Posting Withholding Tax for Greece

[Former Member]

Dear All,

Can you please help me on this?

I need to setup Extended Withholding Tax posting for Vendors with the date of invoice. Standard Posting Indicator 1 in WHT Code posts vendor invoice as follows with base amount 1.000 and 20% WHT:
- Vendor (A/P) - 800 Credit

- Expense account - 1.000 Debit

- WH Tax account - 200 Credit

...so amount of AP posted on Credit is reduced by amount of WHT.

According to my Greek customer, this is their legal requirmeent to post the invoice like this:

- Vendor (A/P) - 1.000 Credit

- Expense account - 1.000 Debit

- Vendor (A/P) - 200 Debit

- WH Tax account - 200 Credit
...so amount of WHT needs to be posted on Vendor Debit.

How to achieve this kind of posting? Thank you for your Help.

Regards,

Jolanta Sniegucka

[former_member198650]

Hi Jolanta,

It is not possible the above entry. However system will post the Tax amount i.e.200 debit to another account instead of vendor. You have to select the posting indicator as 2 in the withholding tax code creation.

Regards,

Mukthar

[Former Member]

Hi Mukthar,

I tried all available indicators. Indicators 2 and 3 are posting Tax to another account, true. But this is not what the client wants. And having tax posted to another account, system will pay the invoice to vendor in full amount, i.e. including WHT. And this is not correct, tax needs to be deducted from the payment.

Anyway thank you for your answer, confirming there is no standard solution.

Regards,

Jolanta Sniegucka