How to create CIS transactions in QuickBooks Online

Creating a CIS transaction in QuickBooks is much like creating a normal transaction. With CIS turned on, we’ll create the accounts you need to be able to track it. That means, when you create CIS transactions we'll calculate the CIS withheld.

QuickBooks creates the relevant accounts in your chart of accounts. These can be found in the Chart of Accounts and the Products and Services list. We’ll show you how to record paying subcontractors, receive payments from contractors and create transactions using bank feeds.

If you haven’t already, add a contractor or subcontractor.

You can't add an expense or bill which needs to have the CIS withheld amount included from the banking section. You'll need to manually create the bill/expense before matching the bank transaction.

Note: QuickBooks sometimes categorises transactions into the Uncategorised Income or Uncategorised Expense accounts – these are temporary accounts. If you can, always categorise the transactions directly into income or expense accounts.

How to record paying a subcontractor

1. Select +New to create a Bill or Expense. 
2. When creating your transaction, select your subcontractor, QuickBooks will use their CIS rate to calculate the CIS to deduct (CIS withheld). If materials are a part of this transaction, you can add these on here too.
3. Don't forget to enter the full (gross) amounts for each item. QuickBooks will do the calculations for you.
4. Save and close.

How to record receiving payments from contractors

Subcontractors will create an invoice or sales receipt when receiving money from a contractor.

1. Select +New to create an Invoice or Sales Receipt. 
2. Select the contractor and QuickBooks will use your CIS rate to calculate the CIS to deduct (CIS suffered). If you're charging for materials on this job, you can add these too.
3. Save and close.

How to create transactions using bank feeds

It's possible to match or add CIS transactions using your bank feeds. When downloading bank data, we'll try to find a match with any transactions you created manually. If there isn't one you can add it.

1. Go to Bookkeeping and select Transactions.
2. Select a transaction to review the details. It will expand to show you the info we need to add or match your transaction.
3. Choose a transaction type. CIS can be calculated on bills and expenses (when paying subcontractors) or sales receipts and deposits (when receiving payments from contractors).
4. Select a subcontractor or contractor from the drop down. This lets us know it's a CIS transaction.
5. Click Add. We will calculate and apply the CIS to this transaction for you.

Check out the CIS guide for more help.