I understand that Quickbooks doesn't support issuing RCTI's (receipt created tax invoice), and have been doing them manually outside of QuickBooks for some time with a word doc RCTI template I have.
Instead of issuing an RCTI, would I be breaking any rules by issuing an invoice that has a negative dollar amount?
So for example instead of issuing an RCTI from the client to our business for $500 inc gst - could I just send an invoice to the client from our business to them for '-$500' or a credit/credit note of $500?
I'm sure its been asked before but couldn't find anything on this topic.
From ATO guidelines, the requirements to issue an RCTI include:
Also, looking at a sample template provided by the ATO here, there is a requirement of having details of both recipient/supplier and value of taxable supplies. The solution you suggested would not have all the requirements listed there.
Since we don't offer an RCTI solution, the best practice to record this in QuickBooks Online would be to record a separate invoice for the income and expense items.
Thanks for your reply, an invoice with a negative amount would still have the exact same info as an RCTI, it would contain both parties, plus the value of taxable supplies would all be included in the document. So as long as all the info is in there, is there any reason we couldn't do this?
Thanks for getting back to us, @DanielReid.
Since QuickBooks Online (QBO) currently doesn't offer Recipient-created tax invoices (RCTI) solution as mentioned by my colleague above, I highly suggest contacting the Australian Taxation Office (ATO). One of their representatives can provide more information and further discuss this matter.
To reach them, consider checking out this link: https://www.ato.gov.au/About-ATO/Contact-us/.
I'll pass along this suggestion to our Product Developers. They're always looking for ideas to consider on how to improve QBO. In the meantime, I recommend visiting our Blog site. This is where we share recent happenings and future developments, such as updates to newly added features.
Please let me know if you have any other concerns in the comment section below. I want to make sure everything is taken care of for you. I'm always here to help. Have a good one!
This feature is not currently available, however it has been a highly requested feature and we may add it in a future update. At the moment, the process remains to create an Invoice and then a separate remittance advice for the payment and sale sections of the transaction. Below I've included a step by step process to record this in QuickBooks.
The first step would be to create an invoice for the customer when the sale is first recorded. You can do this by following these steps:
In addition to the invoice, you need to create a Bill to record the amount that would be remitted to the recipient. You would then pay that bill using the following steps:
This will send a remittance advice to the recipient advising them of the payment.
If you still have any questions regarding this process, feel free to reach out to our support at 1800 046 038 or reply in this thread and we'll be happy to help as best we can.
This solution seems odd.
1. It means that clients that you have to provide an RCTI to need to be set up as a customer as well as a vendor.
2. Once you create an invoice for them how do allocate a payment to that invoice when it is you paying them?
I can see how helpful to be able to create a RCTI invoice for your business. Currently QuickBooks Online does not offer the RCTI feature. The suggestion provided by my colleague from the thread above is the work around on how you can record the transaction manually in QuickBooks.
You'll need to create an invoice for the customer side and an expense for the supplier/vendor. And then, once you're ready to pay you can create a journal entry to Accounts Receivable and Accounts payable. I'd recommend reaching out to your accountant to get more information on how you can journal the accounts to not mess up your books.
And I recommend checking in with the ATO to get more information about recording RCTI manually: https://www.ato.gov.au/About-ATO/Contact-us/.
Post again in the Community if you need more help with QuickBooks Online. I'll be around to help you!
As an operator of a transport business, we have needed to provide RCTI's to our contract drivers for the past 25 years. Reckon has NEVER been interested in understanding that this is a requirement by Australian Taxation Law. They always refer to their workaround notes which is totally not relevant to my industry or application. Being able to simply print a Supplier Bill then print it on a configured RCTI Template that we could make ourselves would be a simple solution. Instead Reckon are happy to charge you $1000 a year for software that I have already originally purchased outright, only to buy myself and many others it would seem a whole world of pain by having to type out RCTI for each contractor each week. So totally unacceptable.
ICE Couriers NSW
This solution does not meet many if any of the ATO requirements for an RCTI. It is missing all the detail required, not to mention our obligations to provide reconciled accurate information to our contractors given we are the ones calculating their invoices for them. Just a totally lack of understanding what RCTI means in its varying contexts.
I can understand how helpful to you and your business to be able to create RCTI invoice in QuickBooks Online. 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.
