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?
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?
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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