In the latest version (21.7.10) it is now possible to define withholding tax on purchase invoices.
When withholding tax checkbox is checked and rate or amount is defined, Manager will deduct the withholding tax from accounts payable and post it to new
Withholding tax payable liability account.
When payment for withholding tax from purchase invoice is made, just create
New Payment and allocate the payment to
Withholding tax payable account then select supplier.
There is also easier way. You can go to
Suppliers tab where you will see two amounts.
Withholding tax payable amount, then click
New Payment button which will automatically pre-fill
New Payment transaction.
Withholding tax payable can be used on receipts, expense claims and journal entries as well.
Payment rules can be also set up so they automatically categorize desired transactions to
Withholding tax payable.