Withholding Tax on Payable Credit Notes

Withholding Tax is calculated on a Payable Credit Notes in the same way as a Payable Invoice.

Withholding tax for an entire Payable Credit Note

To add Withholding Tax information to a payable credit note:

In the Withholding Tax field, click .
Select the correct Withholding Tax Code.
[Optional] In the Withholding Rate field enter a value to override the default tax rate set on the selected Withholding Tax Code or leave the field blank to accept the default Withholding Tax rate.
Click Save.

Note: When the document is posted the Is Withholding Tax field is automatically populated on the transaction relating to the document

Excluding a Payable Credit Note Line Item from Withholding Tax

When excluding a line from Withholding Tax on a payable credit note it is calculated in the same way as on a payable invoice. To exclude a payable credit note Product or Expense line item from Withholding Tax.

Select the Payable Credit Note line item.
Select the Exclude from Withholding checkbox to exclude the payable invoice line item from withholding tax
Click Save.

Creating a Credit Note from a Payable Invoice

Once a payable invoice has been posted, you can use it to begin to create a credit note.

Converting a Payable Invoice That Contains Withholding Tax Information to a Payable Credit Note

A payable credit note converted from a payable invoice will inherit the Withholding Tax information.

For more information, see Creating a Credit Note from a Payable Invoice.

Reporting on Withheld Tax

Accounting Reporting Expansion Pack users can use the Withholding Payable Credit Note report in the Withholding Reports folder. This report displays payable credit notes where tax is withheld. For more information about reports, see Reports Home.

Notes: To access the reports your administrator must either: