Dear Experts,
I need the following Withholding Tax (WHT) configuration in SAP Business One, as it is required by the Law here in Ethiopian implemented From March 1,2014
I have a problem on Withholding Tax calculation at the time Payment Process and Journal Entry.
A Company collect Withholding tax behalf of Government from all supplier at the time of payment for purchase of goods or services.
When Purchase of Goods;
Total amount > 10000 .............. Calculate WHT 2%
Total Amount <= 10000............ Free
How to Configure withholding Tax? Please help me
Example
- My Company Purchase 200 unit of HD from ABC Company at 180 Birr on May 15, 2014. My company is VAT Exempted and collects withholding tax 2% from Base Amount.
Entry Recording
1. At the Time of Good Received
Inventor ……………….. 36,000.00 (Dr)
Clearing A\c ………………….36,000.00 (Cr)
2. At the Time of A\P Invoice
Clearing A\c ……………36,000.00 (Dr)
Vendor A\c …………………36.000.00 (Cr)
3. At the Time of Payment
Vendor A\c ……………36,000.00 (Dr)
Withholding Tax…………720.00 (Cr)
Bank A\c …………….35,280.00 (Cr)