Withholding Tax on a Journal Entry

The Israel Localization offers the option to enter a vendor payment as a Journal Entry.

To enter a journal entry with a withholding tax deduction:

Note:

The Withholding Tax percentage on the vendor must be 0% if you add a WHT journal for that vendor.

1. Go to Transactions > Financial > Make Journal Entries.

2. From the Custom Form list, select IL Journal Entry.

3. Check the Include in WHT box.

4. Click Save.

To manually create a journal entry with withholding tax:

1. Go to Transactions > Financial > Make Journal Entries.

2. From the Custom Form list, select IL Journal Entry.

3. Check the Include in WHT box and fill in the following:

   • On the Lines tab enter an account.

   • In the Debit field: enter: an account payable + vendor name (Tax amount & Tax % will appear automatically).

   • In the Credit field, enter: a bank account or credit card.

If the Include in WHT box is checked, the Journal Entries appears in monthly (102) & yearly (856) reports as payments.

General Notices