I have a Gross CIS registered subcontractor that we are holding a 2.5% retention on until 12 months after the defect period has commenced.
We use to use Sage Construction which would record the Invoice net of retention in the supplier ledger for payment, and then record the retention amount in a creditors N/C 2103. It then gave us a report as to the breakdown of this nominal code.
Now that we don't use this software we have the CIS bolt on for Sage 50. When I spoke with Sage about this query they suggested I post the 'net of retention' figure as an invoice using the invoice date, and then post the retention amount as another invoice but date it the date when the retention is due. This doesn't sit comfortably with me as we recognise our retentions as creditors each year and posting it at the date it's due won't recognise it correctly.
The other issue I am coming across relates to the payment screen when paying a subcontractor. I tried to post the invoice in full, using the subcontractor labour nominal code, then raising a credit note to the retentions account so that the ledger is clear (Avoiding paying the retention by mistake!) and that the correct amount shows on the CIS return. However when trying to then pay the Invoice and credit note it asks me to 'select payment/allocation type' and chose between 'Pay CIS and non-CIS invoices' and 'allocate and pay non-CIS transactions' - this meant I couldn't allocate against the Invoice and credit note in the same payment screen.
Help please, is there a way around this?
Thanks in advance