Skip to Content
author's profile photo Former Member
Former Member

Withholding Tax code to allow A/P to reduce invoice

HI Gurus,

I would like to configure a withholding tax code to allow accounts payable to reduce an invoice by 46.5%. Accounting wise, this would need to Debit full invoice amount to expense etc and credit withholding account and therefore only paying the vendor net amount.

please suggest the configuration process and guide me?

Regards

Krishna

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

3 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on May 02, 2008 at 04:41 AM

    HI,

    In Define Withholding Tax Codes and in Base amount Percentage subject to tax give 46.50% and also give the tax rate in calculation With/Tax rate.

    Reward if useful.

    sarma

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Jul 11, 2008 at 11:05 AM

    Hello Krishna,

    Complete the config as below:

    SPRO - Financial Accounting - Financial Accounting Global Settings - Withholding Tax - Extended Withholding Tax - Calculation

    Check if you want to levy the W/tax on Invoice posting or Payment posting. Set W/tax type on Gross amount.

    Go to Withholding Tax Codes - Define Withholding Tax Codes

    Maintain an entry by making 100 % Percentage subject to tax and maintain W/tax Rate of 46.5%.

    It should work as you want.

    Assign points if helpful.

    Regards,

    Sumit S.

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Apr 01, 2009 at 05:26 AM

    Hi Krishna,

    As per my understanding u want to calculate the tax amount on remaining 53.5%. In configuration of tax code under the amount subject to tax u enter the remaining 53.5%, so that system calculate the tax on remaining amount. Another configuration is for tax type, under this step choose for net amount option because u want to reduce the base amount from net amount or if u want to reduce base amount from gross amount u choose the option for gross amount.

    Hope it may help u to solve ur problem.

    Regards,

    Prafful Kansal

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.