Does anyone have a work around to the inability to split the CIS sales invoices between labour and materials and still apply the DRC tax code to both items?
It seems that there is a problem with the programming at the moment meaning that it will not let you apply the DRC Vat code to the CIS Materials on sales invoices. It comes up with an error message saying You can't select CIS VAT codes for a non CIS product/service or category ??
According to support there is no work around, but i am now unable to raise any sales invoices as all of mine contain both labour and materials, so wondered if there was anyone who had got round it their own way?
I'm afraid I don't have an answer for this but as I have just come across the same issue I thought I would reply just so I am notified if anyone does respond.
I'lll keep thinking but it is a major problem as all of our invoices also contain labour and materials.
Surely, as this must be a big issue, Quickbooks can amend the RC for CIS rates to allow those who need it to be able to use it for materials too, please?? Or come up with a solution for us?
Sorry I can't help
Hello there, @simonplayuk.
Let me share some information on how QuickBooks handles CIS-related transactions.
When you enable the CIS feature, QuickBooks automatically creates CIS-related service item and accounts.
@mrs renois correct! Currently, we've been receiving reports about the inability to use CIS Reverse Charge VAT codes in invoice line items.
Our product team are working hard to resolve this. In the meantime we suggest that the user itemises the line against the CIS Labour Gross (0%) for sales transactions and CIS Gross (0%) for purchase transactions. Just make sure you also add a memo or description to the transaction..
Also, I'd recommend consulting with an accountant so you'd be guided in managing your VAT and CIS-related transactions.
Lastly, you can read through these articles as additional resources:
Get back to us here if you have other questions or concerns. I'm always here to help.
Thanks for joining this thread,
We're aware that some customers will attempt to use the CIS Reverse Charge in product against a line item such as CIS Supplies and Materials (Income or Expense). We've identified that this is currently not allowing the user to save the transaction. Our product team are working hard to resolve this. In the meantime, we suggest that the user itemises the line against the CIS Labour Gross (0%) for sales transactions and CIS Gross (0%) for purchase transactions. Please make sure you also add a memo or description to the transaction. Once we have managed to resolve this we will update the article as well as send out marketing communications.🙇♀️
We're aware that some customers will attempt to use the CIS Reverse Charge in product against a line item such as CIS Supplies and Materials (Income or Expense).
It's the customer's fault for using the wrong Product/Service?
I'm sorry @GeorgiaC but this isn't right. The implementation of CIS RC in QBO is an utter shambles!
If anyone at QB had actually read the guidance before last Thursday (which is when, I assume, your programmers were allowed to start work on this) you would know that ALL supplies in a contract qualify for RC VAT if the contract as a whole qualifies (subject to a 5% rule) - you CANNOT have some line items Reverse Charged & some not.
It is ridiculous to design a system that the user cannot over-ride (with warnings if necessary). Particularly when QBO Support is so keen on the phrase 'we are not qualified accountants'!
It should be possible to use the RC VAT codes against any line item that I choose.
This change was first signalled by HMRC more than two years ago - it was initially due to start in October 2019 - yet QB waits until the go live date (2021/03/01) to release the actual VAT Codes. This doesn't sound like a major problem, until you think that those codes are required BEFORE anyone can amend invoices templates, test them & find out that your implementation of it is such that an invoice will not save unless all line items are linked to CIS accounts.
As above - this is WRONG!
With all the prevarication about this (seriously, why wasn't this ready months ago?), my hopes weren't high that it would actually work. QB hasn't even managed to reach my lowly expectations. The worst thing is, I can't even say I'm surprised any more ... QB has always been a system that you need to "work around" rather than work with!
Don't be surprised if this is the final straw for many long-suffering customers.