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Can we make withholding tax as exclusive in prices.

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Posted on by Pavan Kumar Reddy

Here, the client is paying the withholding tax instead of customer that's why he is asking to make it as exclusive in Prices. EX: PO value is 1000 & withholding tax is 10% means he pays 1000 to vendor & 100 to govt. So totally he is paying 1100. So he is asking to make it as exclusive in price. Is these option available in D365?

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saurabh bharti 15,039 Moderator on at

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Can you please explain what is expected accounting entry?

Normally that's what happens when you post Supplier invoice

Supplier is credit 1000

Withholding tax payable 1000

Expenses Debit 1100

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Pavan Kumar Reddy 15 on at

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But in D365, it will take as

Expense a/c - 1000 dr

Supplier a/c - 900 cr

Withholding tax - 100 cr. Because it will take as a inclusive of tax, not exclusive.

I want to post your accounting entry only. But how is it possible in D365 because exclusive of WHT option is not available in the system right? Any other option available or we can do it in other way?

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