Recharging a project in Quickfile

Accounting
1

I have set up a project in QF and recharge my services to the project. I create invoices and create a payment in the bank account but it doesn’t pick up the invoice I have created to the project. So in the report it doesn’t show up as a payment/purchase.

What am I doing wrong? How should I account for the recharge to the project so that it shows as a purchase in the project. I

2

Hi @termeek

Can I just check that:

  • The tag name appears in the top right corner of the invoice if you view it?
  • If you view the items in the project tag (by going to project reports and selecting the project), do the invoices you’re querying appear?

If you do have a yellow tag but it doesn’t show in the list, can you provide me with the invoice number please and I’ll take a quick look?

3

Hi
I noticed I had not tagged all the invoices sales/purchases that I have either paid out or transferred through recharge but the totals in the project report has not altered even though I have now I believe tagged all with the project name.
I will look up and send you the invoice for both purchase and internal sales later on as I now need to go to work. Thanks for your help so far.
Best wishes
Teresa

4

Hi I have just checked the numbers and think I have partially worked out what might be going wrong. But not sure if there is an easy way of solving other than re doing all the recharge invoices as I had. Entered them as sales and tagged as Community massage London. Looking at the reports they come up ascml sales(income) rather than expenditure.
Presumably I should have entered them as purchases and tagged as CML is this correct? Or how should I enter the recharge. - the problem I thought was that if I enter the recharge to CML as purchase I would need a supporting invoice .

I am now getting thoroughly muddled.

Purchase invoice numbers paid out to others are 038, 039, 043, 091, 087, 096, 097, 110, 137, 138, 139, 140

Sales numbers for recharging life in balance services to CML entered as sales invoices
237, 236, 242, 279, 280, 285

Do I need to de-tag, and delete all sales invoices above and re enter them as purchases? If so what do I do about supporting invoices? Thanks for your help. Teresa

5

To recharge a cost, there should be 2 elements:

  • The purchase invoice (for what you’ve paid out)
  • The sales invoice (for what you’re recharging)

In effect, the overall balance should be at least £0.00 or higher (depends if you add a markup of not).

So if you have recharged this to a client (where they pay you back), then a sales invoice would be correct. In fact, we can even help here with our re-billing tool which links back to the original purchases and attach any receipts (if you wish).

I hope that helps?

6

Hi Mathew
Ref the purchase - I provide the service for CML but do not currently draw the money from Llife in Balance per season provided, I currently just take a dividend at the end of the year as I am still building up the business, so the money would remain in LIB account/bank so how do I record the purchase
Thanks

7

How is the actual purchase paid? It should be tagged as it’s paid, so if it’s paid from the current account (either before or after the client reimburses you), you would tag it as normal there.

8

I tag the recharge as transfer between accounts. I.e CML to life in balance banks in QF… As it doesn’t actually leave the real bank account but it is money effectively restricted for CML but services are provided by LiB.however tagging as transfer between banks doesn’t pick up the sales invoice . And the sales invoice is making the report look as if I am getting more income in the project than I actually am! How do I get it to show the internal recharge as coming out of the project account rather than in to it?
I’m also worried that if it shows as income in the project the profit is way skewed as the expenses are fewer than actual as the money which should be in LIBis showing as income to CML project - I’m not sure what it will be doing on the LiB side either will it show as income there too? If so it will impact on the tax payable,

I hope this makes some kind of sense

9

Apologies if I’m not following here - but I’ll certainly try my best.

When you mention internal recharge, do you mean this is recharged to a project/different department rather than a client?

Any sales invoices raised that are not in draft will affect your profit and loss, and the same with purchase invoices. Within QuickFile there isn’t a specific way to deal with departmental costings, although project tags could certainly be used for this and use the ‘adjustments’ option rather than an invoice.