I’m new to QuickFile, but I have a question which may not be directly QF related!
I have just started sharing an office with a friend, which we split on a 1/3rd 2/3rd basis. In my previous accountancy software, I paid the full amount of rent to our landlord last month, and then created an expense (which in turn created an invoice) for my friend’s share, which he paid to me.
My problem is that the invoice that was created for his share showed up in my general ‘income’ list of invoices, and then when I did my end of year accounts I had to remember to ‘deduct’ this invoice amount from my income.
So my question: Does QuickFile have a way of creating ‘invoices’ (in this case, my friend’s rent share) that won’t appear in my ‘Sales’ invoices?
You could tag it as “something else not on the list”, which tags it directly to a nominal code, but I suspect this would still show up on your reports.
What I’m thinking (although, I’m not an accountant so please feel free to double check), is because your friend is paying a share of the rent, and therefore what you’re paying out for it isn’t actually your expense, maybe you could raise a credit note against it (and tag his money in as the refund), therefore not counting it as income and removing his share of the rent from your expenses.
Hope that makes sense. However, as I said, I’m not an accountant so i would either check with your own or wait for someone with a bit more knowledge than me to reply!
As @Parker1090 mentions, tagging directly to a nominal code would bypass the need to create an invoice. Technically it’s still classed as income though and will appear on your profit and loss report.
Thanks for the answers, one thing I forgot to mention is that he actually needs an ‘invoice’ or some sort of ‘purchase order’ so that he has a record of it for his accountant. Is there a ‘non-invoice invoice’ function in QuickFile, like an ‘expense payment request’.
Parker, what you’re saying does seem to make sense, QF has credit notes then?
Hm. But then I would have to either a) pay tax on this as ‘earnings’ or b) remember to ‘deduct’ all 12 ‘rent’ invoices when I’m doing my SA return. I thought there might be another way
I don’t understand the problem here, if you’re effectively renting an office from a landlord and then “sub-letting” one third of it to your friend then you’d have your friend’s share booked as income and the full rent booked as an expense, so your overall net profit is correct (as if you’d paid two thirds of the rent) as one offsets against the other.
I must admit I’m a bit lost on this one. If you pay the full rent and then invoice 1/3 to someone else the income is effectively removing 1/3 of the expenditure of the rent you pay.
If you simply pay 2/3 of the rent and then let the landlord collect the other 1/3 from your friend aren’t you in the same financial position in both scenarios?
I’ve been a bit of a moron here. Ignore my last reply, and the part about ‘deducting’. I’m feeling a little silly here. My only real request seems to be about the rent ‘invoices’ not showing up in my normal income list so that I know how much I’ve actually made. As for the deduction madness, pretend I never mentioned it
