The customer does not pay cash to you, but they pay cash on your behalf and return a certificate confirming the payment on your behalf to you. They pay tax on your behalf to offset your obligation to the tax authority. It is the same as a customer settling a trade payable on your behalf and asking you to offset their liability to you (and not the Total Sales Amount).
The invoice does not automatically put the tax liability on the customer, it is never a part of a sale contract. I wouldn’t want us to look at this from the customer’s perspective. We should look at this from the suppliers perspective.
Remember the withholding tax workflow allows users to conveniently track withholding taxes receivable but it is not a requirement to show the withholding tax receivable on an invoice (though it is a requirement to show the ‘Invoice Total Amount’) nor is it to be treated as some reduction or discount. Discounts are irrecoverable, Withholding tax is recoverable (part of the sale).
The Withheld amount is of course an asset, it was an asset in the first place. I’m saying until a tax certificate is received, the asset is technically a trade receivable.
It is this issue that has caused the problem in the Sales Order Tab, No sales Order will ever get completed as the amount reported as Sales Order is always going to be higher than the Invoiced Amount.
The question is, why call the 114,000 Total and call 105,450 Invoice Total in another place?
I’m only calling for a better name for the 105,450 in the Sales Invoice Tab and on the invoice if that is the figure we are going to see in the Sales Invoice tab