Recording withholdings in purchase journal entries

30 September 2024 | 19  | #

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

Prerequisites
  • The correct tax forms (111 and/or 115) are set up for your business.
  • The option Personal income tax is active and the Tax treatment is informed for each supplier you need to record withholdings for.
  • 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. This assures that the related VAT ledger account is added automatically to the journal entry.

To record a purchase journal entry with withholdings:

  1. Access your Journal entries.

    Accounting > Journal entries

  2. Create the purchase journal entry ( +Create).
  3. Complete the required fields in the header.
  4. Add the journal entry lines (Add).
    When you enter the third party line using a supplier set up with Personal income tax, the correct withholdings line based on the Tax treatment appears automatically.
    When you enter the purchase ledger account and amount, the tax amounts will be calculated automatically.
  5. Optionally, you can verify the different tax rates in the Invoice details section.
  6. Create the journal entry ( Create and new).

Journal entries created in this way are correctly included in the relevant tax forms and will be taken into account in the Export to tax consultant.

 

Was this content helpful to you?

Would you like to add some helpful comment here?

All the fields of this form are mandatory.

   
 

Check our other resources