I need to create a Recipient Created Tax Invoice (RCTI) form template. In custom forms I do not get this option. How do I do this?

[IntuitChristine · Accepted solution]

Hi bookkeeper

Recipient created invoicing is currently unavailable in QBO. As of now, you'll have to create a separate invoice showing the original cost. 

Then, create a bill for the expenses deducted and to be able to send a remittance advice.

The total paid showing on the remittance advice includes details of the bill being paid but does not include the credits in detail or take them into account in the total. 

To create an invoice:

1. Click on the Plus icon (+).
2. Click on Invoice.
3. Select the customer name, terms, date to be assigned on the invoice.
4. Select the item/service, enter the amount and tax if any.
5. Click on Save or Save and send.
   

To create a remittance advice:

1. Click on the Plus icon (+).
2. Click on Pay Bills.
3. Select the bill to pay by putting a check mark beside the bill.
4. Click on Print or Save and send.

Hope this helps.

[bookkeeper15]

RCTI's are not unusual - why is this not available?  Will it be available in the near future?

[ChrisD55]

How are you meant to reconcile this invoice that has been sent if the amount will never be received?  

[GlinetteC]

Hello there,  ChrisD55.

You can create an Expense account named Bad Debts. Create a service item called bad debt and link it to the Bad Debts Expense account.

Create a credit memo for the customer and use the bad debt item. Then apply the Credit Memo to the outstanding invoice.

To create an Expense account named Bad Debt:

1. Click the Gear icon, and choose Chart of Accounts.
2. Click New.
3. From the Account type drop-down list, select Expenses.
4. From the Detail Type drop-down, choose Bad Debts.
5. In the Name field, enter Bad Debts.

You can check this article for the detailed steps and guide on how to write off bad debts. 

Don't hesitate to reach out to me if you need more help.

[astein65]

Almost 3 years since you wrote this reply and Quickbooks still have ne better option than creating a bad debt expense for a legitimate and common business tranasction

[KlentB]

I hear your sentiments, astein65.

The process of writing off uncollectible receivables in QuickBooks Online involves creating a bad debts expense account and bad debts item. Additionally, there are different methods of recording the transaction depending on your accounting method (accrual or cash). To learn more about this topic, just choose the appropriate scenario and follow the recommended steps in this article: Write off bad debt in QuickBooks Online. 

I understand that you want an alternative or more convenient way of entering this type of entry. Please know that we roll out product enhancements based on the ideas and suggestions that we received from our customers. To help improve your experience in QBO, I encourage sending feedback directly to our Product Development Team by following the steps below:

1. Sign in to your QBO company.
2. Click the Gear icon at the top, then choose Feedback.
3. Enter product suggestions.
4. Select Next to submit your comments.

I also recommend talking to your accountant to know what's the best practice for your company. If you need resources and tips while dealing with your other business transactions, feel free to browse a topic from this page: Manage company's income and customers.

Feel free to reach out to me anytime whenever you need have product questions. I've got you covered. Take care!