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.