With Holding Tax Group Creation for a spefic scenario

Question

Hi All
I have unique scenario.....My user want to apply WHT for a different situation, as follows
a-PO Line Value USD 100
b-Sales Tax Value USD 15 (@15% of PO line value)
c-Total value USD 115 (inclusive 15% sales tax)
User wants 1% WHT on USD 100(a) and 3.5% WHT at USD 115(c)
How can I do the same using WHT group or codes...?
Your help would be highly appreciated...
regards
Ahsan

Answer 1

Dear All
i am also having the same problem. The example is
Net invoice Value   = $ 100,000
Input Tax @ 15%   = $  15,000
Total Invoice Value = $ 115,000
Cash Discount = 20% with in 20 days
On payment the system behavior should be
Debit  Vendor invoice Value   = $ 115,000
Debit  Cash Discount @ 20%    = $   20,000   ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit  W/H Tax deduction @ 3.5% = $ 3,325  ( 3.5% of 95,000 the Inv Value - Cash Discount that is $ 115,000 - $20,000)
Credit Bank Account  = $ 91,675 ( Inv value - Cash Dic - W/H tax that is $ 115,000 - 20,000 - 3325 = 91,675)
However at the time of payment system is calculating tax as follows
Debit  Vendor invoice Value   = $ 115,000
Debit  Cash Discount @ 20%    = $   20,000   ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit  W/H Tax deduction @ 3.5% = $ 3,220  ( 3.5% of 92,000 the Inv Value - Cash Discount that is $ 115,000 - $23,000. This $ 23,000 is only calculated for W/H tax calculation that is 20% of $ 115,000 )
Credit Bank Account  = $ 91,780 ( Inv value - Cash Dis - W/H tax that is $ 115,000 - 20,000 - 3220 = 91,780)
this is not the common practice when using the net base value in the system.
Can any one help me in this regard. I really have been stucked in this problem for many days
Regards
Bilal Athar