CIS with Sage 50 Accountant Plus V13.03

[BarryH59]

Hello All

I need to start paying a sub-contractor for a few months of work but I am lost with the sequence I need to go about entering the details on the system. I have a few other aspects that need sorting out with it.
1)I will make a 10% Retainer deduction until the work is passed by client.
2)I will make a charge of 2% to cover the extra PAYE insurance cost as he is not covered.
3)The CIS rate is 20%

When I enter his Invoice on the system do I then create the credit note for these extra items or do I do that when I make his payment.

I have looked at the following to cover this transaction:
6003 Labour Only Sub-Contractor
8206 Insurance Charge
2250 Sub-contractor CIS Tax Due

What is going to be the best way of doing the retainer should I deduct this from his invoice total amount to ensure his account is credited with the amount until it gets repaid when the work is passed as OK?

If anyone can help point me in the right direction, I think I know what I need to do but my confidence is holding me back, having somoene else run through it would be a big comfort.

Many thanks
Barry

[brucedenney]

the retainer is only temporary, ie it will get paid later on when everything is agreed as okay and finalised.

Create an account in the balance sheet for retainers.
say 2260 - Sub contractor Retainers

When you release the retainer you invoice back against this account to bring it back down or you journal it back into the P&L if it is forfeited