Thanks for your response,

Our company is using terms but not the eraly payment discount based on terms.

Here is a transaction of an invoice which is subject to Gov't tax;
A subcontractor bills us for work done on a project on our behalf. He submitts his bill say $11,000.00 being Labour - $10k
and Gov't tax (10%) -1k (held by the company at the time of payment)

In AP the invoce charges the expense with the full invoice amount 11k. When paying the invoice 10k is applied to the invoice leaving the tax amount in the vendors account.(not good)

We would like to see the total invoice cleared but creating a charge in a liability account "Witholding Tax Payable"

I would be happy to treat this like a discount however it must be charged to the liability account, as a debt to the Government.

Thanks for you time, hope this is sufficient to give me a definite way foward.


Regards