How can I use CIS with ApprovalMax?
Construction Industry Scheme settings for Organisations
You need to set up CIS in Xero. To do so, go to the Accounting menu and select Advanced, then open Financial settings.
Under Construction Industry Scheme, select whether you are a registered contractor, subcontractor, or both, and specify all relevant data.
If you're a subcontractor, select your Subcontractor Deduction Rate.
- CIS account codes
Once you've set up CIS in your Organisation, Xero automatically creates the relevant CIS account codes for your chart of accounts.
If the account code shown below is being used by another account in your chart of accounts, Xero uses the next available code at the end of your chart of accounts list. For example, if 321 is already used, and the highest number used on your chart of accounts is 980, Xero will use code 981 for the CIS Labour Expense account.
To reflect a CIS deduction, use 210 - CIS Labour Income for Sales Invoices and AR Credit Notes, and 321 - CIS Labour Expense for Bills and AP Credit Notes.
- If you’re a contractor, add CIS information to your subcontractor contact records:
If you’re a subcontractor, create a transaction that uses CIS account codes.
Construction Industry Scheme (CIS) support
What is CIS? Contractors and subcontractors in the UK construction industry are subject to special rules and regulations within the Construction Industry Scheme (CIS). Under this scheme you can manage contractor invoices, subcontractor bills, file ...
How to create a Bill with CIS deduction
If you are a contractor paying subcontractors for construction work, you’ll probably need to make a CIS deduction on such Bills. Xero will automatically calculate the CIS deduction for a Bill (Accounts Payable Invoice) if two conditions are met: The ...
How to create a Sales Invoice with CIS deduction
If you are a subcontractor doing construction work for a contractor, you’ll probably need to make a CIS deduction on your Sales Invoices. Xero will automatically calculate the CIS deduction for a Sales Invoice (Accounts Receivable Invoice) if two ...
What is the Construction Industry Scheme (CIS)?
In the UK construction industry, contractors and subcontractors are bound by specific rules and regulations outlined in the Construction Industry Scheme (CIS). This scheme governs various aspects of financial management, such as contractor invoices, ...
How to create an AP Credit Note with CIS deduction
First, set up an AP Credit Note workflow in ApprovalMax. Then, create a Credit Note in Xero, specify the CIS Contact and CIS account for Accounts Payable, save the request and submit it for approval: Sync the requests from your Xero Organisation to ...