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Nov 19, 2012 at 11:36 AM

Withholding Tax Code to increase the Expense line item

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Dear Experts,

Please suggest me in the following Issue.

Can we create a Withholding Tax Code, so that it will not reduce the amount from the Vendor, instead it should increase (should be added to) the Expense amount.

For Example:

If we create a Withholding Tax Code, Acual expense amount = 100

Then the entry will look as follows:

Expense Account Dr. 100

To Vendor Account Cr. 90 (100-10)

To Tax Payable account Cr. 10

But can we Configure Withholding tax as follows

Expense Account Dr. 110 (Actual exp 100 + Withholding Tax 10)

To Vendor Account Cr. 100 (Total Actual expense amount)

To Tax Payable account Cr. 10

Please help

Regards,

Ramana.Gottipati