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
 |}
-:[[File: WTH-Tax_01.jpg| 500PX]]
+ '''NOTE:'''
+ GL Account code not compulsory to follow.
 <br />
-===Withholding Document Number Set===
+===Maintain Withholding Tax===
-''[Tools | Maintain Document Number...]''
+''Menu : Tools | Maintain Withholding Tax...''
 <br />
-:1. Create the following document number set for '''Withholding Tax'''.
-:[[File: WTH-Tax_02.jpg| 500PX]]
+:1. Click '''New'''.
+:2. Input the following data:
 ::{| class="wikitable"
 |-
-! Descripion !! Document Type !! Format
+! 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%
 |-
-| WITHHOLDING TAX || Payment Voucher|| WTHPV-%.5d
+| Tax Account (DR) || Expenses account  || '''<<Follow document accounts>>''' if leave blank
 |-
-| WITHHOLDING TAX || Official Receipt|| WTHOR-%.5d
+| 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_03.jpg| 500PX]]
+::[[File: WTH-Tax_03b.jpg| 400PX]]
+ '''NOTE:'''
+ Tax Account (DR) leave blank
 <br />
-:2. Next, Go to ''Tools | Maintain Payment Method...''
+:3. Click on '''Save'''.
-:3. Edit the '''WITHHOLDING TAX'''.
-:4. Set OR and  PV number Set to '''WITHHOLDING TAX'''. Click Save.
-:[[File: WTH-Tax_04.jpg| 500PX]]
 <br />
-==Withholding Tax Entries==
+==Withholding Tax Purchase Entry==
-===Withholding Tax (AP)===
+Available in: <br />
-''[Supplier | Supplier Payment...]''
+''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 new '''Supplier Payment'''.
+:1. In '''Purchase Invoice''', insert the following columns:
-:2. Select the '''Supplier Code'''.
+::* WH Local Tax Amt
-:3. Select the Payment by: '''WITHHOLDING TAX'''.
+::* WH Tax
-:4. Enter the Paid Amount: '''110,000.00 (Withholding tax amount 10% of supplier invoice value)'''.
+::* WH Tax Rate
-:5. Knock-off the supplier invoice.
+::[[File: WTH-Tax_10a.jpg| 300PX]]<br />
-:[[File: WTH-Tax_05.jpg| 500PX]]
-<br />
-===Withholding Tax (AR)===
+:2. Select the Withholding Tax Code in '''WH Tax''' column.
-''[Customer | Customer Payment...]''
+::{| class="wikitable"
-<br />
+|+ For example,
+|-
+!  !! Amount
+|-
+| Original Supplier Invoice|| 15,640
+|-
+| Withholding Tax || (2,040)
+|-
+| '''Supplier Account Payable''' || '''13,600'''
+|}
+::[[File: WTH-Tax_11b.jpg| 200PX]]<br />
-:1. Create new '''Customer Payment'''.
+:3. System will auto post the withholding tax double entry. Press '''CTRL + O''' to check the double entry.
-:2. Select the '''Customer Code'''.
+::{| class="wikitable"
-:3. Select the Received In: '''WITHHOLDING TAX'''.
+|-
-:4. Enter the Paid Amount: '''2,560.00 (Withholding tax amount 10% of customer invoice value)'''.
+! GL Description !! Local DR || Local CR
-:5. Knock-off the customer invoice.
+|-
-:[[File: WTH-Tax_06.jpg| 500PX]]
+| Expenses Account (follow the document detail GL Account) || XXX  ||
+|-
+| Withholding Tax Payable ||  || XXX
+|}
+::[[File: WTH-Tax_11c.jpg| 200PX]]
 <br />
-==Withholding Balance Report==
+ '''NOTE:'''
-''[ GL | Print Ledger Report...]''
+ Withholding tax amount will not add into the purchase invoice as Outstanding Amount.
-<br />
-''[ Inquiry | Account Inquiry...]''
-<br />
-:1. Select '''Date Range'''.
+:4. Supplier payment knock-off purchase invoice with RM13,600 (outstanding = 0).
-:2. Select Account: '''WTH-TAX'''
-:3. Click '''Apply'''.
-:[[File: WTH-Tax_07.jpg| 500PX]]
-<br />
 ==Payment of Withholding Tax==
@@ Line 77: / Line 93: @@
 :1. Create new PV.
 :2. Enter Payee name.
-:3. Select Payment By: '''Bank Account'''
+:3. Select bank account to pay.
-:4. At detail grid, select GL Code: '''WTH-TAX'''
+:4. In detail grid, select the GL Account '''(Withholding Tax Payable)'''.
-:5. Enter the withholding tax amount to paid.
+:5. Enter the withholding tax amount to be paid. Save it.
-:[[File: WTH-Tax_08.jpg| 500PX]]
+:[[File: WTH-Tax 10d.jpg| 500PX]]
+<br />
+:6. You can check the ledger report for '''Withholding Tax Payable outstanding balance'''.
 <br />
 ==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]]