Khatavahi BI Solutions LLP - Adjusting Withhold Amount

Adjusting Withhold Amount

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Adjusting Withhold Amount

Let's assume that outstanding against a Sales Invoice is 20,000. When client makes payment, they will only pay 19,600. Rest 400 needs to be booked under tax withhold account. You can manage this scenario as described below.

Step 1: Setup Withhold Account 

Create a Withhold Account in your Chart of Accounts.

Step 2: Payment Entry 

To create Payment Entry, go to unpaid Sales Invoice and create click on Make Payment button.

Step 2.1: Enter Payment Amount 

Enter Payment Amount as 19,600.

Paid Amount in Payment Entry

Step 2.2: Allocate Against Sales Invoice 

Against Sales Invoice, allocate 20,000 (explained in GIF below).

Step 2.3: Add Deduction/Loss Account 

You can notice that there is a difference of 400 in the Payment Amount and the Amount Allocated against Sales Invoice. You can book this difference account under Withhold Account.

Tax Withheld Adjustment in Payment Entry

Following same steps, you can also manage difference availed due to Currency Exchange Gain/Loss.


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Kajal Tarpara

ERPNext Consultant

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