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  • 13-05-2022 3:07pm
    Registered Users Posts: 1 Dobbie123

    Hi, I'm really new to this program. I'm a subcontractor and my customers are main contracts. Most contractors deduct my invoice by 20% for RCT. I know that I can get this back from Revenue but I don't know how to post invoices received correctly. Say a contract is worth is 1000 euro. Do I post the full 1000 to the contractor or do I just post 800 euro to the contractor. If so where do I put the other 200 euro? Please help....I'm really struggling; thanks.

    Post edited by Dobbie123 on


  • Registered Users Posts: 89 ✭✭ nekuchi

    I don't know if there is a 'standard' way to do this, if this is the correct way to do it or indeed if you've sorted your question already but...

    You are the subcontractor

    Invoice the principal contractor (customer) the full amount, putting it against your sales nominal.

    When you get paid the invoice less the 20%, create a *credit note and put that against your RCT nominal. Do not give this to the customer, this is for internal purposes only.

    As the invoice is, in theory, fully paid - allocate the receipt and the credit note to your invoice.

    You are the principal contractor

    Input the invoice to the relevant nominal (eg a 'subcontractors' nominal) from your supplier.

    When you have processed the invoice on ROS and there is RCT to be noted, create a *credit note and put that against your RCT nominal.

    As the invoice is, in theory, fully paid - allocate your payment and the credit note to your invoice.

    At the end of the month you should be able to reconcile your RCT nominal against what Revenue have on record for you.

    I hope this is of some use but if there is anyone out there that might know better please do let us all know 😀

    *I always get confused between credit note and debit note for customers/suppliers

  • Registered Users Posts: 484 ✭✭ tvjunki

    I do this differently.

    I use the current account and a c45 account(tax deduction or payment account)

    As a subcontractor scenario.

    I set up a customer account. Send the invoice to the client with the full amount.

    Then in the bank section I have a current account and also a C45 account. The c45 account is where I deal with the deductions or refunds from Revenue.

    Payment received. I go into the current account and show payment received from customer and assign to the customers account €800.00.

    Then when I receive a reconciliation from Revenue showing the receipt of the €200 and I have requested a refund. The amount arrives into the current account and I do a transfer from the current account into the C45 account and assign that amount. No credit notes needed.

    If you leave it in the Revenues account I go into the c45 account and assign the €200 to the invoice at the end of the month.

    As a principle.

    I set up a supplier account and also use the same C45 account in the bank section.

    Subbie sends me an invoice€500. Revenue say deduct 20% so I withhold €100. I pay the subbie from the current account and match the payment to the supplier.

    Then the following month when I pay over the €100 to Revenue. I do a transfer from the current account into the C45 account. I name it say Jun22 c45 and this will appear the c45 account. Then in the current account section you will see the transfer. I then go into the c45 account and assign the €100 to the subbies invoice and the subbies account is clear.

    Subbies account clear.