Difference between revisions of "Withholding Tax"

From eStream Software
Jump to: navigation, search
(Withholding Tax (AP))
(Withholding Tax Purchase Entry)
 
(33 intermediate revisions by the same user not shown)
Line 1: Line 1:
 
==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
 
|}
 
|}
:[[File: WTH-Tax_01.jpg| 500PX]]
+
 
 +
'''NOTE:'''
 +
GL Account not compulsory to follow.  
 +
 
 
<br />
 
<br />
  
===Withholding Document Number Set===
+
===Maintain Withholding Tax===
''[Tools | Maintain Document Number...]''
+
''Menu : Tools | Maintain Withholding Tax...''
 
<br />
 
<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"
 
::{| class="wikitable"
 
|-
 
|-
! Descripion !! Document Type !! Format
+
! Field Name !! Explanation || Remark
 
|-
 
|-
| WITHHOLDING TAX || Payment Voucher|| WTHPV-%.5d
+
| Code || Set a code || WTH-TAX15
 
|-
 
|-
| WITHHOLDING TAX || Official Receipt|| WTHOR-%.5d
+
| 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
 
|}
 
|}
:[[File: WTH-Tax_03.jpg| 500PX]]
+
::[[File: WHT-001.jpg| 500PX]]
 
<br />
 
<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 />
 
<br />
  
==Withholding Tax Entries==
 
===Withholding Tax (AP)===
 
''[Supplier | Supplier Payment...]''
 
<br />
 
  
:1. Create new '''Supplier Payment'''.
+
==Withholding Tax Purchase Entry==
:2. Select the '''Supplier Code'''.
+
Available in: <br />
:3. Select the Payment by: '''WITHHOLDING TAX'''.
+
''Menu : [Purchase | Purchase Invoice...]'' or [Supplier | Supplier Invoice...]<br />
:4. Enter the Paid Amount: '''110,000.00 (eg. the withholding tax amount 10% of supplier invoice value)'''.
+
''Menu : [Purchase | Cash Purchase...]'' or [Supplier | Supplier Invoice...]<br />
:5. Knock-off the supplier invoice.
+
''Menu : [Purchase | Purchase Debit Note...]'' or [Supplier | Supplier Debit Note...]<br />
:[[File: WTH-Tax_05.jpg| 500PX]]
+
''Menu : [Purchase | Purchase Returned ...]'' or [Supplier | Supplier Credit Note...]<br />
 
<br />
 
<br />
  
===Withholding Tax (AR)===
+
:1. In '''Purchase Invoice''', insert the following columns:
''[Customer | Customer Payment...]''
+
::* WH Local Tax Amt
<br />
+
::* WH Tax
 +
::* WH Tax Rate
 +
::[[File: WTH-Tax_10a.jpg| 300PX]]<br />
  
:1. Create new '''Customer Payment'''.
+
:2. Select the Withholding Tax Code in '''WH Tax''' column.
:2. Select the '''Customer Code'''.
+
::[[File: WTH-Tax_10b.jpg| 500PX]]<br />
:3. Select the Received In: '''WITHHOLDING TAX'''.
 
:4. Enter the Paid Amount: '''2,560.00 (Withholding tax amount 10% of customer invoice value)'''.
 
:5. Knock-off the customer invoice.
 
:[[File: WTH-Tax_06.jpg| 500PX]]
 
<br />
 
  
==Withholding Balance Report==
+
:3. System will auto post the withholding tax double entry. Press '''CTRL + O''' to check the double entry.
''[ GL | Print Ledger Report...]''
+
::{| class="wikitable"
<br />
+
|-
''[ Inquiry | Account Inquiry...]''
+
! GL Description !! Local DR || Local CR
 +
|-
 +
| Withholding Tax Expense || XXX  ||
 +
|-
 +
| Withholding Tax Payable ||  || XXX
 +
|}
 +
::[[File: WTH-Tax_10c.jpg| 500PX]]
 
<br />
 
<br />
  
:1. Select '''Date Range'''.
+
'''NOTE:'''
:2. Select Account: '''WTH-TAX'''
+
Withholding tax amount will not add into the purchase invoice amount.
:3. Click '''Apply'''.
 
:[[File: WTH-Tax_07.jpg| 500PX]]
 
<br />
 
  
 
==Payment of Withholding Tax==
 
==Payment of Withholding Tax==
Line 77: Line 81:
 
:1. Create new PV.  
 
:1. Create new PV.  
 
:2. Enter Payee name.
 
: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 />
 
<br />
:6. You can check the ledger report for Withholding Tax balance.
+
:6. You can check the ledger report for '''Withholding Tax Payable outstanding balance'''.
:[[File: WTH-Tax_09.jpg| 500PX]]
 
 
<br />
 
<br />
  
 
==See also==
 
==See also==
 
* [[Cash Book Entry]]
 
* [[Cash Book Entry]]
* [[Customer Payment]]
 
* [[Supplier Payment]]
 
 
* [[Print Ledger Report]]
 
* [[Print Ledger Report]]
 
* [[Account Inquiry]]
 
* [[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