Can QBO input Creditable Tax Withheld at Source in Purchase Invoice?


Hello there, m3n3m1s!

You can create a credit note for your customer's Creditable Tax Withheld. I'll be happy to share a few insights and help you from there.

To start with, you'll have to create a withholding tax expense account. Here's how:

  1. Go to Accounting.
  2. Select Chart of Accounts.
  3. Click New.
  4. Under Account Type, select Other Expense.
  5. From the Detail Type menu, choose Other Miscellaneous Expense.
  6. Enter Withholding Tax Expense as your account name.
  7. Click Save.
From there, you'll have to create a new service item for your customer's tax withheld. Let me show you how:
  1. Go to Sales.
  2. Select Products and Service.
  3. Click New.
  4. Choose Service.
  5. Enter Withholding Tax as the name of your service item.
  6. Under Income account, select your recently created expense account.
  7. Click Save and close.
Once done, you can simply create and add your credit note which is your customer's creditable tax withheld when you receive payment.

For your reference, here's an article you can read to learn more about recording your customer's tax withheld:  How do I Record Tax Withheld by my Customer?

Please let me know in the comment section down below if you have any other questions. I'll be always around ready to help.
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