I have entered up a bill from a subcontractor with both labour £700 and materials £50. I posted the materials total to CIS supplies and materials reimbursed. However, on my CIS return the gross payment is showing as the labour portion of the bill only £700 and the figure for materials is zero. The tax deducted is correctly shown on the return.
Am I using the wrong account to post the materials to?
I worked this out for myself Emma as I didn't receive a reply from anyone - there are two CIS Supplies & Materials accounts - one is an Income account (full name CIS Supplies & Materials Reimbursed) which I was using incorrectly. The correct one to use is the Cost of Sales account.