Problem: I need to reduce withholding tax (12%) from payable invoice and accrue it to Current Tax Payable
Solution:
1) Enter Invoice Received with Out of Scope Taxation type
In Expenses Tab put the Amount Payable to the Vendor (do not include Withholding Tax). in the below example the lines are splitter because the deferral will be applied to the part of the invoice. Select the corresponding GL accounts in GL accounts column:
Invoice received will create following GL entries:
2) Go to Taxes>Master Data>VAT Rates:
Create the new rate - 12 %
3) Go to Taxes>Taxes Documents>Output VAT Transactions:
Create a new one as Transaction Type - Invoice, Adjustment Type - Increase. In Basis select the previously entered Invoice Received:
