when raising an invoice for say £120 to a contractor in will get paid £100 and £20 deducted for tax
i have raised and invoice for £120 but the bank will show i received £100 where do i put/show the tax deduction
When you create the customer you will have to select is CIS contractor within the customer information. When creating an invoice you select/enter the customers name in the customer field the product and service will automatically populate with the CIS % rate. When you enter an amount the amount of CIS deducted will show in the CIS field and show a net amount that you will then receive in the banking screen and match it up/pay off the invoice.
What you said is correct. It's QuickBooks Online (QBO) that has the option to manage CIS transactions.
I suggest subscribing to a QBO company if you need to record these transactions. You can refer to the Plans & Pricing page to see which version suits you best.
Have other questions in mind? Share them in the comments below, and I'll get back to you.