Withholding Taxes on Payment Acceptance

Important:

This topic pertains to withholding tax in NetSuite accounts that do not have the SuiteTax feature enabled. If you are using a NetSuite account where the SuiteTax feature is enabled, go to Withholding Taxes in SuiteTax.

Withholding tax is no longer being updated for new features and reports in accounts that do not have the SuiteTax feature. All version upgrades of the Withholding Tax SuiteApp include fixes for reported issues only.

To record withholding taxes on acceptance of a customer payment:

Go to Transactions > Customers > Accept Customer Payments.
On the Payment form, select a customer that you want to accept payment from.

The Payment page displays a list of all open invoices.
Check the boxes in the Apply column next to the invoices that the customer payment should be applied to. Or click Pay All to apply the customer payment to all the invoices.

Note:
When accepting a payment from a customer, NetSuite calculates and shows the total tax withheld by the customer from the selected invoices.
Enter payment amounts, net of withholding tax, in the Payment column.

Note:
If you want to see the amount of tax withheld by the customer from each individual invoice, you can customize the payment sublist on the Apply tab to show the withholding tax amount and total amount, including withholding tax for each invoice. See Displaying the Withholding Tax Amount and Total Amount Columns on the Payment Page.
To apply a partial payment for an invoice, enter the payment amount (net of withholding tax) in the Payment column of the invoice. The system calculates the withholding tax amount (or the gross amount still including the withholding tax).
To apply a discount on a payment, enter an amount in the Disc. Taken column of the invoice. The system recalculates and the amount in the Payment column changes, taking into effect the cash discount.

Note:
Currently cash discounts only affect the final cash payment and are not included when computing the withholding tax amount.
Click Save. The withholding tax amounts are automatically posted to the appropriate general ledger accounts.
- NetSuite creates a credit memo for each invoice paid to record the effect of withholding tax on customer payments. Posting of the withholding tax amounts might take a few minutes to complete and can only process up to 1000 invoice records. When accepting a payment, you must only have up to 1000 open invoices for NetSuite to create a credit memo.
  
  Note:
  The payment record cannot be edited while the posting of withholding tax is ongoing.
- To see all associated credit records, click the Withholding Tax tab. This tab is available only on the parent payment record. The credit records are also associated with the parent payment record.
- In the More Actions menu, click GL Impact to view the GL Impact page for this transaction.

Displaying the Withholding Tax Amount and Total Amount Columns on the Payment Page

You can customize the payment sublist on the Apply tab of the Payment page to show the withholding tax amount and total amount, including withholding tax for each invoice.

Important:

Users who want to see these columns must customize the payment sublist in their own account. These columns will only show values in Create and Edit mode. You can perform this step only one time, after which the columns will show up each time the Payment page is displayed.

To show the Withholding Tax Amount and Total Amount columns:

On the Payment page, go to the Apply subtab, and click Customize.
On the Customize Sublist page, under Additional Columns, select the Tax Withheld and Total Amount fields.
Click Save.

The Tax Withheld and Total Amount columns will now show up in the sublist next to the payment amount.

Note:
If there are more than 100 unpaid bills on the page, you should clear the Apply box next to the bill you want to pay. Check the Apply box again to show the payment amount net of the withholding tax.

To record withholding taxes on acceptance of a customer payment:

Displaying the Withholding Tax Amount and Total Amount Columns on the Payment Page

To show the Withholding Tax Amount and Total Amount columns:

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