This article explains how to input the transactions for CIS deductions.
Being the main-contractor
Enter the gross in purchases using column D (other direct costs) in the Basic Sole Trader package. Some other packages have a specific category for sub-contractors. Then enter the CIS deducted in column Y.
When you come to do your monthly CIS return you can use the total at the top of column Y.
Once HMRC have been paid, the payments actually made balance what's in the gross. (Net to sub-contractor + Tax to HMRC = Gross)
Being a sub-contractor
DIY Accounting has a area for you to keep track of CIS payments. You do the calculation yourself based on the contractors status / use of materials etc.. and populate the far column (AK) in the Purchases sheet.
DIY Accounting keeps track of the total amount owed to HMRC for the contractors as this is a liability. You'll need to make a note of the deduction for each sub-contractor when issuing a remittance slip to pay their invoices.
Some CIS tips...
Where the tax has been deducted at source and paid to HMRC on your behalf the gross amount amount charged (before CIS is taken off) is entered in column G then the amount of CIS tax applied is entered in column W. The amount of tax paid on your behalf is taken off your tax bill as tax already paid, you can see this in the Income Tax sheet in financialaccounts050411.xls.
When you complete the Sale:
Sales Column F: A, B or C
Sales Column G: Gross figure before CIS deduction
Sales Column W: Amount of CIS tax deducted
When paid: (optional)
Sales Column L: Amount received
Sales Column M: Overwrite with zero when you been paid (it doesn't copy with the deduction)