Overview:
In Acumatica, the standard behavior calculates and records Withholding Tax at the time of payment. However, for compliance with local statutory requirements (e.g., India), we are exploring whether it is possible to calculate and post Withholding Tax at the bill creation stage instead.
Current System Behavior in Acumatica
1. Bill Creation (No WHT Yet)
| Account | Debit (Dr) | Credit (Cr) |
| Purchase/Expense A/c | 100 |
|
| Accounts Payable |
| 100 |
2. Payment (WHT Applied)
| Account | Debit (Dr) | Credit (Cr) |
| Accounts Payable | 100 |
|
| Withholding Tax Payable |
| 1 |
| Cash/Bank |
| 99 |
Expected Behavior (Needed)
1. Bill Creation (WHT Recorded Immediately)
| Account | Debit (Dr) | Credit (Cr) |
| Purchase/Expense A/c | 100 |
|
| Withholding Tax Payable |
| 1 |
| Accounts Payable |
| 99 |
2. Payment (No Additional WHT Action)
| Account | Debit (Dr) | Credit (Cr) |
| Accounts Payable | 99 |
|
| Cash/Bank |
| 99 |
Questions to the Community:
- Is there any out-of-the-box configuration in Acumatica to enable Withholding Tax calculation at the AP Bill entry stage rather than at payment?
- Has anyone implemented a customization or workaround to achieve this behavior?
