Combining Landed Cost on PO Receipt with Subcontract PIT Withholding?

Hi ​@nomii ,

Recommended Workaround: Clearing Account Method
Flow:
1. Create a regular AP Bill for the delivery cost, posting to a "Delivery Cost Clearing" liability/expense account. Use this bill as the Landed Cost document on your PO Receipt.
2. Process the Subcontract for the same contractor as normal (with PIT withholding calculated automatically).
3. Journal Entry or offset — periodically reconcile the clearing account against the subcontract expense account so they net to zero.
Result:
- Inventory absorbs the delivery cost (via Landed Cost on the receipt)
- PIT is still calculated correctly (via the Subcontract)
- The clearing account nets to zero after reconciliation
Considerations
- Vendor setup: You may need the contractor set up as two vendor records (one for the bill, one for the subcontract) or use the same vendor but track by document type.
- Timing: If the bill and subcontract are in the same period, the clearing account washes out cleanly.
- Automation: You could use a recurring journal or an automation schedule to offset the clearing account monthly.
- Audit trail: Document the process clearly — auditors will want to see why there's both a bill and a subcontract for the same service.

Hope above helps!!

Before building the clearing-account structure, it's worth testing whether you need the subcontract for the PIT at all.

In Acumatica, withholding tax isn't a subcontract mechanism. It's driven by the vendor's Tax Zone plus the Tax Category on the line, calculated on the AP bill and recognised when the payment is released — not on the bill itself. Nothing about that requires a subcontract document.

So the test is: put the contractor's tax zone on a plain AP bill, give the delivery line the withholding tax category, and see whether the PIT calculates. If it does, that same bill can serve as your landed cost document, and you're done — no clearing account, no duplicate vendor record, no monthly offset JE.

Worth confirming it behaves that way in your localisation before relying on it.

If you're keeping subcontracts for other reasons — retainage, change orders, compliance reporting — then Rakshanda's clearing-account approach is the right fallback. I'd just rule out the simpler path first, because the reconciliation and dual-vendor setup carry real ongoing cost.