Difference between revisions of "Withholding Tax"

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(Withholding Tax Purchase Entry)
 
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==Initial Setup==
 
==Initial Setup==
===Create Withholding Tax Account===
+
===Withholding Tax Account===
''[GL | Maintain Account...]''
+
''Menu : GL | Maintain Account...''
 
<br />
 
<br />
:Create the following GL Account under '''Current Liability'''.
 
 
::{| class="wikitable"
 
::{| 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
 +
|-
 +
| 990-XXX || WITHHOLDING TAX EXPENSE || Under Expenses
 
|}
 
|}
 +
 +
'''NOTE:'''
 +
GL Account not compulsory to follow.
 +
 
<br />
 
<br />
:[[File: WTH-Tax_01.jpg| 500PX]]
+
 
 +
===Maintain Withholding Tax===
 +
''Menu : Tools | Maintain Withholding Tax...''
 
<br />
 
<br />
  
===Withholding Document Number Set===
+
:1. Click '''New'''.
''[Tools | Maintain Document Number...]''
+
:2. Input the following data:
<br />
 
:1. Create the following document number set for '''Withholding Tax'''.  
 
:[[File: WTH-Tax_02.jpg| 500PX]]
 
 
::{| class="wikitable"
 
::{| class="wikitable"
 
|-
 
|-
! Descripion !! Document Type !! Format
+
! Field Name !! Explanation || Remark
 +
|-
 +
| Code || Set a code || WTH-TAX15
 
|-
 
|-
| WITHHOLDING TAX || Payment Voucher|| WTHPV-%.5d
+
| Description || Describe the meaning/usage of this code || Withholding Tax 15%
 
|-
 
|-
| WITHHOLDING TAX || Official Receipt|| WTHOR-%.5d
+
| Tax Rate || Withholding Tax Rate  || 15%
 +
|-
 +
| Tax Account (DR) || Set to '''Withholding Tax Exepense''' account  || At GL\Maintain Account, create the Withholding Tax Expense account under Expenses
 +
|-
 +
| Tax Account (CR) || Set to '''Withholding Tax Payable''' account  || At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities
 
|}
 
|}
 +
::[[File: WHT-001.jpg| 500PX]]
 
<br />
 
<br />
:[[File: WTH-Tax_03.jpg| 500PX]]
+
:3. Click on '''Save'''.
 
<br />
 
<br />
:2. Next, Go to ''Tools | Maintain Payment Method...''
+
 
:3. Edit the '''WITHHOLDING TAX'''.
+
 
:4. Set OR and  PV number Set to '''WITHHOLDING TAX'''. Click Save.
+
==Withholding Tax Purchase Entry==
<br />
+
Available in: <br />
:[[File: WTH-Tax_04.jpg| 500PX]]
+
''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 />
 
<br />
  
==Withholding Tax==
+
:1. In '''Purchase Invoice''', insert the following columns:
===Withholding Tax (AP)===
+
::* WH Local Tax Amt
''[Supplier | Supplier Payment...]''
+
::* WH Tax
 +
::* WH Tax Rate
 +
::[[File: WTH-Tax_10a.jpg| 300PX]]<br />
 +
 
 +
:2. Select the Withholding Tax Code in '''WH Tax''' column.
 +
::[[File: WTH-Tax_10b.jpg| 500PX]]<br />
 +
 
 +
:3. System will auto post the withholding tax double entry. Press '''CTRL + O''' to check the double entry.  
 +
::{| class="wikitable"
 +
|-
 +
! GL Description !! Local DR || Local CR
 +
|-
 +
| Withholding Tax Expense || XXX  ||
 +
|-
 +
| Withholding Tax Payable ||  || XXX
 +
|}
 +
::[[File: WTH-Tax_10c.jpg| 500PX]]
 
<br />
 
<br />
  
:1. Create new '''Supplier Payment'''.
+
'''NOTE:'''
:2. Select the '''Supplier Code'''.
+
Withholding tax amount will not add into the purchase invoice amount.
:3. Select the Payment by: '''WITHHOLDING TAX'''.
 
:4. Enter the Paid Amount: '''110,000.00 (Withholding tax amount 10% of supplier invoice value)'''.
 
:5. Knock-off the supplier invoice.
 
<br />
 
:[[File: WTH-Tax_05.jpg| 500PX]]
 
<br />
 
  
===Withholding Tax (AR)===
+
==Payment of Withholding Tax==
''[Customer | Customer Payment...]''
+
''[ GL | Cash Book Entry..]''
 
<br />
 
<br />
  
:1. Create new '''Customer Payment'''.
+
:1. Create new PV.  
:2. Select the '''Customer Code'''.
+
:2. Enter Payee name.
:3. Select the Received In: '''WITHHOLDING TAX'''.
+
:3. Select bank account to pay.
:4. Enter the Paid Amount: '''2,560.00 (Withholding tax amount 10% of customer invoice value)'''.
+
:4. In detail grid, select the GL Account '''(Withholding Tax Payable)'''.
:5. Knock-off the customer invoice.
+
:5. Enter the withholding tax amount to be paid. Save it.
 +
:[[File: WTH-Tax 10d.jpg| 500PX]]
 
<br />
 
<br />
:[[File: WTH-Tax_06.jpg| 500PX]]
+
:6. You can check the ledger report for '''Withholding Tax Payable outstanding balance'''.
 
<br />
 
<br />
  
 
==See also==
 
==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]]

Latest revision as of 06:58, 2 July 2020

Initial Setup

Withholding Tax Account

Menu : GL | Maintain Account...

GL Account Description Remark
460-XXX WITHHOLDING TAX PAYABLE Under Current Liabilities
990-XXX WITHHOLDING TAX EXPENSE Under Expenses
NOTE: 
GL Account 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) Set to Withholding Tax Exepense account At GL\Maintain Account, create the Withholding Tax Expense account under Expenses
Tax Account (CR) Set to Withholding Tax Payable account At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities
500PX


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
300PX
2. Select the Withholding Tax Code in WH Tax column.
500PX
3. System will auto post the withholding tax double entry. Press CTRL + O to check the double entry.
GL Description Local DR Local CR
Withholding Tax Expense XXX
Withholding Tax Payable XXX
500PX


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

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.
500PX


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


See also