Posting invoices and bills

[Derek Atkins]

Hi,

denisbkk <denis at dcore.asia> writes:

> Thanks. How could I miss that! Now I still have one question left as I have a
> bit of a special setup involving a withholding tax on side of my customers:
>
> So here is what I am trying to do when invoicing a customer and then
> receiving a payment later:
>
> Info: I use a 7% VAT + when I invoice, the customer will have to withhold
> additional 3% tax from the payment he makes to me.
>
> So when I invoice the total amount (sales amount+VAT), I post the sale
> amount to Income:Sales account, and use a tax table with a 7% VAT posted to
> Liability:Output VAT account. Then I post the invoice to Accounts
> receivable.
>
> Then when I receive payment, I use the "process payment" facility for
> customers, first I post the sale amount+VAT from A/R to bank account (where
> I received the money). Then after that I post a "payment" of the 3%
> withholding tax amount from A/R to the "Assets:TDS (tax withheld at source)"
> account. 
>
> This is how it seems logic for me but is there any better way to do it? Any
> more efficient way or am I making even an error somewhere?

You're better off just processing the full payment and then modifying
the transacton to Split it between Bank and TDS.  Just don't change the
total amount to the A/R account.

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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