ERPNext Walkthroughs Accounts

Withholding on a supplier deposit

Requires: Cecypo PowerPack

Pay a supplier a deposit against a Purchase Order with Kenya withholding worked out, then see it follow the Purchase Invoice to KRA, or release it when no invoice will come.

A deposit against a Purchase Order

A deposit against a Purchase OrderPurchase Order, then Payment Entry; Payment Entry, then Due to KRA report; Due to KRA report, then Purchase Invoice; Purchase Invoice, then Issue Payment; Issue Payment, then iTax CSV; Due to KRA report, then Release Withholding; Release Withholding, then Journal Entry.no invoicePurchase OrderPayment EntryDue to KRA reportPurchase InvoiceIssue PaymentiTax CSVReleaseWithholdingJournal Entry
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Dashed boxes happen before or after this walkthrough.
Step 1: Start the deposit

Step 1 of 18

Start the deposit

A supplier asks for a deposit before delivering. New Payment Entry: Payment Type Pay, Party Type Supplier, the supplier and the bank you pay from.

Arrow keys or space also move through the steps.

Steps

  1. A supplier asks for a deposit before delivering. New Payment Entry: Payment Type Pay, Party Type Supplier, the supplier and the bank you pay from.

  2. The deposit is against an order, not an invoice. Click Get Outstanding Orders to list the supplier's Purchase Orders.

  3. The Purchase Order comes in at its full amount. Lower Allocated Amount to the deposit you are paying, here about half.

  4. Withholding Details: one row for the order, with the base, the rate and the amount. The row carries the Purchase Order and no invoice, because there is no invoice yet.

  5. The bank pays the deposit less the withholding. Withheld sits beside Paid Amount.

  6. Save, then Submit. The supplier gets the deposit net of withholding, and the withheld amount is due to KRA.

  7. Report Withholding Due to KRA. The deposit row shows its Purchase Order and Awaiting invoice: KRA is filed against invoices, so it cannot be paid yet. The report has more columns than shown here.

  8. Tick the deposit row and click Issue Payment.

  9. The report refuses and tells you to set the deposit against the Purchase Invoice first. Nothing is paid.

  10. When the goods are delivered, make the Purchase Invoice from the Purchase Order and enter the supplier's bill number and date.

  11. On the Payments tab, open Advance Payments and click Get Advances Paid. The deposit paid against this order is listed.

  12. The deposit paid against the order is now allocated to this invoice.

  13. Save, then Submit the Purchase Invoice.

  14. Back in the report, the deposit row has the invoice and the supplier's bill number. It is ready for the iTax CSV and Issue Payment like any other row.

  15. Another supplier's order was cancelled after the deposit. Its row will wait for ever. Tick it and click Release Withholding.

  16. Choose the Posting Date and give a Reason, then Release. The withholding is handed back to the supplier instead of being filed with KRA.

  17. Release posts one Journal Entry: it debits the withholding account and credits the supplier.

  18. Filter Status to Released: the row is there with the Journal Entry that released it, and it is out of the amounts owed to KRA.