How to enter withholding tax on invoice without reducing transaction amount?
Summary:
How to enter withholding tax on invoice without reducing transaction amount?
Content (please ensure you mask any confidential information):
We want to enter withholding taxes in the invoice and have tried the following workarounds:
- Enter a negative invoice line
- Use a negative tax rate
However, both workarounds reduce the transaction amount by the amount of withholding tax. These are the entries we want to achieve:
- Upon billing, the withholding tax will be recorded as "AR - Withholding Tax" since this is still a receivable from the customer at this point
Dr. AR - Trade
Dr. AR - Withholding Tax
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