I gave a sales invoice for to a customer for X amount, say for example Rs 10,000
He paid me Rs 8,500 only by deducting tax.
Now, I can not mark the invoice as paid, as we have to enter the same amount on the invoice.
But I received less amount.
How to solve this?
Is this a tax deducted at source and deposited somewhere in your name?
How you proceed depends on the accounting you need to do, but generally you can either mark it as a deductable tax on the invoice or as a deduction/expense on the payment entry.
I think It is tax deducted at Source.
I am yet to get the details on the tax info.
But received the payment with some less amount and told that it was for tax.
Okay, thanks. At this point, this is more of an accounting question than an ERPNext question. No matter how this should be booked, ERPNext can handle it, but you shouldn’t try to fix the software issue until you understand what the accounting is supposed to be.
If you’re in South Asia, this is probably TDS. That money is still technically yours, in an account somewhere under your name. Likewise, you shouldn’t list it as an expense but rather as an asset.
The below discussion thread seems the same issue I have.
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 dont see the same form on my payment entry screen, as shown on the screen shot there.
(allocate payment amount) is missing on my payment screen.
ERPNext: v13.x.x-develop () (develop) version.
The withholding/deductions table is definitely there. As mentioned in that thread, you must have an amount entered for it to appear.