When you post an invoice from a subcontractor, the full balance of the invoice shows as outstanding on the subcontractor record. Any required deduction applies automatically when you pay the invoice.

TIP: For details of which nominal codes are subject to a CIS deduction, please refer the CIS nominal codes guide.

We'll run you through the steps on how to pay subcontractors below.

Pay a subcontractor invoice

1. On the navigation bar, click Subcontractors then click Supplier payment.
2. Click the Bank A/C Ref arrow, then click the bank account you want to use.
3. In the Payee box, type the subcontractor account reference, or click the arrow then double-click the reference.
4. If a Select Payment/Allocation type window appears, click the Pay invoices only option, then click OK.
5. In the Date box, enter the payment date, then for each invoice you want to pay, click the invoice line then click Pay in Full.
   
   The Payment column shows the amount paid to the subcontractor. Any CIS deduction amount appears in the CIS Tax column.
   
   

    NOTE: You can't enter part payments or allocate payments on account against subcontractor CIS invoices.

6. Click Save, then click Close.

This posts a purchase credit for the CIS tax deduction and a purchase payment for the amount you pay to the subcontractor. When you do your bank reconciliation, the purchase payment matches what was paid from your bank account.

Pay a batch of subcontractor invoices - Sage 50 Accounts Professional only

1. On the navigation bar, click Subcontractors then click Batch supplier payment.
2. Click the Bank A/C Ref arrow, then click the bank account you want to use.
3. In the Date box, enter the payment date.
4. Click the Payment/allocation type arrow, then click Pay CIS and non-CIS invoices.
5. For each invoice you want to pay, click the invoice line then click Pay in Full.
   
   The Payment column shows the amount paid to the subcontractor. Any CIS deduction amount appears in the CIS Tax column.
   
   

    NOTE: You can't enter part payments or allocate payments on account against subcontractor CIS invoices.

6. Click Save.

This posts purchase credits for the CIS tax deductions and purchase payments for the amounts you pay to the subcontractors.

For more information on other ways to post subcontractor CIS transactions - Read more >