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HM-Bookkeeper-UK
March 28, 2023
Solved

Withholding Tax Credit

  • March 28, 2023
  • 1 reply
  • 0 views

Hi

I have a customer who has to pay Withholding Tax in their country so requested that our invoices were edited to include this, allowing us to get the money we are owed, without the supplier removing the WHT from the owed amount. 

The supplier has paid the owed price, and I have created a credit note against the remaining invoice amount for the WHT. But I am having a few issues applying this credit note. How do I go about recording this credit note, without it being deposited to the bank account because in essence the money has not actually been deposited. I have created a WHT Expense Account, but it does not allow me to select this as a deposit option.  

I am very new to Quickbooks, so any assistance is greatly appreciated. 

 

    Best answer by HM-Bookkeeper-UK

    Thank you for your reply. 

     

    I decided to go with a journal entry to clear the balance and have processed this against the Withholding Tax Expense account.

     

    1 reply

    A
    Ashleigh1
    March 28, 2023

     Hello HM-Bookkeeper-UK, thanks for posting on the Community page, so you don’t need to select a bank account when you create a credit note. If the remaining balance of the invoice is for the Withholding tax and you will apply a credit note to close off that balance, you would just need to create the credit note transaction and make payment on the customer profile then tick the credit note and the partially paid invoice then save and close to paid off the invoice.

    H
    HM-Bookkeeper-UKAuthorAnswer
    March 29, 2023

    Thank you for your reply. 

     

    I decided to go with a journal entry to clear the balance and have processed this against the Withholding Tax Expense account.

     

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