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This text refers to program version 8.0  

Withholding Taxes in the Sales Ledger

The Withholding Tax feature is available in the following countries (determined by the VAT Law specified in the Company Info setting): Angola, Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Italy, Kenya, Mexico, Nicaragua, Panama, Philippines, Portugal, Paraguay, Singapore, South Africa and Uruguay. The settings and options described on this page will not be visible elsewhere.

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In some countries, it is necessary to calculate and apply a Withholding Tax when issuing some or all Sales Invoices. The Withholding Tax amount will be subtracted from the Invoice totals and paid directly to the tax authority or other government institution.

When Withholding Tax is calculated and included in Invoices, it will be posted to a temporary Account. When Customers pay the Invoices, the Withholding Tax will be moved from the temporary Account to a final Account.

Follow these steps to configure the Withholding Tax feature in Standard ERP:

1. The first step is to activate the calculation of Withholding Taxes in Invoices. To do this, select the Calculate Withholding Taxes option in the Item Settings setting in the Sales Ledger:
   

   

2. Next, specify the Items that are to be subject to Withholding Tax. Open each Item record and tick the Calculate Withholding Taxes box on the 'A/C' card:
   

   

   When you configure the formula for calculating Withholding Tax (step 4 below), you will do so at Item Group level. Therefore, ensure that every Item in which you have ticked the Calculate Withholding Taxes box belongs to an Item Group.
   

3. In the Withholding Taxes setting in the Purchase Ledger, configure the various Withholding Tax regimes that you will use. For the purposes of sales Withholding Tax, you only need specify an A/C in each tax regime (Taxes T8 and T9 in the example illustration below):
   

   

4. In the Item Group Withholdings setting in the Sales Ledger, define the formulae that will be used to calculate Withholding Tax amounts.

Please click here for more details about step 4 and here for an illustrated example.

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The Receipt register in Standard ERP:

• Introduction
  

• Entering a Receipt
  

• Receipts in Currency
  

• Checking Receipts, Marking as OK and Posting to the Nominal Ledger
  

• Nominal Ledger Transactions from Receipts
  

• Prepayments and On Account Receipts
  

• Correcting Mistakes in Receipts
  

• Withholding Taxes in the Sales Ledger, including:
  
  • Item Group Withholdings
    

  • Workflow and Example
  
  
• Operations menu

Go back to:

• Home page for Sales Ledger manual
  

• Home page for Standard ERP manual

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