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I have invoiced my customer, for say $5000
They have paid me $4000 and paid $1000 on my behalf for taxes (NZ withholding tax for contractors)
How do I record in QBO that the full $5000 invoice is paid, even though I only received $4000 into my account? When I try to enter it QBO says there's still $1000 unpaid. How do I make it so that the full invoice is considered as being paid, I need to record that $1000 going to tax from that same payment somehow.
EDIT
I guess it would be the opposite side of this kind of transaction mentioned in this post - Solved: How to record and pay withholding tax on supplier'... (intuit.com)
Thanks
Solved! Go to Solution.
I'll be glad to help you record an invoice payment where the customer pays a portion for the tax, @Mida Valo.
If your customer pays their invoice but withholds tax, use a credit note to charge off the withholding tax as an expense. Doing so will mark the invoice as paid in full.
To begin, set up a withholding tax expense account:
Then, set up the withholding tax expense item:
Then, proceed to Steps 3 and 4 in this article to complete the process: How do I record tax withheld by my customer?.
I'm also adding this resource to help you manage invoice fees in QuickBooks: Record invoice payments in QuickBooks Online.
Keep in touch if you have other questions about handling invoices in QuickBooks. I'll be happy to lend a helping hand. Stay safe always.
I'll be glad to help you record an invoice payment where the customer pays a portion for the tax, @Mida Valo.
If your customer pays their invoice but withholds tax, use a credit note to charge off the withholding tax as an expense. Doing so will mark the invoice as paid in full.
To begin, set up a withholding tax expense account:
Then, set up the withholding tax expense item:
Then, proceed to Steps 3 and 4 in this article to complete the process: How do I record tax withheld by my customer?.
I'm also adding this resource to help you manage invoice fees in QuickBooks: Record invoice payments in QuickBooks Online.
Keep in touch if you have other questions about handling invoices in QuickBooks. I'll be happy to lend a helping hand. Stay safe always.
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