Managing withholdings for purchase invoices

Sage Active allows you to easily manage withholdings while recording purchase invoices.

Prerequisites

The correct tax forms (111 and/or 115) are set up for your business.
The IRPF tax rates are active and their Ledger account is informed in Settings > Tax rates.
Optionally, the purchase ledger accounts are set up for automatic VAT calculation.

You need to set up the supplier to manage withholdings first to make sure that the recording of purchase invoice takes the correct rate into account.

To configure your supplier:

Open the Suppliers list.
Third parties > Suppliers
Select a supplier.
Activate Personal income tax to select a Tax treatment.
Update the changes.

When you select the supplier during the recording of your purchase invoices, the line related to the chosen Tax treatment is automatically added to the journal entry and you can record the invoice like a standard purchase invoice.

After posting the purchase invoice, the relevant tax form is updated with the amounts in the invoice.

The automatic addition of the line for the Tax treatment works for purchase invoices recorded manually and using OCR.