Hi, I'm posting this query here because the other thread seems to have gone dead. Can I perhaps simply restate my problem and maybe someone can point me in the right direction.
1. I am a subcontractor who issues CIS invoices to my main client. CIS is enabled in my QBO package and the balance of CIS suffered is accurately reported.
2. When I run payroll my HMRC payroll liabilities are correctly calculated.
3. Each month I pay the net of my HMRC Payroll liabilities less my CIS suffered in the period to HMRC. This transaction is matched to my payroll liabilities through my banking update. So far so good.
4. When I look at my balance sheet I see that I still have an outstanding HMRC payroll liability (equal to the CIS suffered in the period and I have a balancing current asset called CIS suffered.
5. I want to know how to reflect the fact that the asset has been used to remove the liability. Its been suggested that I 'journal out' this transaction.
6. I've created a journal entry which debits the HMRC pension liability and credits the CIS suffered accounts - this makes the balance sheet look correct; however when I now 'fetch CIS suffered' for my HMRC return the running total for the year to date has been reduced by the value of the journaled transaction. This is confirmed when I run a CIS report - which shows the journal transaction as reducing CIS suffered.
I need advice on the form of a journal entry which will make the balance sheet adjustment without adversely affecting the reporting of my running CIS suffered total.
Thanks in advance for any help/ guidance.
