Like regular customer receipts, you can record payments directly on the invoice or from the banking area. 

Before you start, make sure:

• RCT is enabled for your business
• The customer is flagged as a principal contractor

 NOTE: You can't currently use bank feeds for RCT receipts. 

Record the receipt from the invoice

1. Open the relevant Customer invoice.
2. Select Record payment.
3. Enter the Amount paid.
4. Select the RCT deduction rate.
5. Enter the RCT withheld amount.
6. Choose the Payment Date, Bank Account, and payment method.
7. (Optional) Enter a reference or attach a file.
8. Select Record to save the receipt.

 NOTE: All payments recorded against a single invoice must use the same RCT deduction rate. If you need different rates, credit the invoice and raise separate invoices for each rate. 

Record the receipt from Banking

1. Go to the Banking tab.
2. Select the correct bank account.
3. Choose New Entry, then select Sale / Receipt.
4. Choose the Customer.
5. Tick Withhold RCT.
6. Select the Deduction Rate and enter the Amount Received.
7. Allocate the receipt to the correct invoice(s).
8. Select Save to complete the transaction.

Payments on account (POA) with RCT

Use a POA when you receive money before you issue the invoice, or when you need an unallocated receipt.

1. Follow Record the receipt from Banking steps 1–6.
2. Leave allocations blank to keep this as a POA.
3. Select Save.

How Sage calculates a POA

• You enter the net cash you received
• Sage grosses up the Amount liable for RCT using the selected rate
• Sage calculates RCT withheld from the grossed-up amount

Allocate the POA later

• Open the POA from Banking and allocate it to the invoice
• Or open the invoice and match the POA against it