Bills with Withholding Tax: Generated Transactions
As you process a bill with a withholding tax applied, you create an AP bill and a payment. To update the vendor's balance, the system generates the GL transactions described in the following sections.
Transaction Generated for an AP Bill
When you create and release an AP bill, the system generates the following general ledger transaction:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Expense account | The Expense account specified for the document line on the Bills and Adjustments (AP301000) form | Amount | 0.00 |
| Accounts Payable account | The Accounts Payable account of the vendor specified on the Vendors (AP303000) form | 0.00 | Amount |
You can view the reference number of the GL batch on the Financial tab of the Bills and Adjustments form.
Transaction Generated for a Payment
When you create and release a payment, the system generates the following general ledger transaction:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Payable account | The Accounts Payable account of the vendor specified on the Vendors (AP303000) form | Amount | 0.00 |
| Cash account | The cash account specified for the document on the Checks and Payments (AP302000) form | 0.00 | Amount—Tax Amount |
| Tax Payable account | The Tax Payable account specified for the withholding tax on the Taxes (TX205000) form | 0.00 | Tax amount |
You can view the reference number of the GL batch on the Financial tab of the Checks and Payments form.