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We invoice a foreign customer who pays in dollars for example $40,000.
But he witholds 25% for local taxes, that is, $10,000 and pays $30,000.
How do I record the invoice payment amount and the taxes paid to the expense account.
Thanks for the in-depth information about you concern, @devapatir,
Recording an invoice payment alongside with the fees and tax expense is easy. I've outlined a step-by step process for you to follow:
Step 1: Create the customer's invoice.
Step 2: Receive the full invoice payment then save it to the Undeposited Funds account.
Step 3: Enter a Bank Deposit with the local tax to get the deposit the $30,000. (See screenshot)
For other tasks and features in QuickBooks Desktop, check out our user guide here.
If you have follow-up questions about this, let me know in the comment below. I'll be available to help you at any time. Have a wonderful day!
Works perfectly. Thanks