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Hello,
I have created a PO with Amount 7500 and selected WHT to be deducted as 10%. Further I had created a Prepaid invoice of amount 3000, then I settled the prepaid invoice and WHT was deducted as 300. Now I had created a Invoice against PO and applied the prepaid invoice of 3000. The remaining invoice is showing as 4500. Now I have settled the invoice of 4500 but WHT is being calculated on 7500 which is 750 instead tax base should be 4500 and WHT should be 450 accordingly.
Is there any functionality where the tax base for calculating the WHT based on the remaining balance of the invoice i.e 4500.
Hi Muhammad Awais Tahir,
Please set the calculation parameter in Withholding Tax Codes setup as "Percentage of net amount" and see if it solves the issue.
Regards,Sourav
Hi Sourav,
Thank you for your reply.
No, your provided workaround is not fulfilling the requirement. As by changing calculation parameter to "Percentage of Net Amount" WHT is calculated on excluding of sales tax amount. It is not incorporating the requirement of WHT should be applied on partial payment (tax withheld at prepayment of a PO and remaining WHT should be on the remaining payment of PO i.e PO invoice amount - Prepayment amount).
Regards,
Awais
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