Hello Odel,

Would using the Adagio Payables early payment discount, as suggested earlier by our Technical Support department work for you? While you would not get the amounts reflected in a tax tracking report, it would have the advantage of sending the liability to the general ledger in the period that the invoice is paid.

PS - Remember, there's no guaranteed response time in the forum.

HI Andrew,

Yes this would work for me, how does it work.

PS. Sorry for the rush, i wanted to instruct my staff going foward.

Create an early payment discount term that takes the 10% due to the government and discounts the invoice by that amount when it's paid before a specifc date (you'll want to have that date a long way in the future). Charge these discounts to the liability account in your g/l. At the end of the month, list the transactions in the account and remit it to the government.

Your Adagio consultant should be able to help you with the specifics.

Hi Odel,

Wow - your Government has really complicated the accounting for you and your vendor. It may be easier to vote them out next time around, but I guess that would still leave us with the problem of dealing with your requirement now.

Question - Is this peculiar to your industry/business ? So far, none of the other St. Lucia end users have requested this.

I wonder how the Vendor's AR deals with billing you the full amount (11K) when they'll never see the WT portion (1K), nor do they owe the 1K to anyone ??? (maybe early payment discounts in AR) Doesn't make sense but I guess that's not your problem unless you are sometimes the subcontractor ???

Anyway, back to the AP issue - The Early Payment Discount Term workaround mentioned above is the only way I can think of to handle your scenario at Payment time. However, you'll still have to override the Payment and Discount amounts at payment time as it will be difficult (maybe impossible) to automatically calculate this. Bear in mind that while 10% of 10K is 1K, 10% of 11K is not 1K. When setting up the Terms code 9.09% is closer to what you would need but not exact and I believe that Adagio will only go to 2 decimal places on the discount %. As stated be sure to set the Discount Due Date to calculate way into the future.

Also bear in mind that the Discount Account is defined in the Control Account Set and cannot be overridden at transaction time so once you set the Discount Account to your Withholding Tax Liability account, all discounts for all vendors in that Control Account Set will be posted there. Shouldn't be a problem if, as noted above, you don't use payment discounts for any other purpose.

It's really not an ideal situation and I suggest you do a thorough analysis of the workaround on a copy of your data before implementing live. You should definitely give your Adagio Consultant a call on this.

Thank you so much, I will contact our consultants

Dear All,

Thanks for the help on this one, the work around using the early payment discount is working fine for us.