I have a query about posting CIS deductions on sage line 50. We are a contractor who has 20% deducted from us and also deduct 20% from subcontractors who work for us.
For our subcontractors we always post the invoice, then credit the 20% to nominal code 2212 and then process a bank payment when paying the subcontractor.
My query is this: When we receive payment from a contractor and a deduction statement showing the amount of CIS deducted from us, we allocate the amount received against the invoice and create a credit note for the amount of CIS deducted. Should the nominal code used for the credit be the same as the one used for our subcontractors (2212) or should it have a separate nominal code?
Hi Cath.
I would keep the two separate so that it is easier to reconcile when you pay over the deductions you have made from your subcontractors and claim back the cis you have had deducted as a subcontractor
Sorry can't give an idea of nominal code cos not at computer at the moment
Regards
Mark
