Payment: Withholding Tax

How to adjust payment with Withholding Tax?
I review all the previous post related to that issue, and find that this is not possible in current version.

My scenario is:
I create Invoice of Rs100 for ABC supplier
When crating payment I will pay Rs90 to suppler, and hold Rs10 (10% of invoice) and pay to government latter.

Also, that invoice status should be paid, and not show in outstanding.

What should be the workaround in current version (v10) of ERPNext to achieve this task?



Hello Ashfaq,

Follow below steps.

  1. Enter full amount ( Rs.100 ) under Purchase Invoice Item Table

  2. Edit Tax Table Row and Select Consider Tax or Charges

  3. Select Add or Deduct as Deduct and Type as applicable

  4. Enter required Tax Account under Account Head field

  5. Fill other mandatory fields save and submit the document

On submit actual Payable amount will be booked. After making full payment Invoice status will be update as Paid. Hope this helps.




I was not aware about the Deduct option on Taxes. Thank you very much prakash_hodage for your help.