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GL Payments in Accounts > Payment Entry

Hi all, so I have been implementing ERPNext in a retail business in my country (Tanzania) for the past couple of months. Everything has went smooth and they love the product except for the Accounting department who insist that an Accounting feature is missing. The ability to make GL Payments in payment entry module. i.e the ability to make payments to parties who can not be grouped as either Supplier nor Customer

A simple example is for payments of withholding Taxes deducted from supplier invoices. In Tanzania, companies of a certain size are required by law to deduct 5% of a suppliers invoice and pay it to the government as withholding tax for the supplier. In other accounting systems that they showed me this is handled by Registering the Purchase Invoice, Paying the invoiced amount minus the 5% then doing a journal entry to transfer the 5% to a payable account for Withholding Taxes. Then at the end of the month a single payment is made to the Government equaling the amount in the Withholding Taxes account. The payment they is insist has to be recorded as a Payment Entry and not a Journal Entry and showed me multiple accounting systems that have this feature.

I have edited the Payment Entry doctype in ERPNext to enable this but before I make it available for them to use I just wanted to ask if anybody else has encountered a similar issue and how they resolved it. In hindsight I probably should have asked this before I went about editing the Payment Entry but then…!

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I encountered almost the same scenario. WithHolding Tax feature is available in v11.
But while waiting for v11, the alternative I used was create a new account under Payables in Chart of Accounts, then created new Purchase Taxes and Charges Template .

Accounts > Purchase Taxes and Charges Template > New

And in it I added two rows, One for VAT 18% and other row for WithHolding Tax 5%.


All I have to do is to select this template upon the time of creating a new Purchase invoice, since I have not set it as a default template for purchase.
When it comes to time of paying the WithHolding Tax to TRA, That is done by using Journal Entry, so the payable amount in WHT Account will be cleared.
At-least it gets the job done.

By the way, I’m also Implementing in Tanzania, Dar :grinning:

Regards

Sweet!! We should plan to meet up, Havent met a fellow ERPNext implementer in TZ before!! Wondering how many we are around!

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TZ Accountants can be quite difficult to deal with when it comes to Tax Matters :grinning:

Sure, it would be great. I for one… have quite some few issues hoping we might assist each other.
For example, been trying to find a way to add SDL factor in salary slip haven’t been able to get it done.

Sure, I’ve messaged you my details. For SDL, what I did was created it as a deduction in the Salary Structure but ticked the “Do not include in total” option so it doesn’t affect the employees take home. I’ve attached a screenshot.

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Got it. Will check you ASAP

@aisenyi

Great job to solve this GL payment issue. Can we also record the description (remarks) for this payment entry which also get displayed in General Ledger report?

I am also looking for this kind of feature. Can you plz share your development so that we can also be benefited.

Thanks and best regards

Yes, you can add remarks to the payment entry. Give me a day or two to clean up the code a bit then I’ll post a link to my Github for you to check it out.

Appreciate that

Thanks in advance

Hi @aisenyi

Any update on my request

Hi @ushashmi, sorry for the late reply. It has been a hectic couple of weeks. I’ve uploaded ERPNext version 10.1.66 (develop) with the GL Payment feature to my github. Find the link below and let me know if you face any issues.

Thanks a lot @aisenyi really appreciate

I will try this feature and let u know accordingly

I just want to comment on the excellent share of knowledge in these posts. Good show folks. Shows the power of collaboration and the goodwill of ERPNext community.

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Hi @aisenyi i seen you based in Tanzania, Dar es Salaam?