Withholding tax on payment postings

Step 1. Purchase invoice registration

If you register the purchase invoice, LN creates these postings:

Amount	Debit/ Credit	Ledger account	Defined in session
Costs	Debit	Account of the invoice line	Depends on the setup.
Interim VAT on payments	Debit	Purchase Tax on Payments (Interim) of the VAT tax code	Posting Data for Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000)
Accounts payable	Credit	ACP control account	Accounts by Financial BP Group (tfacp0110m100)

 

Step 2. Purchase invoice payment

If you finalize the payment of the purchase invoice, LN creates these postings:

Amount	Debit/ Credit	Ledger account	Defined in session
Accounts payable	Debit	Control Account	Accounts by Financial BP Group (tfacp0110m100)
Interim VAT on payments	Credit	Purchase Tax on Payments (Interim) of the VAT tax code	Posting Data for Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000)
VAT receivable	Debit	Purchase Tax account of the VAT tax code
Social contribution payable	Credit	Purchase Tax account of the Withholding Social Contribution tax code
Social contribution expense	Debit	Social Contribution (Company Expense) account of the Social Contribution (Company Expense) tax code
Social contribution payable	Credit	Purchase Tax account of the Social Contribution (Company Expense) tax code
Income tax payable	Credit	Purchase Tax account of the Withholding Income Tax tax code
Bank	Credit	Account selected for the transaction type used for the bank in Cash Management.