Unapplied Payment with Witholding Tax

blueberrycheesecake

Hi,

I have a question. my customer have an invoice amount of $10.000. the invoice have a withholding tax type Payment in the amount of 10%. my customer only pay $9.000. we agree that his/her invoice is done. the remaining amount of $1.000 is being paid by the withholding tax.

problem happened with a scenario like this....... when my customer paid the invoice, he/she didn't tell me that this is a payment for which invoice number. so I make a Cash Receipt Journal without filling the "Applies to Doc No" field. I put $9.000 amount.

after I get a phone from my customer telling me the invoice number for the payment, I apply the payment via Customer Ledger Entry.

system made bank account ledger entry like this :
Bank 9.000
Account Receivable 9.000
WHT 900
Bank 900

the invoice is not fully paid. I have two Bank Ledger Entry (9.000 and -900)

in the end of the month, I print my bank book, it only have one line, which is $9.000. this the amount of the transferred fund from my customer. I get so many trouble doing bank account reconciliation.

I also can't put $10.000 on my Cash Receipt Journal since I don't know this payment is for which invoice ](*,) ](*,) ](*,) ](*,) ](*,)

any suggestion anyone?

jordi79

You can unapply the payment and NAV should reverse everything.

For WHT, I am bit rusty... but this is what I can recall...

For WHT in your Sales invoices, it should indicate what is the amount breakdown. E.g. InvoiceTotal is 10,000. WHT is 1,000. And the amount the customer should pay is 9,000. The customer will just pay 9000, and the tricky part here is that when entering amount collected in CashReceiptJournal, you should enter 10,000 and not 9,000. But once you post, NAV will only record +9000 in Bank, and -9000 in receivables. and the remaining 1000 in WHT. And NAV will close the invoice.

blueberrycheesecake

I can unapply the payment that I already posted. but if there are future payment with a scenario like this again (my customer don't give me the information about the invoice number when they transferred the fund), I can't wait until my customer phoned me so I can enter the exact amount of the invoice. it could be months after the transferred payment.

even if I enter 10000 as the amount on my Cash Receipt Journal, the journal will look like this :
Bank 10000
Account Receivable -10000
WHT 1000
Bank -1000

invoice was closed. but system made 2 bank ledger entries. whilst my bank book only have one entry, which is 9000.

is there any setup on NAV? so that if I enter 9.000 on Cash Receipt Journal, then applied the payment via Customer Ledger Entry, system will close the invoice, and just made 3 journal like this :

Bank 9000
Account Receivable -10000
WHT 1000

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jordi79

hi,

1st of all the wht i am familiar with is the Thai WHT. But I assume they are very much similar. You mentioned NAV is doing below:

Bank 10000
Account Receivable -10000
WHT 1000
Bank -1000

But you would want NAV To do below:

Bank 9000
Account Receivable -10000
WHT 1000

But the "net" effect from both the transactions above are the same. The net effect to Bank is still 9000. Yes, I agree that for Bank recon it is difficult to reconcile with 2 entries, but, this is how NAV works. I remembered working with an accountant that was trying to reconcile ITemLedgEntry, and that was even worst. With all the expected costs and reversals etc.