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.