Withholding Payment

[Former Member]

Hi Experts -

We have Extended WT active in our company. We have set it up to be deducted at payment time.

This is the issue:

1. Vendor A was subject to WT and 31% was withheld at payment time. The remaining amount was paid and the check has been cashed.

2. Now he doesnt want the amount to be withheld and wants the withheld 31% also paid.

What are our options?

Thanks and Regards.

Sam.

[former_member380737 · Accepted solution]

I am not sure if you can hit your tax liability manually or not. In case 'automatically tab is not enabled for this GL Account you can post a rectification entry:

Tax Liability A/C Dr.

Vendor Cr.

Once the vendor liability is created you can pay it back.