Hi,
I am facing a case where I am not sure covered with std feature of ERPNext or not.
A sales invoice process:
Dr: client
CR:income
CR:VAT account
my case I have to debit client and client withholding tax (5%).
Please anyone faced this case and how you solved?
thx in advance.
Rgds
Nofal
From your explain, it seems you wish to:
Debit: Customer
Credit: Withholding Tax
Is this the case? This will further increase the value in the customer account.
Hi @nmami - How is this different than std sales invoice issue where item has tax and price can either include or exclude tax? When you setup the VAT tax in ERNext you assign it the VAT account (from chart of accounts). When you post invoice, ERPNext automatically will increase sales, accounts receivable (specific to that client) and VAT collected (which is usually a payable - to Govt).
Perhaps have not understood your question - please clarify further. Hope this helps.
Solution
https://docs.erpnext.com/docs/user/manual/en/accounts/articles/adjust-withhold-amount-payment-entry
That solution is for a writeoff or sales discount - both booked as a loss (an expense or reduced topline) - as customer does not owe the balance. VAT tax witholding should be booked as a payable or expense - depending if the country allows to expense net VAT paid for period or carries forward…
My case is a seller (A), he will not receive total amount but 5% of that amount will be replaced by a certificate and rest as cash. this 5% called client withhold the client will give it to gov onbehalf of the seller A.
seller A do not want Dr full amount to debtor account, but 95 % Dr debtor account and 5% Dr Client withhold.
above link show how to reach this figure but at paiment step not at sales invoice step.
thx for your support.
Nofal