How do you enter a self billing invoice from a supplier on QuickBooks?

Hello Paz2834, 

Welcome to the Community page, 

So you could enter it as a bill or an expense it would depend on how you want to show it. I would suggest you ask a trained and qualified accountant this question, as they will be able to advise and guide you on the correct way to enter it into your account, as we are just technical support and not trained accountants.  

Hi @paz2834 

Just to clarify - is this something you've purchased (you're self-billing your own company because you haven't received an invoice from the supplier) or something you've sold (the customer has sent you a self-billing invoice)?

If (1) - you need to be careful if you're claiming VAT that you have all their details & VAT number correct.  You really also need the supplier's consent to self-bill https://www.gov.uk/guidance/vat-self-billing-arrangements

It's much safer to chase them for a VAT invoice.

If (2) - you need to create an Invoice in QB - same as you would with any other customer - so that your accounts are correct.  The Self-Bill is for the customer's accounts system - so there's no need to send them your invoice.

Maybe make a note to say that a Self-Bill was received and/or attached a copy of the Self-Bill to the Invoice in QB.

Hope this helps.

Thank you for the reply. We purchased a new machine from a supplier and they took our old machine back in part exchange, so they sent us a self billing invoice for that machine. Then we received a invoice for the new machine and paid the difference. I just can’t seem to get the figures to match up on QuickBooks as if I send them a invoice like I do for the other customers, I can’t allocate the invoice payment to the expense. Just finding it all a bit confusing 

OK @paz2834 

The best way to do this would be to raise your own invoice for the old machine (but no need to send as the supplier has done a self-bill, so their accounts should be square).  The invoice out makes sure that the old asset is off your books.

Enter the supplier's bill (at full value) to bring the new asset on to your books.

QB will not allow a customer & supplier with exactly the same Display Name but you can add Cust or Supp at the end to differentiate if required.

If the customer & the supplier were different companies it would be straightforward.

What's making it tricky is the fact you did not actually receive any payment & only paid part of the supplier's bill.  However, QB does not recognise that they are the same company so you have to work around it a little.

In order to square the payment side of things you need to create a dummy Bank Account in QB.  I call it Contra.  This allows you to make/receive dummy payments as a workaround.

NB: this account should always be £nil balance after use.

(1) Receive Payment into Contra to cover your invoice for the old machine.

(2) Pay Bills > Just the amount above from Contra to the Supplier to Part Pay their invoice.

(3) Pay Bills > from actual bank account for the balance of the supplier's invoice.

Hope this helps.