Withholding tax paid periodically - postings

Step 1. Purchase invoice registration

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

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

 

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Step 2. Purchase invoice payment

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

Amount	Debit/ Credit	Ledger account	Defined in session
Accounts payable	Debit	Control Account	Accounts by Financial BP Group (tfacp0110m100)
Bank	Credit	Account selected for the transaction type used for the bank in Cash Management.

 

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Step 3. Periodical withheld income tax and social contributions declaration

If you submit the periodical withheld income tax and social contributions declaration, LN creates the following postings:

Amount	Debit/ Credit	Ledger account	Defined in session
Withheld income tax payable	Debit	Purchase Tax account of the Withholding Income Tax tax code	Posting Data for Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000)
Social contribution payable	Debit	Purchase Tax account of the Withholding Social Contribution tax code
Social contribution payable	Debit	Purchase Tax account of the Social Contribution (Company Expense) tax code
Interim withheld income tax and social contributions payment	Credit	Interim Tax Payment Account of the tax declaration master.	Tax Declaration Master (tfgld1620m000)

 

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Step 4. Periodical withheld income tax and social contributions payment

If you proces the payment of the withheld income tax and social contributions declaration, LN creates the following postings:

Amount	Debit/ Credit	Ledger account	Defined in session
Interim withheld income tax and social contributions payment	Debit	Interim Tax Payment Account of the tax declaration master.	Tax Declaration Master (tfgld1620m000)
Bank	Credit	Account selected for the transaction type used for the bank in Cash Management.