Before you start to create a purchase documents for a subcontractor that is registered for retention tax you need to do some setup on the vendors, items, resources and G/L accounts. You find more information here.
Purchase document
- Choose the 🔎 icon, enter Purchase Order/Purchase Invoice, and then choose the related link.
- Fill in the fields as necessary. Hover over a field to read a short description. If the vendor is registered for retention tax all lines, except the type of Comment, Fixed Asset and Charge (Item), automatically gets the CIS/RCT Business Posting Group populated on the line.
- If the CIS/RCT Product Posting Group is not set on the resource, item or g/l account, you need to add this information on the line.
When posting the purchase invoice the system creates a CIS/RCT Entry and Detailed CIS/RCT Entry when you post the purchase invoice. The deducted tax amount is recorded in the Expected Amount field.
Pay a purchase invoice
When you create a payment an additional Detailed CIS/RCT Entry will be created. This entry will have the Type Application. On the CIS/RCT Entry, the Expected Amount will be reduced and the Actual Amount will be increased with a ratio of the payment.
When the document applied, the CIS/RCT Entry and the last Detailed CIS/RCT Entry will have Expected Amount zero and Actual Amount with entire deduction.