If your business operates as a principal contractor, you must flag any suppliers who are subcontractors.

Flagging a supplier as a subcontractor enables you to:

• Record and calculate RCT deductions on supplier invoices and credit notes
• Track RCT withheld amounts
• Generate accurate RCT reports for Revenue

You can apply this setting to both new and existing supplier records.

For more on when to use this setting, see: What is RCT and who needs to use it?

Edit an existing supplier as a subcontractor

1. Go to Contacts, then select Suppliers.
2. Find and open the supplier record you want to update.
3. Select the RCT tab.
4. Select the pencil tool to edit the Registered for RCT status.
5. Tick the checkbox next to Registered for RCT.
6. You can also select a default deduction rate from the dropdown menu.
7. Select Save.

Add a new supplier as a subcontractor

1. Go to Contacts, then select Suppliers.
2. Select Add supplier.
3. Complete the supplier details.
4. Tick the checkbox next to Registered for RCT.
5. You can also select a default deduction rate from the dropdown menu.
6. Select Save.

Now that your supplier is a subcontractor, you can apply an RCT deduction rate to their transactions when required.

If you also deal with principal contractors, see: Flag a customer as a principal contractor.