Hello,
Actually in Mauritius, for TDS we have to pay our Revenue Tax Authority.
In ERPNext, we have noticed that when we create an invoice with TDS, no automatic invoice is created for the Revenue Tax Authority (Supplier).
We usually create invoice for the supplier where withholding tax is applied and then on invoice save and payment done, an invoice for the supplier Revenue Tax Authority is created automatically.
Please find below example for the accounting entry when withholding tax is used:
Supplier: ABC Coach
Amount: Rs 1000
Withholding Tax: 5%
Invoice 1 - Supplier ABC Coach
Dr Expense account 1000
Dr Liability Account 50
Cr Liability Account 950
Cr TDS Account 50
Invoice 2 - Supplier Revenue Tax Authority (automatically created)
Dr TDS Account 50
Cr Liability Account 50
Kindly advice how to achieve the same in ERPNext.