I have Quickbooks: Small Business Edition 2003(I'm in Australia). I am
looking for some way to create a 'Recipient Created tax Invoice'.
An employee has sold me a vehicle, and although he has a registered business
number (ABN), he doesnt actually use it much, and I think his mother does
his bookwork most of the time. Getting him to produce a tax invoice is nigh
Is there some way to do this at my end with this version of Quickbooks? Can
I create an invoice, which I can then pay? I'm not looking to do anything
sneaky here, but it would save a lot of grief if I could create the invoice
myself, and then give him a copy, along with the payment receipt. What he
then does from there on is his business.
Any advice would be appreciated.
I don't think you can do this in your copy of QB as invoices will always
have your company name & address at the top. Since you want an invoice with
his company address on it, you would need to create a QB skeleton company
with HIS company info and create the invoice in that company. It might be
faster to create one in Excel or Word instead? The Microsoft site has a lot
of templates that you could use.
Thanks for this. Finally got hold of the accountant this afternoon, and she
suggested the same(Word or Excel). It's not going to happen often enough to
justify the messing around with setting up another company...
Do any of the small-business versions of Quickbooks allow this? Later
version, or would I have to go to one of the enterprise versions?
Thanks for the reply.
I don't believe there is any accounting software in the world that
will let you create someone else's invoice. You say this is "not
going to happen often" (and it SHOULD NOT!), so why are you trying to
produce a tax
It does happen in one case that I know - a printer produces stationary
for a bank and is obliged to keep the bank warehouse stocked with a
minimum amount of the various items. The items are not paid for until
drawn out of the central warehouse.
The bank distributes the stock amongst its branches, then produces a
'self-invoice' which it files and then sends a copy to the printers
along with payment.
This saves the bank telling the printers what it has used, and then
waiting for the printer to generate an invoice.
I beleive there is also a need for it in multi-level-schemes like
Kleeneeze, where the man on the street needs to pay the supplier the
money he has collected, less his commission - so he self-invoices for
the goods less his cut and sends the invoice and cash in.
Dunno where in the world you are, but here in the UK its apparently that
common and accepted that our vat people have a flyer on it:
HMRC Reference: Notice 700/62
Self-billing is an arrangement between a supplier and a customer in
which the customer prepares the supplier's invoice and forwards a copy
to the supplier with the payment.
This document is available for download only, in PDF format. If you do
not have a PDF viewer, please see the information box on the right."
I don't agree. I have been asked in the past to create invoices as the buyer
by my boss. My boss wanted a paper invoice to put into the filing cabinet. I
have either created a new company or used our company's excel file template
and just changed the company name and address as needed.
I think that what you are doing is different from what Sharky
described. The self-billing that he refers to is subject to very
specific guidelines and limitations imposed by Inland Revenue and
requires a very specific agreement between buyer and seller. What you
describe, and what Original Poster asked about, is the creation of a
fictitious document with no legal validity. The fact that you don't
(can't) use your accounting software confirms my point. I admit,
though, that I was not aware of the apparent frequency with which
self-billing occurs (at least in the UK).
Its not a fictitious document; the reason I asked is so that I can produce a
document that has legal standing. One copy will go into my account files,
and the other to the employee who is (in this instance) the supplier.
Another reason I asked is that people using another brand of small-business
accounting software CAN create these documents. If it was a regular
occurance, I would consider changing my accounting software.
Not that I really want to get into the details, but the employee asked me if
it was possible for me to do this. If possible, I will try to help him out.
Nothing sneaky, or underhand is going on; we just want to make sure we have
a proper paper trail if\when either of us get audited.
My accountant has advised as to how to create such a document using Word,
and that will be the easiest option for me.
Many thanks to Laura for explaining it wasnt possible in Quickbooks SBE. My
second question was if any versions of quickbooks DO allow such a document
be created. I was actually thinking aloud as to whether I had actually seen
any benefits of upgrading from 2003 yet. Doesnt look like it (for me,
Anyway, thanks to all who had suggestions.
Reading a bit in the link I posted in another thread, it is Kosher and
quite common in the UK.
The typical example of someone who might use it is where the end-user
decides the value of the goods supplied (under the terms of the contact
between the two).
For example, if a refiner turns grain into flour and then sends it to
the recipient by lorry - then at the recipient it would be weighed, and
sample taken to test the quality (number of spiders per tonne etc) and
the sender would be due payment based on weight/spiders delivered.
The weight/spiders test needs to be done at the recipient end both for
customers peace of mind (I got what I ordered) and also because the
transport allows introduction of water (adding weight) or loss due to
theft/drying out, and spiders can get in during shipping.
So, we've decided that the end-user is deciding weight/value - why let
him self-bill - well otherwise he has to communicate these details to
seller, the seller has to admin and post the invoice, and then the
seller has to send the cheque.
Self-billing allows two postal steps to be omitted from the chain,
saving time and cost. In principle, the lorry can be weighed at a
weighbridge and by the time it has unloaded the payment can be on its
way to the suppliers - perhaps they want COD, so the lorry driver can be
taking away a bankers draft for the correct amount without the supplier
having to raise a finger to the billing process.
As to how the invoices are raised, I guess it would either be done via a
separate accounts package/company file/word etc or I guess you COULD do
it via QB by entering the details into QB as a BILL, then printing the
bill out onto pre-printed stock showing suppliers details so it looks
like a invoice.
You can't issue an RCTI in QuickBooks, even if you are allowed to under
the GST legislation.
Three broad classes of RCTIs
10. The Commissioner has determined under subsection 29-70(3), that
three classes of tax invoices may be issued by a recipient of a taxable
supply.F2 These classes are:
tax invoices for taxable supplies of agricultural products made to
registered recipients who:
satisfy the requirements for issuing RCTIs, and
determine the value of the agricultural products (and any by-products)
subsequent to, and dependent upon, quantitative or qualitative analysis
of the supply being undertaken (see paragraphs 22 to 24);
tax invoices for taxable supplies made to registered government related
entities that satisfy the requirements for issuing RCTIs (see
paragraphs 25 to 27); and
tax invoices for taxable supplies made to registered recipients that
satisfy the requirements for issuing RCTIs and that:
have a turnover (including input taxed supplies) of at least $20
million annually; or
are members of a group of companies, partnerships or trusts, or a joint
venture operator, in which one or more other members of that group or
participants in that joint venture have such a turnover.
So you have to meet these conditions before you can do such a thing. If
you do, then you may be able to customise one of QBs documents to
prepare it, but it will have to meet the requirements of the ruling.
If you want to read it, try the following:
Of course, the supplier must be registered for GST, not just possess an
ABN. In any case, you need a document to evidence your purchase, but if
your employee is not registered for the GST, neither he, nor you, can
create a tax invoice of any sort.
I hope this helps.
Bob Williams, CPA
Further to my earlier post, turn on stock and purchase orders and you
could customise a purchase order template to be an RCTI (consult the
ruling for the format) if you meet the conditions to be an issuer.
Then issue the purchase order to buy the vehicle and print it using the
customised purchase order. You will have the create an item
(non-inventory ITEM although it doesn't really matter as long as the
asset account you use is motor vehicles at cost, GST code CAG if your
employee is registered for the GST, CAF if he is not) for the car.
That should do the trick rather than use Word (although that is not a
bad idea either).
Bob Williams CPA
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