QBO Credit Memo for CIS Invoice

Thank you for posting in the Community today, Karen.

I thought of the same thing but cannot confirm it because we're unable to provide advice in this case. Please refer to an accounting professional or a bookkeeper. This way, they can provide the best advice on how to handle your transactions.

If you have any other concerns, feel free to go back to this thread.

Hi @Kaz24 

Truth is that Intuit / QB do not understand CIS.  Certainly not when it comes to credit notes.

By not building in the CIS function into Credit Notes, QBO treats them (for CIS purposes at least) as a part payment rather than a reduction in the value of the work done.  Since CIS is cash-based (the deduction date is the date of payment) QBO is effectively saying that the work was done, the credit note was the payment & the deduction is owed to HMRC.

Ridiculous!

It's been raised as an issue on here many times over the last few years (both sales & purchase credits have the same problem).

The easiest option is persuade the customer to accept a corrected invoice.  If you noticed it so quickly, they surely won't have logged it onto their system.

Alternatively, void & raise a new 'correct' invoice.

If the customer insists on a credit note, the only workaround I can find is discussed here ... https://quickbooks.intuit.com/learn-support/en-uk/transactions/how-do-i-create-a-cis-credit-note-to-...

Hope this helps.

Hi@paul72 

Thank you so much for your reply.  The customer was very understanding and accepted a corrected invoice.

It is absolutely ridiculous!  QB/Intuit need to get this sorted!  I wasted hours on this, I thought I was doing something wrong.  I used Desktop for 10 years and never had a problem I couldn't solve, way better than Online version.

I understand the workaround and will keep it for future use, hopefully I won’t have to use it.  Once again, thank you for explaining it and your assistance.

Regards