Hello everyone, a question from a newbie please! How do I clear an invoice with an outstanding amount, which is not actually outstanding as it's the withholding tax my client kept on my behalf.
I've made a journal entry to move this amount from Acc Rec to another current asset for WIT, but how do I clear the amount still showing as outstanding on the invoice please?
Hi Sophie73,
In this matter, we do recommend reaching out to an accountant for an accurate solution. However, to give you an idea, you will need to apply a payment to the invoice equivalent to the withholding tax amount in the invoice with the outstanding amount. Then record the payment using the linked account you have set up for withholding tax. You can also visit this help pages for more information:
Customer returns, credits and refunds
Bills with Withholding Tax: Process Activity
Regards,
Earl
