Withholding in AR

In Philippines, there is withholding tax imposed by government. For invoices we issued to customer, they may subject to different withhold percentage, e.g.. 1%, 2%, 5% depends of the nature of sales.

Take example that the withholding percentage is 3%, sales amount is PHP 1000, VAT tax amount is 7% = PHP 70. On tax invoice, we print PHP 1000 + VAT Tax PHP 70 = Total PHP 1070 with When customer pay us, they withhold 3% = PHP 30, and pay us PHP 1040. When we perform AR receipt in JDE, the AR invoice need to be treated as fully settlement. We understand we can setup AR write off reason and perform a write off when do a matching.The write off reason code can then point to a withholding VAT account.