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Quickbooks Online Invoicing

David
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  • 424 posts
  • # 108985

I have another query that I didn't think would come up.

The firm I work for are costs lawyers, they deal with the figures side of the compensations claims. Now the problem I have is this: Some claims are split (not that easy yet), whereby one party - the insurer will pay the net amount and the insured pay the VAT.

I haven't yet found a way of splitting the amounts either on separate lines or separate invoices. Not really that much of a problem if both parts are paid in the same VAT quarter, but that is not always the case. As I cannot find anywhere of entering VAT as a different figure, how would I go about this?


I bet this has a simple answer Embarassed


EDIT: I forgot to mention that I use Quickbooks Online for this particular company.



Edited at 04 Jun 2015 09:59 AM GMT




Edited at 09 Jun 2015 03:28 PM GMT
DaveWhite
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  • # 109035

Hi David,

Could you do one invoice to Insurer with No Vat and another invoice to the insured with two lines, the first being for the net amount plus vat and the 2nd line the net amount, no vat. This would make the 2nd invoice just have vat on it.

Dave
David
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  • # 109037

DaveWhite said:

“

Hi David,

Could you do one invoice to Insurer with No Vat and another invoice to the insured with two lines, the first being for the net amount plus vat and the 2nd line the net amount, no vat. This would make the 2nd invoice just have vat on it.

Dave

”

 Hi Dave

I will give that scenario a try and let you know.

Thanks for the suggestiion.
David
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  • # 109048

DaveWhite said:

“

Hi David,

Could you do one invoice to Insurer with No Vat and another invoice to the insured with two lines, the first being for the net amount plus vat and the 2nd line the net amount, no vat. This would make the 2nd invoice just have vat on it.

Dave

”

 Hi Dave (and anyone else reading this)

That worked.

First line with net and vat, the second line with a negative net amount and no vat, leaves just the vat as the total

Thanks again.
Lady of Ledger
  • 491 posts
  • # 109116

I had this same problem with a client that had an invoice from a vehicle repair, where the insurance claim had paid the repair costs net - but would not pay the VAT, the client had to pay the VAT.

I ended up phoning QuickBooks, because in the Desktop version, you can do this by using the Z code on a nil amount, then edit the VAT box - but the VAT box is not editable in QBO.

The answer was more or less what you've done. They told me to put a £1.00 transaction on the first line with a S 20% VAT code, then on the second line, put a minus £1 transaction with a 'No VAT' code - this then makes the VAT box editable - so you can enter whatever the VAT actually is, with the transaction being nil to any QBO account.

  • Carol Saunders
    Lady of Ledger Book Keeping
    Telford, Shropshire



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David
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  • # 109118

Thanks Carol

I do appreciate your input and found that it does indeed work.

One other quick question:

To apply a credit note to it's particular invoice. Is it as easy as going through the receive payment screen but not filling in any of the amounts? 

If I received a payment from a client/customer then I would put in all the relevant details, select the invoice and it's credit note which would give me the amount paid. But if the client wanted the invoice sent out with the credit note already applied, would I just go through the same screens selecting the invoice and it's credit note?

Is this process reversable?
Lady of Ledger
  • 491 posts
  • # 109131

Hi David

Yes - if a credit note for the same amount as the invoice has been entered onto the system, when you go to 'make payment' in the top panel will be the invoice, in the lower panel will be the credit note, so one will offset the other if selected accordingly, so the relevant date just needs to be checked, then save and close.

If sending to the client, QuickBooks just marks the invoice as 'paid' in the crediting off process, so I usually go back into the invoice first and add another line explaining that the invoice has been offset against credit note number 'xx' and re-save it. If you do this, then at least on your system, and on the clients copy of the invoice, there is relevant information as to 'how' its been 'paid'. Likewise, I will put on the credit note which invoice number it's credited, or why there is a credit.

Yes this is reversible, for example, if you agreed with the customer to credit off the invoice, then he decided to pay you afterall, you could call up the credit note again and 'up-apply' it, which would then leave the invoice unpaid again, so that payment could be applied and the credit note deleted - but obvioulsy you would only consider doing this if you haven't sent your customer the credit note. 

  • Carol Saunders
    Lady of Ledger Book Keeping
    Telford, Shropshire



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