Furthermore, please be advised that you've reached the support desk of QuickBooks Online version. If you're using Reckon account, in Australia the QuickBooks desktop version is called Reckon Account. If you're looking for Desktop Support I highly suggest contacting the Reckon Department. For assistance, please contact Reckon at https://www.reckon.com/au/contact-us/. The best department to reach out is the Reckon department.
If you're using the QuickBooks Online version, to help improve your experience in QBO, I encourage sending feedback directly to our Product Development Team by following the steps below:
Don't hesitate to reach out to me if you need more help.
Its only the most commonly requested feature via the avenue you have posted. Your own team acknowledges this yet nothing is ever done about it year after year, while all other platforms simply comply with Australian Taxation Law such as MYOB, Xero etc. Clearly your refusal to provide software that allows us to comply with Australian Law is low on your priority list. the ATO have told me on numerous occasions to just find another software provider, easier said than done given the years worth of non compliance I need to remedy and report to the ATO before I can migrate my data. Last quote I got was for about $580 for each year I need to migrate. All because you wont allow a Supplier Bill to be printed????
I can see how helpful it is to be able to create an RCTI (receipt created tax invoice) in QuickBooks Online version, the direct way for the recording of this is not yet available. I have already submitted the product enhancement request to our Product Development Team so we can look into this further. We cannot provide any turnaround time as to when this will be available but what we do here is that, we have a product/feature release at a specific time - every month and hopefully we could include this feature soon.
You may also check our feature enhancement implemented for the past periods through the link https://quickbooks.intuit.com/au/product-updates/
For the mean time, you may follow the RCTI invoice format from ATO and record the full amount of sales as invoice in QuickBooks Online then taxes paid as expense.
Post again in the Community if you have more questions, I'll be here to help you.
It is very annoying how these threads do not even understand what us as customers are asking for. I don't need a special way of recording RCTI's these are just recorded as a normal Supplier Bill. The problem comes about in the way we need to issue the Bill to the Contractor as an RCTI. Easy enough to achieve if I can print or email the Supplier Bill on an altered Supplier Bill Template that has all the requirements of the Australian Taxation Law. Its such an easy solution, it would seriously take someone 30 minutes to cut and past the code from the invoice print sequence and alter it to reflect a Supplier Bill. Problem solved. But NO, its all too hard... we want to make a mountain out of a mole hill and make a big deal about why we cant comply with Australian Law year after year. You people are a disgrace.
Bill in QuickBooks is for recording purposes on what was actually done outside. The system uses check as the default transaction mode of payment which's why it shows as Bill Payment (Check). If you want to send proof of your expense, you can manually view and print the bill payment by looking for the transactions in your suppliers.
Or another option I can think of is to use the print menu directly from your browser. But it's not the same as part of the QuickBooks Online print feature.
Also, you'll want to run and customize the Transactions List by Vendor report to access the bills of your vendors.
Check this link to learn more about Enter bills and record bill payments in QuickBooks Online.
Furthermore, if you still need help with your account, I recommend contacting our Customer Care Team. That way, one of your care agents can further check your account in secure form.
Drop a comment below if you have additional questions. I'm around to help you!
Thanks for your reply, however No you are wrong. What I actually want is for the software to be compliant with Australian Taxation Law. The source code is written by Quickbooks for Reckon Australia, and we have played this blame game for many years back and forth from reckon to Quickbooks.
What I need is not a workaround that does not comply with Australian Taxation Law, but rather for you to listen to the easy fix I have provided and just allow your customers to print a Supplier Bill by using the same code written for Tax Invoices and apply it to Supplier Bills. Very easy. Less than 30 minutes coding work. You guys dont even understand what we need to comply with, if you di you would see that none of your solutions provide a solution, my solution is the only one that allows for all the requirements under Australian Law to be met. Funnily enough it is also the easiest solution.
Thank you for the detailed post. I understand how the Print Bill feature you want would help you and other users by using the same code written for Tax invoices. We are also open and value feedback like this. However, I suggest you directly send a request to our Product Development team. Go to your QuickBooks Online account and click on the Gear icon and select Feedback.
Intuit always finds more ways to make QuickBooks Online meet all businesses' needs. I'll take note of this so I can forward this to our developers so they can come up with a way of handling printing bills.
QuickBooks Online Community is always here if you have more concerns. Have a great rest of the day!