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| Line 8: | Line 8: | ||
|- | |- | ||
| 460-XXX || WITHHOLDING TAX PAYABLE || Under Current Liabilities | | 460-XXX || WITHHOLDING TAX PAYABLE || Under Current Liabilities | ||
|} | |} | ||
'''NOTE:''' | '''NOTE:''' | ||
GL Account not compulsory to follow. | GL Account code not compulsory to follow. | ||
<br /> | <br /> | ||
| Line 33: | Line 31: | ||
| Tax Rate || Withholding Tax Rate || 15% | | Tax Rate || Withholding Tax Rate || 15% | ||
|- | |- | ||
| Tax Account (DR) || | | 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 | | Tax Account (CR) || Set to '''Withholding Tax Payable''' account || At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities | ||
|} | |} | ||
::[[File: | ::[[File: WTH-Tax_03b.jpg| 400PX]] | ||
'''NOTE:''' | |||
Tax Account (DR) leave blank | |||
<br /> | <br /> | ||
:3. Click on '''Save'''. | :3. Click on '''Save'''. | ||
| Line 57: | Line 57: | ||
:2. Select the Withholding Tax Code in '''WH Tax''' column. | :2. Select the Withholding Tax Code in '''WH Tax''' column. | ||
::[[File: WTH- | ::{| 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. | :3. System will auto post the withholding tax double entry. Press '''CTRL + O''' to check the double entry. | ||
| Line 64: | Line 75: | ||
! GL Description !! Local DR || Local CR | ! GL Description !! Local DR || Local CR | ||
|- | |- | ||
| | | Expenses Account (follow the document detail GL Account) || XXX || | ||
|- | |- | ||
| Withholding Tax Payable || || XXX | | Withholding Tax Payable || || XXX | ||
|} | |} | ||
::[[File: WTH- | ::[[File: WTH-Tax_11c.jpg| 200PX]] | ||
<br /> | <br /> | ||
'''NOTE:''' | '''NOTE:''' | ||
Withholding tax amount will not add into the purchase invoice | 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== | ==Payment of Withholding Tax== | ||
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
Available in:
Menu : [Purchase | Purchase Invoice...] or [Supplier | Supplier Invoice...]
Menu : [Purchase | Cash Purchase...] or [Supplier | Supplier Invoice...]
Menu : [Purchase | Purchase Debit Note...] or [Supplier | Supplier Debit Note...]
Menu : [Purchase | Purchase Returned ...] or [Supplier | Supplier Credit Note...]
- 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.