Withholding Tax: Difference between revisions

Latest revision as of 09:10, 25 September 2023

Initial Setup

Withholding Tax Account

Menu : GL | Maintain Account...

GL Account	Description	Remark
460-XXX	WITHHOLDING TAX PAYABLE	Under Current Liabilities

NOTE: 
GL Account code not compulsory to follow.

Maintain Withholding Tax

Menu : Tools | Maintain Withholding Tax...

1. Click New.

2. Input the following data:

Field Name	Explanation	Remark
Code	Set a code	WTH-TAX15
Description	Describe the meaning/usage of this code	Withholding Tax 15%
Tax Rate	Withholding Tax Rate	15%
Tax Account (DR)	Expenses account	<<Follow document accounts>> if leave blank
Tax Account (CR)	Set to Withholding Tax Payable account	At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities

NOTE: 
Tax Account (DR) leave blank

3. Click on Save.

Withholding Tax Purchase Entry

1. In Purchase Invoice, insert the following columns:

WH Local Tax Amt
WH Tax
WH Tax Rate

2. Select the Withholding Tax Code in WH Tax column.

For example,
	Amount
Original Supplier Invoice	15,640
Withholding Tax	(2,040)
Supplier Account Payable	13,600

3. System will auto post the withholding tax double entry. Press CTRL + O to check the double entry.

GL Description	Local DR	Local CR
Expenses Account (follow the document detail GL Account)	XXX
Withholding Tax Payable		XXX

NOTE:
Withholding tax amount will not add into the purchase invoice as Outstanding Amount.

4. Supplier payment knock-off purchase invoice with RM13,600 (outstanding = 0).

Payment of Withholding Tax

[ GL | Cash Book Entry..]

1. Create new PV.

2. Enter Payee name.

3. Select bank account to pay.

4. In detail grid, select the GL Account (Withholding Tax Payable).

5. Enter the withholding tax amount to be paid. Save it.

6. You can check the ledger report for Withholding Tax Payable outstanding balance.

@@ Line 1: / Line 1: @@
 ==Initial Setup==
-===Create Withholding Tax Account===
+===Withholding Tax Account===
-''[GL | Maintain Account...]''
+''Menu : GL | Maintain Account...''
 <br />
-:Create the following GL Account under '''Current Liability'''.
 ::{| class="wikitable"
 |-
-! GL Account !! Description !! Special Type
+! GL Account !! Description !! Remark
 |-
-| WTH-Tax || Withholding Tax || Bank Account
+| 460-XXX || WITHHOLDING TAX PAYABLE || Under Current Liabilities
 |}
+ '''NOTE:'''
+ GL Account code not compulsory to follow.
+<br />
+===Maintain Withholding Tax===
+''Menu : Tools | Maintain Withholding Tax...''
+<br />
+:1. Click '''New'''.
+:2. Input the following data:
+::{| class="wikitable"
+|-
+! Field Name !! Explanation || Remark
+|-
+| Code || Set a code || WTH-TAX15
+|-
+| Description || Describe the meaning/usage of this code || Withholding Tax 15%
+|-
+| Tax Rate || Withholding Tax Rate  || 15%
+|-
+| Tax Account (DR) || Expenses account  || '''<<Follow document accounts>>''' if leave blank
+|-
+| Tax Account (CR) || Set to '''Withholding Tax Payable''' account  || At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities
+|}
+::[[File: WTH-Tax_03b.jpg| 400PX]]
+ '''NOTE:'''
+ Tax Account (DR) leave blank
 <br />
-:[[File: WTH-Tax_01.jpg| 500PX]]
+:3. Click on '''Save'''.
 <br />
-===Withholding Document Number Set===
+==Withholding Tax Purchase Entry==
-''[Tools | Maintain Document Number...]''
+Available in: <br />
+''Menu : [Purchase | Purchase Invoice...]'' or [Supplier | Supplier Invoice...]<br />
+''Menu : [Purchase | Cash Purchase...]'' or [Supplier | Supplier Invoice...]<br />
+''Menu : [Purchase | Purchase Debit Note...]'' or [Supplier | Supplier Debit Note...]<br />
+''Menu : [Purchase | Purchase Returned ...]'' or [Supplier | Supplier Credit Note...]<br />
 <br />
-:1. Create the following document number set for '''Withholding Tax'''.
-:[[File: WTH-Tax_02.jpg| 500PX]]
+:1. In '''Purchase Invoice''', insert the following columns:
+::* WH Local Tax Amt
+::* WH Tax
+::* WH Tax Rate
+::[[File: WTH-Tax_10a.jpg| 300PX]]<br />
+:2. Select the Withholding Tax Code in '''WH Tax''' column.
+::{| class="wikitable"
+|+ For example,
+|-
+!  !! Amount
+|-
+| Original Supplier Invoice|| 15,640
+|-
+| Withholding Tax || (2,040)
+|-
+| '''Supplier Account Payable''' || '''13,600'''
+|}
+::[[File: WTH-Tax_11b.jpg| 200PX]]<br />
+:3. System will auto post the withholding tax double entry. Press '''CTRL + O''' to check the double entry.
 ::{| class="wikitable"
 |-
-! Descripion !! Document Type !! Format
+! GL Description !! Local DR || Local CR
 |-
-| WITHHOLDING TAX || Payment Voucher|| WTHPV-%.5d
+| Expenses Account (follow the document detail GL Account) || XXX  ||
 |-
-| WITHHOLDING TAX || Official Receipt|| WTHOR-%.5d
+| Withholding Tax Payable ||  || XXX
 |}
+::[[File: WTH-Tax_11c.jpg| 200PX]]
 <br />
-:[[File: WTH-Tax_03.jpg| 500PX]]
+ '''NOTE:'''
+ Withholding tax amount will not add into the purchase invoice as Outstanding Amount.
+:4. Supplier payment knock-off purchase invoice with RM13,600 (outstanding = 0).
+==Payment of Withholding Tax==
+''[ GL | Cash Book Entry..]''
 <br />
-:2. Next, Go to ''Tools | Maintain Payment Method...''
-:3. Edit the '''WITHHOLDING TAX'''.
+:1. Create new PV.
-:4. Set OR and  PV number Set to '''WITHHOLDING TAX'''. Click Save.
+:2. Enter Payee name.
+:3. Select bank account to pay.
+:4. In detail grid, select the GL Account '''(Withholding Tax Payable)'''.
+:5. Enter the withholding tax amount to be paid. Save it.
+:[[File: WTH-Tax 10d.jpg| 500PX]]
 <br />
-:[[File: WTH-Tax_04.jpg| 500PX]]
+:6. You can check the ledger report for '''Withholding Tax Payable outstanding balance'''.
 <br />
-==Withholding Tax==
-===Withholding Tax (AP)===
 ==See also==
-* [[Print SST Listing]]
+* [[Cash Book Entry]]
-* [[SST-Account for Pending Service Tax over 12 months]]
+* [[Print Ledger Report]]
+* [[Account Inquiry]]
+* [[Maintain Withholding Tax]]