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How to enter Tax Deduction while receiving Payment.

ZZamanZZaman Member Posts: 3

Hi
Hope you are doing well.
I have an issue that I have created an invoice to the client and once the payment received it shows the Taxes deducted from the Invoice total amount and when I entered the payment received it still shows the taxes amount remaining to the client. Lets say I have created an invoice for $100 with 17% S.Tax. total is $117 Invoice amount.
The amount I received $108.34 due to tax deduction $3.4 & $5.27 by Client as per Govt. rule.
How can I entered deduction while entering payment?

Thank
Zafar

in Accounting Technical Support

Comments

  • ChelseaKChelseaK Member Posts: 261 ✭✭

    @ZZaman I'm thinking what you'd need to do here is create a journal transaction (head to Accounting > Transactions > More Actions > Add a journal transaction) to reduce the tax liability. For this, I'd recommend speaking to a tax accountant on how exactly to go about this properly. There may be other considerations along with this that I can't speak to and just don't want to lead you astray here!

    edited September 17, 2019
  • ZZamanZZaman Member Posts: 3

    HI @ChelseaK
    Thanks for the details, I added as a expense under Govt. tax and its worked but the invoice is still showing the due payment. How can I link this expense to the same Invoice so the invoice will not show over due.
    Thanks

  • ZZamanZZaman Member Posts: 3

    Hi @ChelseaK
    Its solved, Instead of adding the expense I have split the same payment and added the rest of the amount in taxes.
    Thanks for the help.

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