Vendor account is set on Withholding tax authorities. But when withholding tax payment is generated, no transactions is posted on vendor account.
Withholding tax payment should be working as tax payment. Transactions is expected to be posted on vendor account.
Comments
I noticed, that additional feature is already available, which enables posting withholding tax settlement on vendor account. But my concern is, that the liability is posted in invoice payment currency. On withholding tax code you can select a currency in which withholding tax should be paid. So I am not sure, why the transactions are not settled using currency from withholding tax codes.
Category: Tax
The same problem in South Asia legal entity, I enabled the Global withholding tax feature and used the setup but no tax payment transaction is posting to authority vendor.
Category: Tax
Agreed! transactions must be posted in the vendor account for withholding tax authority.
Category: Tax
Our two customers have to use Withholding tax and the manual settlement is really not what they are after. This means much more manual unnecessary work for the accountants, especially if there is a similar logic to VAT settlement with tax authorities, which works automatically. Why the discrepancy? The business impact is very big as the withholding tax is used in every days operations, so the process should be as simplified and automated as possible to reduce human errors.
Category: Tax
Administrator on 3/22/2024 5:19:35 PM
Thank you for your feedback. This is addressed by enabling the Global withholding tax functionality.