Withholding Tax creates double entry in Invoice
When an Invoice is created, The withholding account is suppose to be credited but in this case the withholding account is debited and credited at the same time.
This is creating a debit entry hanging in the withholding account when payment is done.
Normal Scenario
1. Invoice :
DR Expense
CR Liability
CR Withholding
2. Payment of non withholding amount
DR Liability
CR Bank
2. Payment of Withholding Amount
DR Withholding
CR Cash
Accounting Entries we have, which is causing issues
1. Invoice
DR Expense
CR Liability
DR Withholding
CR Withholding
Other entries are fine.
0