How to Apply Withholding Tax on Customer Sales Invoice Payment

[kdevloper]

Hello,
I sent an invoice to a customer. The customer deducted 5% of the invoice amount as withholding tax (WHT) and paid the reminder to us.
The customer will send to us a WHT credit note (certificate) issued by the Government in favour of the payment much later in the year (anytime). The credit note is usable to discount company income tax.

My question how do you apply the withholding tax against a customer sales invoice. I have applied the payment, but invoice status is show overdue because I still need to apply the value in the WHT.

[Pawan]

You may have not created your payment entry correctly. You will need to put the actual amount received in “Paid Amount” in payment entry, allocated amount as total invoice amount and difference in deduction table in the payment entry. The invoice will be paid then. Screen shot attached with example:

[kdevloper]

Thanks. I now understands how its done