Voiding Withholding Tax Transactions

There may be times when incorrect withholding tax transactions are generated, for example if you select the wrong source transactions or the tax rate is incorrect.

If you notice the error after you have posted the journal files you must reverse these journals in Journal Reversal and Copy (JRC).

Source transactions and withholding tax transactions must be reversed separately if the journal types are different.

All withholding tax transactions are hard posted, even if the source transactions are provisionally posted.

If you are using invoice posting point, if the provisional transactions are posted again, the previous withholding tax transactions could be automatically reversed and new withholding tax may be recalculated. However, if you are using the cumulative calculation type and the cumulative amount is less, then the non-taxable amount is not reversed.

If you are using payment posting point, withholding tax is not recalculated if the relating withholding tax transactions already exist.

Note: Only generated withholding tax transaction lines are reversed. For cumulative type, if the base amount is less than the Minimum Non-Taxable Base amount, the cumulative amount in the cumulative table is not reversed.