I am a contractor. eg.: Invoice for $1000. receive $750 because customer withheld tax.
I started making an adjustment note and attached to invoice as an "other expense". But this doesn't seem right now.
I end up with 3 rows. Initial invoice. Payment. Adjustment.
Also what is the correct "status" of these rows once this process is right. Thank you
I'll try and answer your question as best as I can.
It is best to match the payment received from the bank feed to the invoice created in QuickBooks.
When you see the transaction come up in your bank feed, you can select it then select Find Match, find the corresponding invoice related to this transaction then Save.
Even though the amount received is less than the total invoice, they will still match up with the left over amount of money to pay still open.
The correct status for paid off invoices should be Deposited. This signifies that the money has been paid off and deposited into your account.
I hope this clears things up for you, let me know if you need further clarification.
Thanks for your reply..
I haven't ever seen Deposited. In sales transactions, usually next to Invoice it says paid and next to payment closed.
I'm not sure how to get the deposited result.?
Your solution to leave the remainder ( withholding tax ) out of the system.
When I receive payment it must balance or will forever say partially paid.
I thought everything had to balance ?
I'm so confused!
Hi again mikeyquick,
The 'Deposited' status can be seen when you go to the Sales tab then go to the Invoices tab, you will see the Status column there.
In regards to the payment made without the tax, could you tell me a little more as to why this customer has not paid the tax associated with the invoices amount?
Does this invoice require the tax? If not, you could potentially amend the invoice amount to reflect the price without the tax so that everything balances correctly?
Would love to know more about this specific transaction and how you would like to reflect it in QuickBooks.
Hello Thanks agin for your reply.
Yes I see deposited in Invoices page, all my invoices are that. Thanks.
I was referring to ALL Sales page.
I still don't understand what the status should be for that page.
The other matter tax.. Are you in Australia?
Please see the first example I gave.
Employer takes tax out of gross amount. Sends you Nett amount. Send tax to Gov.
I need to know how other Aussies are reporting this..
If the invoice has been paid off then the status should be PAID.
In regards to the tax matter, yes I am in Australia but I am not a certified accountant or bookkeeper so I cannot give any tax advice.
You might need to speak to a professional about this to get a clear answer as to how to account for this.