account. I then send an expenses invoice to the client to get reimbursed for the expenses for the trip. On the Quickfile software, my assistant has made errors, where she has been tagging these expenses invoices as generic income, and has not been rebilling, and the expenses as generic outgoings, also not rebilling. Whilst she has been tagging the project number, there is now three invoices that have been submitted in VAT tax returns, that show the reimbursement of expenses payments as fee income, and not reimbursement.
Is there anyway we can correct this?
Going forward, there’s been more trips since this issue that need to be “tagged”. I understand there is a rebilling option, so we will do this and it creates a new invoice to the client. but the client has already paid the expenses back, So how do I match the payment from the client with the new rebilled expenses invoice?
Hello @TheresaMooch
Once included in a vat return you can not amend the invoices, you can credit the invoices and re process them.
The next vat return would then pick up the reversal and new invoices to keep the figures that HMRC has accurate.
Going forward, there’s been more trips since this issue that need to be “tagged”. I understand there is a rebilling option, so we will do this and it creates a new invoice to the client. but the client has already paid the expenses back, So how do I match the payment from the client with the new rebilled expenses invoice?
- Tag the payment as a payment on account to the client (this will record a prepayment on the clients account)
- Open the invoice and click Log Payment
- You can then use prepayment balance to pay the invoice
Hi Steve
Thanks so much for getting back to me this quickly. So as I understand it, I need to first tag and rebill the item expenses first to create a new invoice to the client, then find the line where the payment client has already made, and tag it to their account. Once that’s done, open that payment invoice from the client, click log payment, and then find where it says prepayment, and it should find the expenses invoice… is that right?
Hello @TheresaMooch
If you have used the Rebilling Expenses and the client has pay you, I would assume you have the below
An outstanding invoice
An untagged payment in the bank
You should just be able to tag the payment to the invoice