Hi All
Withholding tax is calculated on gross amount instead of net amount is AR payment journal, and i have set up withholding tax code for net amount too, but despite that during payment journal it is calculating/deducting from gross amount instead of net.
sales order/invoiced - 1000+200 = 1200 (1000 net +(200)20% VAT)
Withholding Tax rate is 20% also
customer payment Journal - by selecting above invoice for settlement/payment is calculating 960 on payment line instead of 1000 , as it is applying 20% withholding tax on 1200 (1200X20%=240) instead of on net amount of 1000( 1000x20%=200) hence payment line is 960 (1200-240) instead of 1000( 1200-200)> so it is calculating on gross amount instead of net.
Please let me know if something is missing from configuration or there is a GAP?
many thanks
ilyas
