withholding tax at the time of invoice

[Former Member]

Hi ,

is there any way to post the invoice with withholding tax at the time of invoice and considering the cash discount?

for withholding at the time of payment, it is there..but how manage it for posting at the time of invoice.

thanks,

i will assign point.

-please reply..quite urgent.

.

[Former Member · Accepted solution]

Hi Prashant,

If i understand ur question properly, u r asking is that system will deduct the cash discount automatically, only then it will calculate the withholding tax amount on posting invoice.

If i am correct to understand ur problem, then the solution will be -

Financial Accounting Global Settings (New) - Document - Document Types - Define Document Types for Entry View

Under the above mentioned path u have to make changes to the document type or to define the new document type which will automatically calculate the discount amount from vendor invoice. There is one tick in control data of net document type, for your purpose u have to opted this tick, so that system will automatically deduct the discount amount from invoice. Then the next step is to configure the withholding tax type for invoice posting as per the under mention path -

Financial Accounting Global Settings (New) - Withholding Tax - Extended Withholding Tax - Calculation - Withholding Tax Type - Define Withholding Tax Type for Invoice Posting

Now u have to make changes to your withholding tax type that it should calculate the tax amount from net amount or if u can make changes to the existing one then better u define the new tax type for invoice posting.

Financial Accounting Global Settings (New) - Withholding Tax - Extended Withholding Tax - Calculation - Withholding Tax Type - Define Withholding Tax Type for Payment Posting

Under the above mentioned path for payment posting, there are two options of cash discount settings. You can choose one of them as per your requirement. These are basically for calculating of tax amount before deducting cash discount amount from base amount or after deducting discount amount from base amount.

Hope the above suggestion will solve your problem.

Regards,

Prafful Kansal

Edited by: Prafful Kansal on Apr 1, 2009 10:04 AM

[Former Member]

This requirement is back 4th time in 2 days. As consultants, don't you think we should not just listen to users' strange requirements and start getting bogged down. On this particular issue, why don't you ask your user as to how he would know what will be the cash discount at the time of invoice posting. Cash discount is something given by the vendor to us if we make PAYMENT before the due date. If you are talking about volume discount, why not post the net amount (after discount) as base amount and let the WHT get calculated on it?

Seniors in the forum may throw some more light on this.